LHS Aktiengesellschaft announces financial results for the first quarter 2007

Revenue growth of 56 percent in first quarter 2007 - Full-year
guidance for 2007 raised to E 90 - 93 million revenue - 45 new
employees

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finances

Frankfurt am Main (euro adhoc) - April 25th, 2007 - LHS, a leading
provider of telecom billing and customer care systems across the
wireless, wireline, and IP telecom markets worldwide, today announces
its first quarter results for the period that ended March 31, 2007.

Prepared in accordance with International Financial Reporting
Standards (IFRS), the results included the following key figures for
the first quarter of 2007:

- Revenue for the first quarter in 2007 increased by 56 percent from
E 14 million to E 21.7 million compared to the first quarter of 2006.
- The adjusted EBITDA increased from E 1.7 million in the first
quarter 2006 to E 4.1 million in the first quarter of 2007, an
increase of 135 percent. - Adjusted net profit (less stock option
expenses) for the first quarter 2007 reached E 3.7 million compared
to E 0.5 million in the first quarter 2006. - The adjusted basic
earnings per share (based on the adjusted net profit) for the first
quarter 2007 is E 0.26; while the respective diluted earnings per
share for the first quarter 2007 is as well E 0.26. - In the first
quarter 2007, the company was able to increase its free cash flow
from E 2.5 million in first quarter 2006 to E 5 million.

The global telecommunications markets are growing dynamically. In the
growth markets in Middle East, Africa and Asia LHS achieved a revenue
of E 9.7 million, a growth rate of 83 percent compared to the first
quarter of 2006. The region represented 44.8 percent of the total
revenue of LHS for the first quarter of 2007.

In Europe, LHS reached a turnover of E 7.1 million for the first
quarter 2007, an increase of 21.5 percent. Europe now represents 32.8
percent of total revenues. In Latin America the company achieved a
growth rate of 74.2 percent with E 4.9 million and represents 22.3
percent of total revenues.

Operational highlights indicate ongoing growth

The first quarter of 2007 was highly successful for LHS. Key
operational highlights include:

- Five new projects were signed. These consisted of one new customer
in the region of Middle East and four existing customers who did
switch or are in the process of switching to the latest versions of
BSCS. The number of projects for our latest version of BSCS iX that
was only launched in October 2006 now amounts to eight. - At the end
of the first quarter 2007, LHS had a total of 122 installations
compared to 114 at the end of the first quarter 2006. - LHS
successfully positioned in the pre-paid postpaid convergence market.
- LHS created 45 new jobs, of which 20 are in Frankfurt/Germany, 18
in Sao Paolo/Brazil and 7 in Kuala Lumpur/Malaysia.

Wolfgang Kroh, Chief Executive Officer at LHS commented on the first
quarter results by saying: "The excellent result of the first quarter
of 2007 took LHS another step further on its growth path and is the
achievement of outstanding worldwide cooperation. We grew strongly in
emerging markets, especially in the Middle East, and gained strong
momentum in Latin America. Together with our partners we will
continue to work at our target of worldwide market leadership as an
independent software vendor in our market segment with maximum
commitment."

Positive future outlook

For fiscal 2007, LHS expects this positive development with ongoing
growth to continue. The company's full-year guidance for 2007 has
been raised to E 90 to E 93 in revenue from the previous E 86 to E 89
million. Expected adjusted EBITDA margin for fiscal 2007 remains at
around 20 percent. For the second quarter of fiscal 2007 LHS expects
revenues of around E 23 million with an adjusted EBITDA of around 19
percent.

"The excellent results of the first quarter 2007 showed that the
company's orientation to sustained profitable growth is highly
successful. One of LHS' most fundamental strengths is its customer
base and we will continue to work in every area to maintain and grow
this customer base in order to secure an even broader foundation for
growth of LHS," says Wolfgang Kroh, Chief Executive Officer at LHS.

The quarterly report is available on our website: http://www.lhsgroup
.com/internet/pages/investor_relations/d/home/thema.php

About LHS LHS is a leading provider of telecom billing and customer
care systems across the wireless, wireline, and IP telecom markets
worldwide. LHS Business Support Systems offer full convergence on
various levels, supporting the complete range of business models both
across the mix of fixed and mobile services, as well as prepaid and
postpaid services. LHS builds innovative systems that enable our
customers to introduce new services fast, helping drive revenues up,
while keeping operational costs to a minimum. LHS was awarded "Best
Billing or Customer Care Solution" by the GSM Association in Cannes
in 2005, and won the IIR World Billing Awards for its "Overall Best
Contribution to Billing" in London in 2005 and 2006. LHS is an
independent software vendor (ISV) with headquarters in Germany, and
offices in Brazil, Czech Republic, France, Malaysia, Turkey, and
United Arab Emirates. LHS is part of the LHS Group, and LHS
Aktiengesellschaft as the Group's Holding company is a public company
listed on the Frankfurter Stock Exchange (LHS400). For more
information, please visit www.lhsgroup.com

Disclaimer: This press release contains certain forward-looking
statements relating to the business, financial performance and
results of the Company and / or the industry in which the Company
operates. Forward-looking statements concern future circumstances and
results and other statements that are not historical facts. The
forward-looking statements, including assumptions, opinions and views
of the Company contained in this press release are solely opinions
and forecasts which are uncertain and subject to risks. A multitude
of factors can cause actual events to differ significantly from any
anticipated development. The Company is under no obligation to update
or keep current the information contained in this press release to
which they relate and any opinions expressed in them are subject to
change without notice.

end of announcement euro adhoc 25.04.2007 07:00:00
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ots Originaltext: LHS Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
LHS
Nicole Thierhoff
Director Market Strategy & PR
Herriotstrasse 1
60528 Frankfurt/Main
Germany
Phone: +49 (0)69-2383 3555
Fax: +49 (0)69-2383 5710
E-Mail: nicole.thierhoff@lhsgroup.com

Fink & Fuchs Public Relations AG
Stefanie Wegner
Senior Consultant
Berliner Strasse 164
65205 Wiesbaden
Germany
Phone.: +49 (0)611-74 131-66
Fax: +49 (0)611-74 131-22
E-Mail: stefanie.wegner@ffpr.de
www.ffpress.net

Branche: Software
ISIN: DE000LHS4000
WKN: LHS400
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade