SOURCE: Kamakura Corporation

October 10, 2006 10:00 ET

Kamakura Releases Multi-Threaded KRM Version 6.2 for Credit Risk, ALM and Market Risk Management

Basel II and Compound Credit Derivatives Features Expanded

HONOLULU, HI -- (MARKET WIRE) -- October 10, 2006 -- Kamakura Corporation announced that Version 6.2 of its industry leading integrated credit risk, asset and liability management and market risk software package Kamakura Risk Manager ("KRM") has been released to clients. Version 6.2 offers dramatic speed enhancements with new multithreading capabilities for multiperiod simulation of credit risk, interest rate risk, market risk, and both regulatory and economic capital calculations. KRM, first released for commercial use in 1993, comes with a fully integrated suite of web-based applications including the extensive web-based reporting module KRM-rp, Kamakura's interactive credit limits module KRM-lm, and its loan pricing and capital allocation module KRM-lp. KRM is also extensively linked with Kamakura's KRIS default probability and correlation service KRIS. KRM and KRIS are currently used by clients in 21 countries around the world.

"Version 6.2 of KRM is a dramatic expansion of Kamakura's capabilities, thanks to clear and intelligent guidance by our clients from Warsaw to New York to Melbourne to Beijing," said Warren Sherman, Kamakura President and Chief Operating Officer. "KRM Version 6.2 features extremely detailed implementation of both the basic and advanced internal ratings based alternatives under the Basel II Capital Accords. Even more important, Version 6.2 significantly extends KRM's ability to handle compound credit risk embedded in parent-child corporate relationships, sovereign-corporate credit relationships, and relationships between guarantors and the underlying borrower. Finally, the increasing richness of KRM's linkages of collateral to related assets or liabilities of the firm brings a dramatic increase in insight to credit portfolio management, global balance sheet hedging, market risk and asset and liability management."

The full details of the enhancements in Version 6.2 of Kamakura Risk Manager and KRM-rp are available to Kamakura clients via the Release Notes for Version 6.2. Potential users of KRM and KRM-rp can get an overview of KRM's Basel II and integrated risk capabilities by contacting info@kamakuraco.com. Kamakura takes a completely transparent approach to risk modeling, so all mathematical formulas and analytical techniques are visible to clients and their regulators, as required by the Basel II capital accords. These formulas and analytical techniques are embedded in the on-line help files for Kamakura Risk Manager. In addition, Kamakura delivers completely independent calculations of the most complex risk analytics in KRM for an independent verification that KRM calculations are correct. This extensive test suite, which is unique in the industry, dramatically reduces the need for clients to do due diligence on the accuracy of KRM's risk analytics.

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

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 enterprise risk management system that analyzes credit risk, market risk, asset and liability management, and transfer pricing software system. Kamakura has served more than 150 clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in 21 countries, including the United States, Canada, Germany, the Netherlands, France, Switzerland, the United Kingdom, Eastern Europe, the Middle East, Africa, Australia, 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 more than 100 publications on credit risk, market risk, and asset and liability management. Kamakura has world-wide distribution alliances with IPS-Sendero (www.ips-sendero.com) and Unisys (www.unisys.com), making Kamakura products available in almost every major city around the globe.

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