Press Release - January 25, 2006

Lightbridge Announces Fourth Quarter and Year End 2005 Financial Results and Restatement Related to Deferred Taxes

Revenue and EPS Exceeds Guidance for the Fourth Quarter; Record Revenue for Authorize.Net of $12.8M — Up 29% Over Prior Year, 9% Sequentially

BURLINGTON, MA, Jan 25, 2006 (MARKET WIRE via COMTEX News Network) — Lightbridge, Inc. (NASDAQ: LTBG), a leading e-commerce, analytics and decisioning company, today reported financial results for the fourth quarter and full year 2005.

Financial Review

Revenue from continuing operations for the fourth quarter of 2005 was $27.3 million versus $29.2 million for the fourth quarter of 2004. This represents a 6% decrease compared to the prior year due primarily to lower revenue from Telecom Decisioning Services (TDS) clients. Authorize.Net revenue for the fourth quarter of 2005 was a record $12.8 million, an increase of 29% over the $9.9 million reported in the fourth quarter of 2004.

The Company reported a net income from continuing operations of $3.9 million, or $0.14 per diluted share during the fourth quarter of 2005, versus a restated net loss of $8.0 million, or ($0.30) per diluted share, for the comparable period of 2004. Results for the fourth quarter of 2004 included herein have been restated as described in the discussion below.

For the full year ended December 31, 2005, the Company reported revenue from continuing operations of $108.3 million, a decrease of 6% compared to $115.1 million for the year ended December 31, 2004, due primarily to lower revenue from TDS and partially offset by growth in the payment processing business. Authorize.Net revenue increased 29% for the full year 2005 to a record $45.3 million compared to $35.2 million for the full year of 2004, which includes one quarter as reported by InfoSpace, Inc., its former owner. Lightbridge acquired Authorize.Net on March 31, 2004. The Company reported a net income from continuing operations of $8.6 million, or $0.32 per diluted share for the full year of 2005 versus a restated net loss of $7.6 million, or ($0.29) per diluted share for the full year of 2004.

Business Perspective

"Lightbridge delivered an outstanding quarter, with very positive metrics from Authorize.Net and a strong performance in our Telecom Decisioning Services (TDS) business," said Bob Donahue, president and chief executive officer of Lightbridge, Inc. "Our strategic vision, strong client and reseller partnerships, and unwavering focus on quality service and customer satisfaction helped us to achieve a strong finish to a solid 2005."

Mr. Donahue continued, "2005 was an exceptional year for our Authorize.Net business; enjoying strong growth and extending its reach into the Card Present world through the introduction of mobile commerce and IP enabled POS platforms and applications. We benefited from the reputation we've built with the small to medium sized merchant as well as the exploding growth in the e-commerce industry."

"We believe the outlook for Lightbridge in 2006 is excellent," added Mr. Donahue. "We made significant changes to the structure of our Company in 2005 by divesting our Intelligent Network business and closing the Instant Conferencing business. We returned our business to profitability in 2005 with a strong balance sheet, and with the management team in place to bring the Company to the next level and deliver shareholder value."

Authorize.Net Metrics

Added 13,647 new merchants in the fourth quarter of 2005 with net new additions totaling nearly 5,900
Active Merchants as of December 31, 2005 at a record 136,000, up 20% over the prior year
Number of transactions processed in the fourth quarter increased to a record 72.1 million, a 28% increase over the comparable quarter last year
Processed a record $6.8 billion of merchant transactions in the fourth quarter, up 37% compared to the comparable period in 2004

Select Recent Highlights

Authorize.Net validated its compliance with VISA's Cardholder Information Security Program (CISP) for third straight year
Announced the decision to retain the TDS business after exploring strategic alternatives
Announced a restructuring in January 2006, primarily affecting the TDS business

Cash and Short-term Investments

At December 31, 2005, Lightbridge's cash and short-term investments position was $84.8 million, compared to $51.6 million at December 31, 2004. This includes funds due to merchants of $7.1 million at year end 2005 compared to $5.6 million at the end of 2004.

Restatement Attributable to Tax Expense and Deferred Taxes

On January 25, 2006, the Company determined that previously issued financial statements for the three months ended March 31, 2005, June 30, 2005 and September 30, 2005 and for the three months and year ended December 31, 2004 should no longer be relied upon and should be restated in order to record additional tax expense associated with the deferred tax liability related to goodwill and trademarks which resulted from the acquisition of Authorize.Net in 2004. For more information on the restatement, please refer to our Current Report on Form 8-K filed today. These non-cash adjustments to income tax expense increase the net loss for the quarter and year ended December 31, 2004 by $1.3 million or $0.05 per diluted share and for the quarter ended March 31, 2005 by $408,000 or $0.01 per diluted share. The non-cash adjustments also decreased the earnings per share in the quarters June 30, 2005 by $408,000 or $0.02 per diluted share and the quarter ended September 30, 2005 by $500,000 or $0.01 per diluted share. The additional tax expense will not result in increased cash tax liability for the Company. Also, these adjustments have no effect on revenue, net income before taxes or cash from operating activities. For more information on the adjustments for deferred taxes, please refer to the Table of Adjustments below. The Company plans to amend its quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2005, June 30, 2005 and September 30, 2005 and its Annual Report on Form 10-K for the year ended December 31, 2004.

