SOURCE: Kamakura Corporation

March 23, 2005 09:00 ET

AAA-Rated Credit Protection Provider Athilon Signs for Kamakura Default Probability and Correlation Service

HONOLULU, HI -- (MARKET WIRE) -- March 23, 2005 -- Kamakura Corporation announced today that newly formed credit protection provider Athilon has signed a contract for the Kamakura Risk Information Services default probability and correlation service. Athilon is rated Aaa by Moody's Investors Service and AAA by Standard & Poor's.

"Many market participants are using credit technology that is more than three decades old," said Marc Rakotomalala, Executive Vice President and Chief Risk Officer of Athilon. "In our business we believe that maximum risk adjusted shareholder value creation comes from optimal capital allocation, which is only possible through state of the art credit modeling with multiple models, complete transparency, and comprehensive model test results. Kamakura in our mind stands alone in each of these dimensions."

"Athilon is a leader in bringing modern credit technology to the credit enhanced financial products market," said Warren Sherman, Kamakura President and Chief Operating Officer. "We are honored to assist Athilon in what we see as a great opportunity for its shareholders. We believe progressive firms like Athilon will earn superior risk-adjusted returns from the insights provided by credit models with common macro-factors driving correlated defaults."

Kamakura is offering free trials of its KRIS default probability and correlation service to qualified institutions. For more information on Kamakura's free trial offer please contact Kamakura at More information can also be found on the Kamakura Corporation web site and in Advanced Financial Risk Management (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai, and Mark Mesler (available on Advanced Financial Risk Management was recently named "best finance book of 2004" on

About Athilon

Athilon Asset Acceptance Corp. ("A3", is one of the first companies to offer credit protection to investment banks, commercial banks, insurance companies, corporations and other holders of multi-obligor portfolios in the form of credit swaps on the senior and super-senior tranches of such portfolios. The obligations of A3 are unconditionally guaranteed by its corporate parent, Athilon Capital Corp. ("Athilon Capital").

Both Athilon Capital and A3 (collectively, "Athilon") have received "Triple A" counterparty ratings from both Moody's and Standard & Poor's, the highest ratings assigned by such rating agencies.

Athilon has developed a proprietary capital model and credit scoring approach which utilizes multi-disciplinary and highly sophisticated techniques to assess risk and monitor performance, and has licensed a highly reputable and robust software system for all middle and back office functions. Athilon's management team has significant experience in structured credit products from an underwriting perspective as well as a dealer in synthetic CDO's.

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 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 system. Kamakura has clients ranging in size from $3 billion in assets to $1 trillion in assets. Kamakura's risk management software is currently used in the United States, Germany, Canada, 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 world-wide 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:

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