LPHI Distributes Life Settlement Trust Proceeds Through Special Cash Dividend of $0.04

Life Partners Holdings, Inc. LPHI, parent company of Life Partners, Inc., announces today's payment of a special cash dividend of $0.04 per share to shareholders of record as of January 31, 2011. Authorization of this special cash dividend was previously announced on January 6, 2011. LPHI currently owns approximately 20% of the Life Settlement Trust which holds a portfolio of 266 life settlements with a face value of $689 million. This special dividend is based on the accumulated payouts from the Life Settlement Trust and is in addition to the company's regular quarterly dividends.