Company Performance versus Previous Guidance - Fourth Quarter 2004

Lightbridge's revenue from continuing operations of $27.3 million was above the Company's estimates released on October 26, 2005 of $25.5 to $27.0 million for the fourth quarter of 2005, and in line with the preliminary results released January 13, 2006 of between $27.0 to $27.5 million. The Company's previous guidance included revenue expectations for Authorize.Net of $12.0 to $12.5 million with actual results for this business reported at $12.8 million.

Similarly, Lightbridge's earnings per share from continuing operations of $0.14 is greater than its previously issued guidance of earnings per share in the range of $0.06 to $0.10 for the fourth quarter of 2005. Earnings per share results were in line with the preliminary results issued January 13, 2006 of $0.12 to $0.16.

Company Guidance - First Quarter 2006

Lightbridge estimates total revenue will be in the range of $25.5 to $26.5 million for the first quarter 2006 with Authorize.Net expected to contribute in the range of $13.0 to $13.6 million. Including restructuring charges previously announced and estimated share based compensation expense of $300,000 to $1.1 million, earnings per share is expected to be between a loss of ($0.01) and an income of $0.07 for the first quarter of 2006. The Company's guidance is as of the date of this release.

Conference Call Information

Lightbridge will conduct a conference call today, Wednesday, January 25, 2006 at 5:00 pm (ET) to discuss the information contained in this news release. The Company invites the public to join by dialing 1-888-802-8576. Investors wishing to listen to a webcast of the conference call should link to the "Investor Relations" section of www.lightbridge.com at least 15 minutes prior to the broadcast and follow the instructions provided to assure the necessary audio applications are downloaded and installed. The call will be available online at the Company's website for two weeks. The replay will be available one hour after the call and can be accessed by dialing 877-519-4471. The passcode number is 6898851. The replay will be available until February 8, 2006.

About Lightbridge

Lightbridge, Inc. (NASDAQ: LTBG) is a leading e-commerce, decisioning and analytics company that businesses trust to manage customer transactions. Lightbridge adds value to fraud screening, credit qualification and payment authorization services. Lightbridge solutions leverage intelligent automated systems and human expertise, delivered primarily through the efficiencies and cost savings of an outsourced business model. Businesses use Lightbridge to make smarter decisions, deliver better services, provide secure payments, reduce costs and enhance the lifetime value of their customers. For more information, visit www.lightbridge.com.

Note to Editors: LIGHTBRIDGE, the Lightbridge logo, and AUTHORIZE.NET are registered trademarks of Lightbridge Inc. All other trademarks and registered trademarks are the properties of their respective owners.

Forward-looking Statements

Certain statements in this news release that are not historical facts, including, without limitation, those relating to the Company's restatement, first quarter 2006 guidance and outlook for 2006 are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, (i) dependence on a limited number of clients, (ii) the Company's revenue concentration in the wireless telecommunications business and the declining subscriber growth rate in that business, (iii) continuing rapid change in the telecommunications industry, payment processing industry, and other markets in which the Company does business that may affect both the Company and its clients, (iv) current and future economic conditions generally and particularly in the telecommunications and payment processing industry, (v) uncertainties about the Company's ability to execute on, and about the impact on the Company's business and operations of, its objectives, plans or strategies as a result of potential technological, market or competitive factors, (vi) the impact of restatements and restructuring and other charges on the Company's business and operations, (vii) integration, employee retention, recognition of cost and other benefits and revenue synergies, and other risks associated with acquisitions, (viii) the industry risks associated with Authorize.Net's business and operations including, without limitation, illegal or improper uses of Authorize.Net's payment system, unauthorized intrusions and attacks on Authorize.Net's payment system that may impair the operation of its payment systems, changes in or failures to comply with credit card association rules, governmental regulation and the application of existing laws to Authorize.Net's business and dependence on relationships with third party payment processors, (ix) the factors disclosed in the Company's filings with the U.S. Securities and Exchange Commission including, without limitation, its 2004 Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. The Company undertakes no obligation to update any forward-looking statements.

Contacts:
Lynn Ricci
Investor & Media Relations
Lightbridge, Inc.
781/359-4854

SOURCE: Lightbridge