LHS Aktiengesellschaft: Strong growth continues unabated also in the second quarter of 2007

Revenues increased by 58.7 percent - 2007 revenue guidance now
adjusted upward to EUR 95 million - award received by Frost &
Sullivan

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Frankfurt am Main (euro adhoc) - 23 July, 2007 - LHS
Aktiengesellschaft (in the following "LHS"), a leading software
provider of telecom billing and customer care systems across the
wireless, wireline, and IP telecom markets worldwide, today announced
the results for the second quarter of their fiscal year (ending on 30
June 2007).

The audited results have been established in accordance with the
International Financial Reporting Standards (IFRS), which are
mandatory for all companies borrowing on the capital market. The key
figures and ratios for the ended business quarter are as follows: *
LHS' revenues increased to EUR 24 million in the second quarter of
2007. This corresponds to a rise by 58.7 percent compared to the
relevant quarter of the previous fiscal year. Total revenues
generated in the first six months of 2007 rose by 57.3 percent to EUR
45.8 million. * The adjusted earnings before income taxes,
depreciation and amortization (adjusted EBITDA) rose about 174
percent to EUR 4.9 million because the operating expenses increased
proportionately less than sales revenues. On aggregate, adjusted
EBITDA achieved in the first half of 2007 rose by 154.5 percent to
EUR 8.9 million. * The resulting increase in the adjusted EBITDA
margin to 20.2 percent in the second quarter of 2007 reflects the
strict cost management measures implemented by LHS. Altogether, the
adjusted EBITDA margin continued to improve throughout the first six
months of 2007 and amounts to 19.5 percent for the entire period. *
Adjusted profit that was achieved in the accounting period under
review doubled from EUR 1.7 million in the second quarter of the
previous business year to EUR 3.5 million. Concerning the first half
of 2007, adjusted profit was up by 219.5 percent and rose to EUR 7.2
million. * In the second quarter of 2007, adjusted earnings per share
amounted to EUR 0.25 (basic) and EUR 0.24 (diluted) respectively.
Accordingly, adjusted earnings per share amounted to EUR 0.51 (basic)
and EUR 0.49 (diluted) in the first half of 2007. * Because of the
positive business development and financial situation the free cash
flow increased from EUR 1,4 million in the first half of 2006 to EUR
8.6 million in the first half of 2007.

On Course for Continued Growth The operational business of LHS, too,
featured quite a number of highlights and milestones in the second
quarter of 2007. Major measures and events, which will contribute to
the sustained growth of the company, include: * In June 2007, LHS
received the "2007 Stratecast Global Investment of R&D Resources to
Address Core Billing Needs Award" of Frost & Sullivan's Stratecast
Research Group. Frost & Sullivan thus acknowledged the considerable
R&D investments made by LHS for many years. * Overall the contracts
for three migration projects were signed. The number of projects
implementing the new BSCS iX Release 2, which was launched only in
October 2006, now amounts to 11 already. * In the second quarter of
2007, LHS created 42 new jobs (19 jobs in the Frankfurt headquarters,
11 jobs in Sao Paulo, 6 jobs in Kuala Lumpur, and 6 jobs in Dubai).
On 30 June 2007, LHS had a permanent staff of 590 employees all over
the world.

Positive Development and Outlook The positive development of LHS
Aktiengesellschaft continued unabated also in the second quarter of
2007. The increase in sales revenues and earnings underlines and
confirms the company's strategic focus on sustained growth. With
respect to the entire 2007 fiscal year, LHS Aktiengesellschaft now
expects slightly higher revenues amounting to approximately EUR 95
million - compared to the figure of EUR 90 to 93 million announced at
the end of the first quarter of 2007. The adjusted EBITDA margin is
expected to amount to about 20 to 21 percent. For the third quarter
2007 LHS expects revenues of about EUR 24 to 25 million with an
adjusted EBITDA margin of 20 percent. "The excellent results achieved
by LHS in the second quarter of 2007 are, once again, the outcome of
our teams efficiently networking all over the world. On behalf of the
entire board, I would like to thank all employees of our
international locations and the Frankfurt headquarters for their
commitment and dedication. Together with our partners, we will
continue to work dedicatedly on realizing our targets", says Wolfgang
Kroh, Chief Executve Officer at LHS.

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

4,710 characters (with 55 characters per line on the average).

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, won the IIR World Billing Awards for its "Overall Best
Contribution to Billing" in London in 2005 and 2006 as well as the
"Stratecast Global Investment of R&D Resources to Address Core
Billing Needs Award" by Frost & Sullivan in 2007. 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 23.07.2007 07:00:00
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ots Originaltext: LHS Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Press contact:

LHS
Oliver Madsen
Investor Relations Officer
Herriotstrasse 1
60528 Frankfurt am Main
Germany
Phone: +49 (0)69-2383 3264
Fax: +49 (0)69-2383 5710
E-Mail: oliver.madsen@lhsgroup.com

Commercial Register: Amtsgericht Frankfurt/Main - Registration Number HRA 42727
Personally Liable Partner: LHS Management GmbH - Registration Number HRB 75504
Amtsgericht Frankfurt/Main
Managing Directors: Wolfgang Kroh, Axel Barta, Dr. Jens Troetscher

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