Kamakura's enterprise wide risk management system Kamakura Risk Manager and its existing English-language Kamakura Risk Information Services will be adapted for the Chinese market as part of the strategic alliance between the two companies. The new strategic alliance will provide estimated default probabilities and default correlations for a wide range of public and private entities in the Chinese market. It will also provide advanced market risk analytics for a wide range of instruments traded in China's financial markets.

"The Chinese financial markets are growing rapidly in depth, complexity and transparency. Our strategic alliance with Kamakura is an important step forward in each of these three dimensions," commented Fredy Bush, Chief Executive Officer of Xinhua Finance. "Kamakura's world-wide reputation in analytical finance, combined with its long experience in Asia, makes Kamakura the obvious choice for a strategic alliance partner."

"Xinhua Finance has an unparalleled reservoir of financial information on public and private companies in China. They also have an electronic delivery system for this financial information that is unique in the Chinese market," said Warren Sherman, Kamakura President and Chief Operating Officer. "The combination of Kamakura's financial analytics and the Xinhua Finance data and delivery systems allows us to help create value for the full range of Xinhua Finance clients both inside and outside of China."

Xinhua Finance and Kamakura announced that the companies expect the first product of the strategic alliance to be delivered in 2006. Under terms of the strategic alliance, Xinhua Finance will invest an undisclosed amount of capital in the strategic alliance and Kamakura will contribute a perpetual license for its Kamakura Risk Manager enterprise-wide risk management software package. Kamakura will also provide access to key Kamakura managers like research director Dr. Robert A. Jarrow, CEO and founder Dr. Donald R. van Deventer, and liquidity and asset and liability management expert Leonard Matz, Managing Director.