SOURCE: Kamakura Corporation

October 12, 2005 20:02 ET

Kamakura and Xinhua Finance Ally for Chinese Financial Information Service

HONOLULU, HI -- (MARKET WIRE) -- October 12, 2005 -- Kamakura Corporation and Xinhua Finance today announced that the two companies would join forces to provide advanced market risk and credit risk information to the Xinhua Finance client base in China and in Chinese-speaking Asia. Kamakura's enterprise wide risk management system Kamakura Risk Manager and its existing English-language Kamakura Risk Information Services will be adapted for the Chinese market as part of the strategic alliance between the two companies. The new strategic alliance will provide estimated default probabilities and default correlations for a wide range of public and private entities in the Chinese market. It will also provide advanced market risk analytics for a wide range of instruments traded in China's financial markets.

"The Chinese financial markets are growing rapidly in depth, complexity and transparency. Our strategic alliance with Kamakura is an important step forward in each of these three dimensions," commented Fredy Bush, Chief Executive Officer of Xinhua Finance. "Kamakura's worldwide reputation in analytical finance, combined with its long experience in Asia, makes Kamakura the obvious choice for a strategic alliance partner."

"Xinhua Finance has an unparalleled reservoir of financial information on public and private companies in China. They also have an electronic delivery system for this financial information that is unique in the Chinese market," said Warren Sherman, Kamakura President and Chief Operating Officer. "The combination of Kamakura's financial analytics and the Xinhua Finance data and delivery systems allows us to help create value for the full range of Xinhua Finance clients both inside and outside of China."

Xinhua Finance and Kamakura announced that the companies expect the first product of the strategic alliance to be delivered in 2006. Under terms of the strategic alliance, Xinhua Finance will invest an undisclosed amount of capital in the strategic alliance and Kamakura will contribute a perpetual license for its Kamakura Risk Manager enterprise-wide risk management software package. Kamakura will also provide access to key Kamakura managers like research director Dr. Robert A. Jarrow, CEO and founder Dr. Donald R. van Deventer, and liquidity and asset and liability management expert Leonard Matz, Managing Director.

About Kamakura Corporation

Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura has been a provider of daily default probabilities and default correlations for listed companies since November, 2002. Kamakura launched its business mortality model for unlisted companies in January 2004. Kamakura is also the first company in the world to develop and install a fully integrated credit risk, market risk, asset and liability management, and transfer pricing software system. Kamakura has clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in the United States, Canada, Germany, Switzerland, the United Kingdom, Australia, the Middle East, Africa, Japan, China, Korea and many other countries in Asia.

Kamakura's research effort is led by Professor Robert Jarrow, who was named Financial Engineer of the Year in 1997 by the International Association of Financial Engineers. Professor Jarrow and Dr. van Deventer were both named to the 50 member RISK Hall of Fame in December 2002. Kamakura management has published twenty-one books and more than 100 publications on credit risk, market risk, and asset and liability management. Kamakura has worldwide distribution alliances with IPS-Sendero ( and Unisys (, making Kamakura products available in almost every major city around the globe.

For more information contact

Kamakura Corporation
2800 Woodlawn Drive, Suite 138, Honolulu, Hawaii  96822
Telephone: 1-808-539-3830
Facsimile: 1-808-539-3748
Web site:

Xinhua Finance
3905-3909 Tower 1 Grand Gateway
1 Hongqiao Lu, Shanghai 200030, China

Telephone: (86) 21 6113 5900
Facsimile:  (86) 21 6448 4955
Web site:

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