Life Partners Holdings Announces Securities and Exchange Commission Sanctioned for Violation of Federal Rules of Civil

  Life Partners Holdings Announces Securities and Exchange Commission
  Sanctioned for Violation of Federal Rules of Civil Procedure

Business Wire

WACO, Texas -- August 20, 2012

Life Partners Holdings, Inc. (Nasdaq GS: LPHI), announced today that United
States District Court for the Western District of Texas on Friday issued an
order sanctioning the Securities and Exchange Commission for violating the
Federal Rules of Civil Procedure and ordering that federal agency pay Life
Partners Holdings $5,000 in attorney’s fees.

The order, which was the result of a motion for sanctions filed by Life
Partners, finds that the Securities and Exchange Commission violated the
Federal Rules of Civil Procedure by taking the deposition of a non-party
witness without proper notice to Defendants, without conference with opposing
counsel and without asking leave from the Court.

In its seven page order, the Court stated that “administrative agencies are
unquestionably bound by the rules when they are parties in civil actions.” The
Securities and Exchange Commission filed a civil action against Life Partners
Holdings, Inc. and certain of its officers in January of this year. The
company’s wholly owned subsidiary, Life Partners, Inc., was not named in the
civil action.

The company has previously stated it believes the action is without merit and
will vigorously defend itself and its officers.

Visit our website at: www.lphi.com.

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 the basis, outcome or duration of the legal proceeding, 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.

LPHI-G

Contact:

Life Partners Holdings, Inc.
Shareholder Relations, 254-751-7797
info@lifepartnersinc.com