LHS confirms growth expectations

Revenue increases 13 percent in Q2 2008 – EBITDA increases 23 percent

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Frankfurt am Main (euro adhoc) - LHS, one of the leading providers of
telecom billing and customer care systems across the wireless,
wireline, and IP telecom markets worldwide, today announced its
results for the second quarter of fiscal year 2008 (period ended June
30, 2008).

The audited results were prepared in accordance with In-ternational
Financial Reporting Standards (IFRS) which are binding for all
capital market companies. They include the following key figures for
the previous business quarter:

- LHS increased its revenue in the second quarter of 2008 to EUR 27.2
million. This is a growth of 13 per-cent compared to the same quarter
of the previous year. The cumulated revenue at mid-year 2008 was EUR
52.0 million compared to EUR 45.8 million at mid-year 2007,
constituting an increase of 14 per-cent.

- In the quarter under review, the adjusted EBITDA was EUR 6.0
million, which is an increase of 23 per-cent over the same period of
the previous year. By mid-year 2008, LHS achieved an adjusted EBITDA
of EUR 10.1 million, which is an increase of 13 percent over the same
period 2007.

- The earnings per share (undiluted and diluted) stood at EUR 0.22
for Q2 2008. In the same period of the previous year, the earnings
per share (undiluted and diluted) were at EUR -0.03.

- The earnings per share for the first half of 2008 (un-diluted and
diluted) stood at EUR 0.44. In the same period of the previous year,
the earnings per share (undiluted and diluted) were at EUR 0.06

- For the entire fiscal year 2008 the company expects a similar
increase in revenue as in the first half of 2008.

Highlights of the second quarter

- As in 1999, 2005 and 2006, LHS received again the "Overall - Best
Contribution to BSS" award, one of the most prestigious recognitions
in the BSS indus-try, for the fourth time in June 2008 at the IIR
Billing and Information Systems Conference in Amsterdam.

- In the second quarter of 2008, three new project con-tracts were
signed. Two of these consisted of new customers for the software
solution BSCS iX Release 2. This increases the number of
installations with BSCS iX Release 2 to 20.

- In Q2 2008, about 100 million postpaid mobile com-munications
customers were billed with BSCS solu-tions.

- In the period under review, the company created 24 new jobs. Thus,
on June 30, 2008 LHS had a total of 727 employees around the world.

Balanced growth and profitability The positive development of LHS
Aktiengesellschaft con-tinued in the second quarter of 2008. The
increase in revenues and profit confirms and supports the corporate
strategy of sustained growth. "The continuous growth from quarter to
quarter shows a balance of direct and indirect business, as well as
new and existing customers. How-ever, the higher profitability
generated in this quarter was based primarily on licensing revenues
that constitute 30 percent of the overall revenue in the period under
review," said Wolfgang Kroh, Chairman of the Management Board of LHS
Aktiengesellschaft. " We are also very proud of having regained the
`Overall - Best Contribution to BSS´ award in recognition of our
products and product devel-opment efforts, as well as having exceeded
the 100 million mark of customers billed with BSCS solutions. This
once again proves our leadership position in the postpaid billing
sector," he added.

The complete quarterly report is available at our website:
http://www.lhsgroup.com/ir-en

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About LHS LHS is one of the leading providers of telecom billing and
customer care sys-tems 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 1999, 2005, 2006 and
2008 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

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/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
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade