New Entrants in German Telecommunications Market Select for LHS.

ATLANTA/FRANKFURT--(BUSINESS WIRE)--June 24, 1999--

ETH and Tangens Will Use BSCS Software for Billing and

Customer Care

LHS Group Inc., (Nasdaq: LHSG)(Neuer Markt: LHI) today announced that two new entrants into the highly competitive German telecommunications market, European Telecommunications Holding E.T.H. AG, Frankfurt, and Tangens GmbH, Potsdam, have selected LHS, to provide their customer care and billing system.

"The two projects underline the flexibility and adaptability of our BSCS software. BSCS enables truly convergent billing, covering everything from wireline, to mobile, to Internet and intercarrier services. Therefore, it is suited to a wide variety of environments and users, be it a carrier, reseller or service provider," commented Wolfgang Kroh, senior vice president LHS EMEA (Europe, Middle East, Africa). Both projects will be implemented in cooperation with one of LHS' global integration partners.

E.T.H. is active both in the international carrier-to-carrier market and in selected retail markets. In the carrier market, the company makes telecommunications infrastructures available to their customers, allowing in particular new market entrants to deploy high technology infrastructures without being burdened by previous investments.

Their networks are based on packet-switched platforms such as Asynchronous Transfer Mode (ATM) and Internet Protocol (IP). The focus in the retail markets is on private customers in European countries generating high international traffic volumes.

Tangens (British retail giant Kingfisher Group is majority shareholder) will start operations as a service provider in July of this year. According to a recent Handelsblatt report, its goal to move up to second place behind Germany's leading telecommunications service provider Debitel, will be based primarily on the branch network of two German retail electronics chains: Pro-Markt (Kingfisher holding) and Wegert.

Tangens will market the services of mobile operators T-Mobil, Mannesmann Mobilfunk, E-Plus and Viag Intercom, as well as fixed line operators Star Telecom and First Telecom.

About LHS

LHS is a leading global provider of convergent client/server customer care, billing and customer acquisition software and services to the telecommunications industry. Its over 140 systems are licensed to customers in more than 70 countries, operating in 13 languages. In addition to its Atlanta headquarters, LHS has major offices in Frankfurt, Germany; Kuala Lumpur, Malaysia; Boston and Miami, USA; and Zurich, Switzerland. LHS is listed with NASDAQ (LHSG) and on the Frankfurt Neuer Markt Exchange (LHI). For more information, visit LHS' web site at www.lhsgroup.com.