SOURCE: Kamakura Corporation

July 06, 2005 10:00 ET

Kamakura Reports First Corporate Credit Quality Improvement in Six Months

HONOLULU, HI -- (MARKET WIRE) -- July 6, 2005 -- Kamakura Corporation announced today that its monthly index of troubled companies in the United States dropped to 14.3% of the public company universe in June, the first decline in the index in six months. The index had been at 16.0% of the public company universe in both April and May. The Kamakura troubled company index remains well above the most recent low point of 11.1%, reached in April 2004. Kamakura classifies any company with a default probability of more than one percent as troubled.

"The Kamakura troubled company index remains at moderately high levels, indicating that we have passed the safest part of the credit cycle," said Warren Sherman, Kamakura President and Chief Operating Officer. "The number of companies with default probabilities between 1% and 5% improved to 8.4% of the universe in June from 9.6% the previous month. Companies with default probabilities between 5% and 10% also improved to 2.1% of the universe. Companies with default probabilities between 10% and 20% were down 0.2% to 1.5% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, increased 0.1% to 2.3% of the universe in June."

Kamakura is offering free trials of its international KRIS default probability service to qualified institutions. For more information on Kamakura's free trial offer please visit the Kamakura Corporation website (http://www.kamakuraco.com/KRIS_overview.htm). More information can also be found in "Advanced Financial Risk Management" (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai and Mark Mesler (available on www.amazon.com). "Advanced Financial Risk Management" was recently named "best finance book of 2004" on www.riskbook.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 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 trillion in assets. Kamakura's risk management software is currently used in the United States, Germany, Canada, the United Kingdom, Australia, the Middle East, 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 (www.ips-sendero.com) and Unisys (www.unisys.com), 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
Information: info@kamakuraco.com
Web site: www.kamakuraco.com

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