EANS-News: LHS Aktiengesellschaft / LHS announces double-digit growth in revenue and profit for 2009

LHS goes from strength to strength with another record quarter

and excellent annual results.

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Financial Figures/Balance Sheet

Subtitle: LHS goes from strength to strength with another record
quarter and excellent annual results.

Frankfurt am Main (euro adhoc) - LHS, part of the Ericsson Group
(NASDAQ:ERIC) and a leading provider of telecom billing and customer
care systems across the wireless, wireline, and IP telecom markets
worldwide, today announced the preliminary results for the fourth
quarter and the fiscal year 2009 for the period ended December 31st
2009. The preliminary results were prepared in accordance with the
International Financial Reporting Standards (IFRS). They include the
following key figures for fiscal 2009:

LHS´ turnover increased to EUR 125.8 million in fiscal 2009, a
year-on-year growth of 13 percent. In 2008, the annual turnover was
EUR 111.8 million.

In the fourth quarter 2009 the company was able to achieve a record
turnover of EUR 35.7 million. This represents a growth rate of 10.5
percent compared to the same quarter of the previous year and 11
percent compared to the third quarter of 2009.

The adjusted EBITDA increased in the financial year from EUR 24.5
million to EUR 29.1 million, an increase of 19 percent. The adjusted
EBITDA increased in the fourth quarter by approximately 20 percent
from EUR 7.4 million to EUR 8.8 million.

The earnings per share in the year under review were EUR 1.16
compared to EUR 0.91 in 2008. In the fourth quarter, earnings per
share rose from EUR 0.15 to EUR 0.37, a rise of 148 percent.

The cash flow for the fiscal year 2009 increased by 78 percent from
EUR 9.7 million EUR 17.3 million. In the fourth quarter, cash flow
rose by 97 percent to EUR 14.4 million compared to EUR 7.3 in the
same quarter of 2008.

2009 highlights Based on the corporate results and at constant
currency, LHS was the best market performer in terms of growth
figures amongst all major billing suppliers globally in 2009.

2009 also saw a continuous investment in personnel, with the number
of staff permanently employed increasing from 769 at the start of the
year to 853 at year close (an increase of eleven percent). Most of
the new headcounts were created in LHS´ services business,
encompassing consulting, project and implementation services, as well
as training and education.

In its defined target markets, LHS further gained market share and
now has 21.9 percent share of the wireless postpaid market and serves
336 million subscribers (pre- and postpaid) in total.

A key contributor to LHS´ continued success in 2009 was its rigorous
cost consciousness. Once again it was possible to maintain and manage
the cost base very well thus improving the productivity and
profitability of the organization: this is reflected in the excellent
EBITDA and net profit results.

"We are delighted to be able once again to report such excellent
results", said Wolfgang Kroh, Chief Executive Officer of LHS
Aktiengesellschaft. "This success is due to the hard work and
commitment from our motivated employees as well as the intensive and
excellent cooperation with our customers and partners", he added. "In
2010 we will continue to develop all relevant markets that will help
us to reach our goal of becoming the global market leader for
convergent billing and customer care systems".

Fourth quarter highlights The results for the fourth quarter were
characterized by exceptional growth in the MEA / APAC region
(revenues up 85 percent compared to the same quarter in 2008)
coinciding with large subscriber upgrades at customers in emerging
countries and a large deal in Asia.

Partnership with Ericsson At the reporting date of December 31st
2009, the majority shareholder Ericsson owned 99.8 percent of LHS
shares and the squeeze out resolution was passed at the extraordinary
AGM held on Dec 21 2009. This process is expected to be finalized
during 2010. The cooperation between Ericsson and LHS overall is
showing big improvements and was particularly fruitful for LHS in its
MEA region, with successful sales of the Joint Convergence Solution
to several accounts.

Objectives for 2010 The billing market is forecast to experience a
difficult operating environment in 2010 with growth expected to be
below 5 percent.

LHS is aiming to maintain the profitability ratios it has shown until
now and achieve growth rates above those of the market forecasts.

Annual Report 2009 The 2009 Annual Report will be available for
download from the Internet in March 2010.

About LHS LHS, part of the Ericsson Group (NASDAQ:ERIC), 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 Frankfurt Stock Exchange (LHS400).

For more information, please visit
www.lhsgroup.com.

About Ericsson Ericsson is the world´s leading provider of technology
and services to telecom operators. Ericsson is the leader in 2G, 3G
and 4G mobile technologies, and provides support for networks with
over 1 billion subscribers and has a leading position in managed
services. The company´s portfolio comprises mobile and fixed network
infrastructure, telecom services, software, broadband and multimedia
solutions for operators, enterprises and the media industry. The Sony
Ericsson and ST-Ericsson joint ventures provide consumers with
feature-rich personal mobile devices.

Ericsson is advancing its vision of "to be the prime driver in an
all-communicating world" through innovation, technology, and
sustainable business solutions. Working in 175 countries, more than
75,000 employees generated revenue of SEK 209 billion (USD 32.2
billion) in 2008. Founded in 1876 with the headquarters in Stockholm,
Sweden, Ericsson is listed on NASDAQ OMX Stockholm and NASDAQ New
York.

www.ericsson.com
www.twitter.com/ericssonpress

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

Further inquiry note:

LHS

Lorna Putze

PR Communications Manager

Herriotstraße 1

60528 Frankfurt am Main

Telefon: +49 (0)69-2383-3000

Fax: +49 (0)69-2383 5710

E-Mail: enquiries@lhsgroup.com

Branche: Software
ISIN: DE000LHS4000
WKN: LHS400
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