LHS reports double-digit growth turnover and earnings in fiscal 2008

Record turnover in the fourth quarter – Set goals achieved – Growth
strategy continues uninterrupted

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balance/corporate results

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 the results for the
fourth quarter and the fiscal year 2008 for the period ended December
31, 2008. The audited results were prepared in accordance with
International Financial Reporting Standards (IFRS). They include the
following key figures for fiscal 2008:

* In the fourth quarter 2008 the company was able to achieve a record
turnover of EUR 32.3 million, which was for the first time in excess
of EUR 30 million. This represents a growth of 19 percent compared to
the same quarter of the previous year.

* LHS' turnover increased to EUR 111.8 million in fiscal 2008, which
is 14 percent growth year-on-year. In the year 2007, the company
achieved a turnover of EUR 98.2 million.

* The adjusted EBITDA increased in fiscal 2008 by approximately 20
percent from EUR 20.4 million to EUR 24.5 million.

* The adjusted earnings per share in the year under review were EUR
0.91 (undiluted) and EUR 0.91 (diluted).

* In the period under review, the cash flow of LHS reached EUR 9.7
million.

Continued increase in customer and employee numbers LHS was able to
once again expand its revenue and market position. Overall, the
company signed contracts with ten new customers. At the end of 2008,
LHS had a total of 132 installations around the world, which served
approximately 250 million mobile services customers. The results of
fiscal 2008 are clear evidence that LHS followed the correct
international strategy by focusing on the growth regions of Europe,
Asia/Pacific, Middle East/Africa and Latin America. In these markets,
especially in the so-called emerging markets, the company was able to
once again substantially expand its sales potential. In addition, LHS
created 98 new jobs in 2008, which is an increase of approximately 15
percent.

A key factor for this success was LHS' network of infrastructure
providers, technology partners and system integrators. To further
increase its customer services, LHS launched a new engagement model
for the implementation of its solutions. In cooperation with four
selected strategic system integration partners, LHS wants to offer
its customers optimized project duration and costs for the
installation of increasingly complex billing and customer care
systems. This aim is achieved with the help of four partners who
themselves are very experienced in the telecommunications market and
have proven their expertise in numerous BSCS billing projects -
Alcatel-Lucent, Atos Origin, Capgemini and Ericsson.

"Corporate development in the year 2008 was fully in line with our
expectations," said Wolfgang Kroh, CEO of LHS Aktiengesellschaft.
"This is primarily due to the outstanding motivation of LHS staff
across all departments, as well as the trust and support of our
partners and customers. We will continue towards our goal of
developing all markets that are relevant to our products and becoming
the global market leader for convergent billing and customer care
systems."

Objectives for 2009 In the year 2009, LHS plans to further strengthen
its technological position in the convergent solutions market through
the continuous development of its BSCS iX product and via strategic
partnerships with network providers. In the coming years, it will
continue to focus on the constant expansion of the customer base and
the continuous improvement of its earning power. In the future, the
close partnership with Ericsson, its main share holder, gives LHS the
chance to strengthen and further develop its market position as the
leading provider of convergent customer care and billing systems in
the long term. Despite the current turbulences in the financial
markets, LHS' plans for fiscal 2009 include another increase in total
turnover with stable or improved earnings.

Ericsson - a powerful partner At the reporting date of December 31,
2008, the majority share holder Ericsson owned approximately 87.5
percent of LHS shares. The very constructive cooperation with
Ericsson strengthens the international sales activities of LHS - also
and in particular in regions where LHS is not active yet.
Furthermore, LHS customers can benefit from single-source complete
convergence solutions.

Annual Report 2008 The 2008 annual report will be available for
download from the Internet as of early March.

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About LHS LHS is a leading independent software vendor (ISV) of
billing and customer care systems in the telecom industry. The
company's award-winning solutions are used by the world's leading
network and virtual operators, to generate and manage consistent
revenue streams. 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´ headquarters are located in Frankfurt, Germany, with main
offices in Brazil, France, Malaysia, and the UAE. 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

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

Herriotstrasse 1

60528 Frankfurt/Main

Phone: +49 (0)69-2383 3000

Fax: +49 (0)69-2383 5710

E-Mail: enquiries@lhsgroup.com

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

Fink & Fuchs Public Relations AG

Stefanie Wegner

Senior Consultant

Berliner Strasse 164

65205 Wiesbaden

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: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade