LEM. Company update

Dear investors

End of 2007 is approaching which let us rethink our company strategy as we sit on too much cash and don't plan to use banking services intensively…We have to accuse you investors for having brought us into such an uncomfortable situation – but we don’t complain and we haven’t planned yet our holidays to the big Island …;-) …just more work.

LEM generates regular profits (dividend = 0.045 $L/share) and its NTA (3.4 $L/share) is growing. But to apply some Kanzai management doesn’t hurt… Strategical changes we see in six directions for 2008: Use of capital, real estate, trading, RL projects, buy back program which should bring LEM to a new development level plus put an eye of growth of expenditures.

The six directions in more details:

(a) Financing SL projects: We still have two IPO waiting for their approval. One is a derivative with PUT character (LEM Knock-In on WSEIndex (LPI)) and the second a so called IPO booster (LPB). LEM strongly believes in LPI which is a good security tool in relation to volatile markets. LPB on the other hand is an important initiative to bring innovative IPO faster successfully on the market. LEM will allocate assets worth 2 million $L into it which should be a strong argument to bring this IPO through the approval phase.
(b) Real estate: LEM sits on too much cash right now. Real estate is not our core business but can be an additional market we want to explore. LEM already possesses major stakes in DDE, RDX, HOT which basically are real estate companies but these commitments are participations only. LEM continues to invest into such business as long as the ROI and long term perspectives are ok for us. However, we also would like to start investing in own property. A co-operation with an experiences land owner/manager is in discussions others may follow. At the moment roughly 1.2 million $L is directly invested into real estate over listed companies which is an equivalent of 15% of all assets LEM owns actually. We see this portion rising to 25% next year.
(c) Trading: Trading was successfully till now, but it is limited though personal input staff can put into it. LEM will keep trading in on a healthy and profitable level but can hardly increase it any more. Trading with 10’000 $L is one thing with 7 million something else…lol
(d) Real life projects: We started to do some work in SL for RL companies which already resulted in returns, however, this is a bit tricky also from a legal point of view (VAT, etc.).. LEM thinks SL is SL and RL is RL. However, there are ways to bring those worlds together. 3D-Web applications, exploration platform, extended marketing environment are just some key words how SL could be used for RL. LEM is working already on its new web and will try to consider such aspects. In 2008 we hope to reserve more time to such business development idea and develop new ones. We also strongly believe in the open source perspectives of SL.
(e) LEM share price: We got the approval from WSE to trade our own shares. LEM is interested to see its share price oscillating in a certain range. In first order we let the market define the share price but will intervene if we think the share price is too low or too high. If too low we will purchase shares and possibly destroy them over buy back option. In the latter case we will bring own shares on the market but keep a majority of 50.1%.
(f) Expenditures: Enough is enough

LEM thanks you all for all your support through 2007. Without our customers we couldn’t have achieved what we have achieved and we strongly hope that we can continue doing business together in 2008 as we did in 2007. Let me wish in the name of LEM a merry Christmas and only the best for 2008

Greetz

Casper Trebuchet

LEM, CEO
House if derivatives (LFB, LWI, LHH)

http://lemurinvest.blogspot.com