Ambac Financial Group Subscribes to Kamakura Default Probabilities and Correlations

KRIS Default Information to be Used for Credit Portfolio Risk Control

HONOLULU, March 22, 2005: Kamakura Corporation reported today that AAA/Aaa - rated Ambac Financial Group, Inc. (NYSE: ABK) has subscribed to Kamakura Risk Information Services default probability and default correlation service. Ambac will use Kamakura default probabilities and default correlations to measure correlated credit risk in both its current flow and portfolio of collateralized debt obligations.

"Kamakura has distinguished itself in credit risk modeling with the quality of its research and its full disclosure to clients of its credit risk model performance," said Dr. Robert Selvaggio of Ambac. "We believe that the KRIS default probability service is unique world-wide in its ability to produce default correlations for any pair of companies with default probabilities on the KRIS default probability service. Without this pair wise correlation, credit risk cannot be modeled and measured accurately."

"Kamakura is honored to be working with Ambac in credit risk management," commented Warren Sherman, Kamakura President and Chief Operating Officer. "The Company's triple-A rating from the major rating agencies is testimony to Ambac's reputation in credit risk management. Both firms will benefit from active collaboration in credit risk modeling going forward."

Kamakura is offering free trials of its KRIS default probability service to qualified institutions. For more information on Kamakura's free trial offer please visit the Kamakura Corporation web site. Additional 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 Amazon. Advanced Financial Risk Management was recently named "best finance book of 2004" on riskbook.com.

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