Life Partners Reports First Quarter Results

Life Partners Holdings, Inc. (Nasdaq: LPHI) today announced net income of $470,992, or $0.05 per share, for the three months ended March 31, 2006 compared to $469,105 or $0.05 per share, reported for the same period last year. Revenues increased by 25% over the same period last year while total business volume, as measured in policy face values transacted, increased by 59% over last year to almost $29 million.

Net income was substantially increased due to a change in accounting principle which was approved by the Financial Accounting Standards Board (“FASB”) earlier this year. The change permits Life Partners to record the life settlements that it purchases for investment at their purchase price rather than writing the settlements down to the cash surrender value of the underlying policies. Life Partners was instrumental in bringing about this change in accounting treatment by the FASB.

Brian Pardo, Chief Executive Officer, said, “Our results this quarter are a combination of our income from operations as well as the application of the newly adopted accounting treatment for the purchase of policies for investment purposes. We expect this accounting change will have a beneficial effect both on our company and on our institutional clients. As more institutional investors become aware of the non-market correlated returns generated by this asset class, we expect to serve more of those types of investors which should result in sustained growth over the long term.”

Life Partners is the world’s the oldest and one of the most active companies in the United States engaged in the secondary market for life insurance settlements, dealing in both viatical settlements and senior life settlements. Since its incorporation in 1991, Life Partners has generated a total business volume of over $580 million in face value of policies for its worldwide client base of approximately 14,000 high net worth individuals and institutions.

Safe Harbor - This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The statements in this news release that are not historical statements, including statements regarding future financial performance, the market for our services, projected total business volume, the value of our new contract signings, backlog and business pipeline are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see our most recent Form 10-K. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Contacts
Life Partners Holdings, Inc., Waco
Shareholder Relations, 254-751-7797
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www.lphi.com