Press Release
Kamakura Releases KRIS-CDO for Web-Based Collateralized Debt Obligation Analysis
HONOLULU, April 24, 2007: Kamakura Corporation announced today the introduction of its on-line collateralized debt obligation (CDO) analysis service, KRIS-CDO. The KRIS-CDO is seamlessly integrated with the existing Kamakura Risk Information Services (KRIS) default probability and correlation service, launched by Kamakura in 2002. The web-based KRIS-CDO service incorporates the risk analytics of the world's most advanced enterprise risk software, Kamakura Risk Manager (KRM), with the KRIS default probabilities to produce the industry's first CDO analysis tool that allows the user to choose from multiple default models and conduct a rich multi-period simulation. The default models behind the KRIS-CDO analysis are now used throughout North America, Europe, and Asia and they have been reviewed intensely with financial regulators in 12 countries.
"KRIS-CDO provides CDO investors and structurers with a powerful and easy-to-use tool that provides real insight into the risks faced in the CDO market," said Warren Sherman, Kamakura President and Chief Operating Officer. "Our clients have told us clearly what features are critical to them. They want a seamless integration between default probabilities and analysis. They want to change default models with a mouse-click. They want a more sophisticated analysis of default correlation than one which assumes all pairs of companies have the same default correlation. They want a rich multi-period calculation which recognizes that defaults are spread over time, not bunched at the beginning or end of a single period analysis. Finally, they want control over the degree to which the business cycle and macroeconomic factors move default probabilities up and down over the credit cycle. That's what KRIS-CDO delivers."
The KRIS-CDO service is currently focused on synthetic CDOs. For more complex CDO structures such as those with complex collateral, Kamakura has offered CDO analytics in its enterprise risk management system, KRM, since 2003. The KRIS-CDO service offers four choices for default modeling: default probabilities randomly sampled from history, default probabilities consistent with the Merton model, default probabilities derived using the "reduced form" approach, and special macro economic factor-linked default probabilities. Scenario analysis and multi-period simulations are standard. Users have access to the Kamakura's multiple probability models and term structures of default from within KRIS-CDO.
For more information on KRIS-CDO, please contact Warren Sherman at (1-201-600-7542).

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 160 clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in 23 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 Fiserv and Unisys, making Kamakura products available in almost every major city around the globe.

For more information contact

Kamakura Corporation
2222 Kalakaua Avenue, 14th Floor, Honolulu, Hawaii 96815
Telephone: 1-808-791-9888
Facsimile: 1-808-791-9898
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