LOM Holdings Announces Intent to Contest SEC Charges Arising From 2003 Transactions

This is the press release they issued in response to the SEC allegations:

Hamilton, Bermuda, December 20, 2007 - LOM (Holdings) Limited (Bermuda Stock Exchange: LOM BH) announced today that it intends to vigorously contest charges filed by the United States Securities and Exchange Commission (“SEC”) against LOM, several of its subsidiaries, and its President, Scott Lines (collectively, “LOM”).

“The complaint filed by the SEC presents a disturbingly distorted portrayal of a bona fide financing transaction in which LOM participated nearly five years ago,” said Malcolm Moseley, CFO of LOM. ““We are deeply frustrated by the SEC’s action today, and look forward to having an opportunity, after nearly five years of investigation, to challenge the SEC’s allegations and demonstrate that LOM and its agents operated at all times in the best interests of our clients. LOM welcomes the opportunity at long last to be able to present its side of the story in an adversary proceeding before a neutral judge.”

The SEC has alleged that LOM, a Bermuda-based broker-dealer, violated U.S. securities laws in connection with trading, in January and February 2003, of shares of Sedona Software Solutions, Inc. and, in 2002 and 2003, of shares of SHEP Technologies, Inc. The SEC’s complaint alleges that LOM attempted to manipulate the prices of Sedona and SHEP Technologies stock, and thereby violated various provisions of the securities laws, including Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. Among other things, the complaint seeks an injunction against future violations of the securities laws, as well as a penny stock bar.

“The SEC’s allegations relate to LOM’s bona fide efforts to arrange financing for the acquisition and operation of several mining properties in Canada and Central America in February 2003,” said Moseley. “Today’s charges reflect the SEC’s fundamental misunderstanding of the transactions at issue. After the SEC suspended trading of Sedona stock, these same mining assets were acquired by various Canadian public companies, which successfully operated them. The SEC’s allegations relating to trading in SHEP Technologies likewise concern LOM’s legitimate business dealings.” LOM’s primary regulator – the Bermuda Monetary Authority (“BMA”) – has thoroughly investigated the conduct described in the SEC’s complaint, and concluded its investigation in 2005 on an entirely different basis, pursuant to which LOM agreed to make managerial changes, improve its internal controls, and committed to further enhance its compliance regime and management structure.

“LOM does not expect that the filing of these charges will have any bearing on our operations, our clients, or the viability of the firm. We are hopeful that this development marks the beginning of the conclusion of a matter that should have been concluded long ago,” said Moseley. LOM will, in its vigorous defense of this matter, prove that not only are the SEC’s charges legally and factually unsound, but that they also are part of a longstanding pattern of harassment against LOM and its officers. LOM will show that the SEC has acted inappropriately by failing to correct a number of materially false statements made in court filings, despite being provided with evidence to the contrary by LOM.

“It is unthinkable that the SEC would ever treat a U.S.-based broker-dealer the way that it has treated LOM. The SEC has targeted LOM despite our efforts to uphold the highest standards of responsible corporate citizenship and compliance,” said Moseley. “LOM welcomes the opportunity to clear its name and to defend itself against the SEC’s unmeritorious claims.”

About LOM

LOM is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda, Bahamas and Grand Cayman. In business for 15 years, LOM today has over $1 billion in client assets under administration and provides brokerage, asset management, and corporate finance services to its primarily high net-worth individual and institutional customers in over 75 countries around the world. The parent company, LOM (Holdings) Limited, is publicly listed on the Bermuda Stock Exchange (symbol LOM BH). The consolidated group is debt-free and has shareholder's equity of over $21 million.