Life Partners Reports Second Quarter and Six Months Results

Life Partners Holdings, Inc. (Nasdaq: LPHI) today announced net income of $223,743, or $0.02 per share, for the three months ended August 31, 2006 compared to $247,521 or $0.03 per share, reported for the same period last year. Revenues increased by 35% over the same period last year while total business volume, as measured in policy face values transacted, increased by 100% over last year to almost $29 million. For the six months ended August 31, 2006, the company reported net income of $694,735 or $0.04 per share compared to $716,626 or $0.08 per share during the period last year.

Net income for both the quarter and the six months would have been substantially higher during the period, but for a nonrecurring impairment charge of $673,147.
Brian Pardo, Chief Executive Officer, said, “While our net income during the three and six months was diminished by a nonrecurring impairment charge, we are very pleased with our revenue growth as demonstrated by the 71% increase in average revenue per settlement this quarter. Now that the charge has been recognized, we expect our net income to reflect those increases during the remainder of this fiscal year.”

Life Partners is the world’s oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called life settlements. Since its incorporation in 1991, Life Partners has generated a total business volume of almost $640 million in face value of policies for its worldwide client base of approximately 15,000 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.

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