Global Credit Quality Declines Again in February

Honolulu, HI - 4 March 2008

Kamakura Corporation announced today that its monthly index of troubled public companies increased again in February, rising 0.2% to 12.3% of the global public company universe. This is the ninth rise in the troubled company index in the last 11 months. Current credit conditions are better than only 50.3% of the monthly periods since the start of the index in January, 1990. Credit conditions remain at their worst level since December 2003. The all-time low in the index was 5.4%, a level reached in April and May, 2006. Kamakura defines a troubled company as a company whose default probability is in excess of 1%. The index covers more than 20,000 public companies in 29 countries using the fourth generation version of Kamakura's advanced credit models.

"The market continues to teeter on the brink of a recession, with credit conditions barely better than the average for the last 18 years," said Warren Sherman, Kamakura President and Chief Operating Officer. "In February, the percentage of the global corporate universe with default probabilities between 1% and 5% declined by 0.2% to 8.5%. The percentage of companies with default probabilities between 5% and 10% was up 0.1% to 1.9% of the universe in February. The percentage of the universe with default probabilities between 10 and 20% was up by 0.4% to 1.3% of the universe. The percentage of companies with default probabilities over 20% was up by 0.1% to 0.7% of the total universe in February. "

Beginning in January 2006, Kamakura has moved to a global index covering 29 countries using the annualized one month default probability produced by the best performing credit model of the Kamakura Risk Information Services default and correlation service. The model used is the fourth generation Jarrow-Chava reduced form default probability, a formula that bases default predictions on a sophisticated combination of financial ratios, stock price history, and macro-economic factors. The countries currently covered by the index include Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hong Kong, India, Ireland, Israel, Italy, Japan, Luxemburg, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, and the United States.

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