Life Partners Predicts Record Earnings

WACO, Texas--(Business Wire)--
Life Partners Holdings, Inc. (NasdaqGS: LPHI), parent company of Life Partners,
Inc.,predicted another quarter of record earnings as it announced its
preliminary financial results for its first fiscal quarter ended May 31, 2009.
Life Partners expects to report first quarter earnings of approximately $0.53
per share compared with earnings of $0.42 per share last year. Results for the
quarter are expected to show a 26% increase in earnings over the same period
last year. All earnings per share calculations are adjusted to account for the
5-for-4 stock split in February 2009.

For its first quarter ended May 31, 2009, Life Partners expects to report $27.4
million in revenues, a 12% increase over the $24.4 million it reported for the
first quarter of last year.

Among the key financial results which LPHI expects to report are:

FIRST FISCAL QUARTER

Ended 5-31-2009 Ended 5-31-2008 % of Change
Revenues $27.4 million $24.4 million 12% increase
Income from Operations $11.6 million $ 9.7 million 20% increase
Pre-tax Income $12.3 million $ 9.8 million 26% increase
Net Income $ 7.8 million $ 6.2 million 26% increase
Earnings Per Share $ .53 per share $ .42 per share 26% increase

BALANCE SHEET COMPARISON

As of 5-31-2009 As of 5-31-2008 % of Change
Current Assets $30.1 million $32.8 million 8% decrease
Current Liabilities $14.2 million $12.1 million 17% increase
Current Ratio 2.1 : 1 2.7 : 1
Working Capital $15.9 million $20.7 million 23% decrease
Total Assets $61.8 million $40.5 million 53% increase
Total Liabilities $14.2 million $12.9 million 10% increase
Shareholder Equity $47.6 million $27.6 million 73% increase

Brian Pardo, Chief Executive Officer, said, "We are continuing to see growth
within the life settlement industry and, as a leader in this industry, we are
continuing to grow as well. As the financial markets remain turbulent, we expect
the interest in life settlements to continue. This is because the gains from
life settlements come from the inherent value in these policies and not from
market appreciation. Smart investors recognize that life settlements are not
susceptible to market fluctuations and are using them to diversify their
portfolios from financial market risk."

The Company plans to report its earnings in its Form 10-Q to be filed with the
Securities and Exchange Commission on or about July 10, 2009.

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
completed over 91,000 transactions for its worldwide client base approaching
22,000 high net worth individuals and institutions in connection with the
purchase of over 6,000 policies totaling over $1.9 billion in face value.

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, the growth
in the life settlement market and our growth within that market, 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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LPHI-G

Life Partners Holdings, Inc.
Shareholder Relations, 254-751-7797
info@LPHI.com
Visit our website at: www.lphi.com

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