Kamakura Reports Third Consecutive Monthly Decline in Corporate Credit Quality

Kamakura Index of Troubled Companies Jumps in March

HONOLULU, April 8, 2005: Kamakura Corporation reported today that its monthly index of troubled companies in the United States rose for the third consecutive month, reaching 13.6% of the public company universe in March. The Kamakura troubled company index was up from 13.0% in February and compares with the 12.0% level in December. The index hit its most recent low of 11.1% 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 relatively low levels but the climb in the index for the last three months is quite pronounced," said Dr. Donald R. van Deventer, Kamakura Chairman and Chief Executive Officer. "The number of companies with default probabilities between 1% and 5% was 8.1% of the public company universe, up from 7.8% in February. Companies with default probabilities between 5 and 10% were up 0.2% to 2.1% of the universe. Companies with default probabilities between 10% and 20% were down 0.2% to 1.3% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, rose 0.2% to reach 2.0% of the universe in March."

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