LHS announces substantial double-digit revenue and profit increase in 2007

Expected results exceeded, consistent continuation of success
strategy

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Frankfurt am Main (euro adhoc) - LHS, a leading provider of telecom
billing and customer care systems across the wireless, wireline, and
IP telecom markets worldwide, today announced its 2007 fiscal year
results for the period ended December 31, 2007. The audited results
were prepared in accordance with International Financial Reporting
Standards (IFRS). They include the following key figures for fiscal
2007:

- In fiscal 2007, LHS' revenue grew to EUR 98.2 million. This is an
increase of approximately 37 percent year-on-year. At the beginning
of 2007, the corporation expected revenues between EUR 86 million and
EUR 89 million.

- The adjusted EBITDA increased in fiscal 2007 by approximately 69
percent from EUR 12.1 million to EUR 20.4 million.

- In 2007, the adjusted income for the period under review grew 69
percent from EUR 7.8 million in the previous year to EUR 13.1
million.

- The adjusted earning per share in the year under review was EUR
0.93 (undiluted) and EUR 0.90 (diluted).

- LHS' free cash flow reached EUR 15 million in fiscal 2007. The
increase of more than 300 percent compared to 2006 highlights the
high-performance cash generation power and the strong financial
situation of the corporation.

Customer and employee base expanded LHS increased its revenue and
expanded its market positioning in Europe as well as in the emerging
markets. The corporation signed contracts for 15 new projects, of
which six were with new customers. At the end of 2007, LHS had a
total of 125 installations. Approximately 95 million postpaid end
customers were billed with software systems by LHS. This means that
the company was able to increase its global market share of the
billing of postpaid mobile communication users to 9.2 percent. If
regions such as North America, Russia and China, which were not among
its target markets in 2007, are excluded from the calculation, this
share even increases to 21.3 percent.

A key factor for this success was LHS' network of infrastructure
providers, technology partners and system integrators. For quite some
time now, LHS has been cooperating with global partners, including
Ericsson, Nokia, Siemens Networks, Alcatel-Lucent, Atos Origin,
Accenture or the CapGemini Group, which provide it with extensive
global market access. In 2007, LHS gained additional important
partners, such as Deloitte, Bull or Kvazar Micro.

LHS created 168 new jobs in 2007, of which 59 were at its home
location in Frankfurt/Main, Germany, 12 in the newly established
subsidiaries in Madrid, Athens and Prague, 47 in Sao Paulo, 10 in
Dubai, and 40 in Kuala Lumpur. On December 31, 2007 LHS had 671
fulltime employees around the world.

"We are very satisfied with our development in 2007", said Wolfgang
Kroh, Chief Executive Officer of LHS Aktiengesellschaft. "This
success is once again the result of the hard work of our committed
employees, as well as the intensive and trustful cooperation with our
customers and partners," he added.

Goals for 2008 In the current and future years, LHS will continue to
expand its customer base and continuously improve its profit-earning
capacity. Therefore, the corporation expects in 2008 revenue of
around EUR 115 million. In addition to further revenue increases,
other goals include increasing the EBITDA at least proportionally, as
well as further improving profitability, similar to the previous
year.

Ericsson majority shareholder since July 2007 Another important event
of fiscal 2007 for LHS was the entry of Ericsson as a majority
shareholder. The EU commission released the public takeover offer of
July 9, 2007 at EUR 22.50 per share on September 13, 2007. Ericsson
held around 84 percent of shares after the terms for acceptance ended
on October 8, 2007. On October 25, Ericsson had purchased an
additional 3.5 percent of the company's shares, so that Ericsson now
holds approximately 87.5 percent of total LHS shares. LHS welcomes
the new majority shareholder, since the close cooperation with
Ericsson provides LHS with the opportunity of strengthening and
further expanding the market position of the LHS Group as a leading
corporation in the area of convergent customer rating and billing
systems in the long term.

Annual Report 2007 The 2007 annual report will be available for
download from the Internet as of March 5.

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LHS
Herriotstrasse 1
60528 Frankfurt/ Main
Phone: +49 (0)69-2383 3000
Fax: +49 (0)69-2383 5710

Commercial Register: Amtsgericht Frankfurt/Main - Registration Number
HRA 42727 Personally Liable Partner: LHS Management GmbH -
Registration Number HRB 77913 Amtsgericht Frankfurt/Main Management
Board: Wolfgang Kroh, Axel Barta, Dr. Jens Troetscher

end of announcement euro adhoc
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ots Originaltext: LHS Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

LHS

Arnaud Lassalle

Vice President Marketing & Communications

Herriotstrasse 1

60528 Frankfurt am Main

Phone: +49 (0)69-2383 3000

Fax: +49 (0)69-2383 5710

E-Mail: enquiries@lhsgroup.com

Branche: Software
ISIN: DE000LHS4000
WKN: LHS400
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
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