Kamakura Launches Web-based FAS 133 Risk Processing Services.

Business Editors

HONOLULU--(BUSINESS WIRE)--July 6, 2000

Honolulu-based Kamakura Corporation announced today that it has launched effectively immediately Kamakura On-Line Processing Services via the Kamakura web site www.kamakuraco.com.

The Kamakura On-line Processing Services (KOPS) facility allows clients to submit data for processing for Financial Accounting Standard 133 and other purposes; Kamakura uses the industry-leading Kamakura Risk Manager system to provide risk management output data via the web or alternative electronic formats preferred by the client. Kamakura Risk Manager is the first software system in the world with installed clients who can estimate default probabilities, perform valuation and value at risk on an entire balance sheet, and simulate and stress test net income from a single software system. KOPS clients can submit data in any electronic format. Kamakura takes full responsibility for data mapping to Kamakura Risk Manager format in order to reduce cost and speed implementation for clients. Kamakura also provides all relevant market data for the client's analysis.

The KOPS service offers default probability estimation for client business counterparties, credit -adjusted value at risk, and credit-adjusted valuation produced by the KRM-cr module. KOPS processing also includes three forms of value at risk, net income simulation capabilities, transfer pricing, yield curve analytics and Kamakura's well-known non-maturity deposit valuation and interest rate risk analysis.

"Financial institutions world-wide are facing pressures to be more efficient both from a time perspective and a financial perspective. By outsourcing risk analytics, everyone saves time and money. More importantly, KOPS clients will have at their finger-tips risk measurement information of the highest possible quality," commented Donald R. van Deventer, president of Kamakura Corporation. "Bob Jarrow, our director of research, was IAFE Financial Engineer of the Year in 1997. The management team has collectively published more than 100 articles and six books.

We believe that risk application service providers need to have this kind of international reputation for the risk analytics to stand the scrutiny of management, shareholders, employees, and regulators. Just as important, we believe that clients are demanding a risk application service provider that builds the software that they use for processing. Without this, clients can never have the transparency of risk analytics that a world standard of best risk practice demands," added Dr. van Deventer. "Kamakura is prepared to provide documentation of all of its calculations for KOPS clients so that our clients can in turn make the appropriate disclosure of their risk position."

Kamakura Corporation is one of the leading firms world-wide in risk management software and risk management information.

Kamakura's clients include all five of the five largest banks in the world. Kamakura's 22 risk management information and software clients range in size from $3 billion in assets to $1 trillion in assets. Kamakura risk management software is currently used in the United States, Germany, Canada, Mexico, Japan, Australia, Korea, and Hong Kong. Kamakura's lead risk information client is faculty in the Department of Economics at Harvard University. Kamakura has a world-wide marketing alliance with Unisys that makes Kamakura products available in almost every major city around the globe.