Demica || Demica, Hitachi Information Systems and Risk Monster announce strategic partnership

Demica, Hitachi Information Systems and Risk Monster announce strategic partnership

Japanese market to gain wider access to Demica’s innovative Citadel product range

London, UK; Tokyo, Japan [2 August 2007]

Demica, the market leading provider of specialised working capital solutions, announced today that it is teaming up with Hitachi Information Systems Ltd, a major application solution company, and Risk Monster, a provider of credit ratings for Japanese companies, in a strategic partnership. Hitachi will distribute and support Demica’s Citadel range of solutions throughout Japan. Through this agreement with Hitachi Information Systems, Demica’s three Citadel platforms for Supply Chain Finance, Trade Receivables Securitisation, and Invoice Discounting will be made widely available to Hitachi’s clients throughout the Japanese market. Risk Monster will collaborate with Demica to track receivables data and performance history to enhance their credit management outsourcing services.

Following on from the recent announcement by the Japanese Government of a change to the law regarding the treatment of receivables, trade receivables securitisation transactions will become a real prospect in Japan by 2009. Demica’s extensive knowledge and experience in trade receivables securitisation transactions has at its foundation the Citadel ASP platform. Citadel ASP has the functionality to monitor and report on the substantial volumes of trade receivables information required for a successful securitisation transaction. The web-based platform offers the ability to track individual invoices across multiple sales ledgers, facilitating client reporting to rating agency standard, with minimal disruption to local operating companies.

The key to a successful supply chain finance programme is the ability to process high volumes of payables, both securely and without the need for manual processes. Citadel SCF brings significant cash-flow benefits to corporates, both buyers and suppliers, and a simple, automated transaction management solution for lenders. A fully-hosted ASP solution, requiring no on-site installation, Citadel SCF offers a scaleable solution for lenders to offer on-demand supply chain financing to their clients.

Citadel ID is an innovative risk management solution that offers providers of Invoice Discounting solutions the ability to access invoice-level control for all related transactions – driving overall business performance. The Citadel ID solution enables clients to generate additional revenue through business expansion, increase operational efficiencies thereby generating significant cost savings, and introduce greater risk management capability.

Citadel, which is designed to operate seamlessly across multiple jurisdictions, time zones, currencies, languages and operating systems, currently runs over €10.5 billion worth of rated transactions for a diverse range of multi-national clients. The partnership will draw on the specific strengths of each partner to bring additional benefits to clients of Demica, Hitachi Information Systems and Risk Monster alike.

“We are delighted that, through our collaboration with Hitachi Information Systems and Risk Monster, we will be able to provide access to Citadel to companies throughout Japan. Hitachi and Risk Monster’s clients will benefit from access to improved financing terms, and a complete set of solutions they can leverage to enhance their trading relationships and ultimately, improve their competitive advantage,” says Tatsuya Kuboi, Executive Vice President, Demica.

“Our strategic partnership with Demica demonstrates our shared vision of bringing world-class working capital solutions to Japanese corporates.” says Shigeo Furuta, General Manager of Financial Solution Services Division, Hitachi Information Systems. “We look forward to the benefits that our collaboration with Demica will bring our clients.”

Kenichi Sugano, President, Risk Monster comments: “Demica’s position as market leader in trade receivables reporting, coupled with Risk Monster’s expertise in the Japanese market, will enable us to offer our clients a truly accurate ratings service.”

About Hitachi Information Systems

Hitachi Information Systems is an IT service provider that excels in providing comprehensive IT solutions, from packaged system design and development to network building/operating and system operations through its own data centres. Since its foundation in 1959, Hitachi Information Systems has been offering highly reliable IT services to clients across a wide range of sectors and industries, including local government and municipalities, financial institutions, and companies in the manufacturing and distribution industries.

For more information, visit

www.hitachijoho.com

About Risk Monster

Based on their general trading company’s credit risk management know-how and corporate databases for around 1.7 million companies, Risk Monster provides credit management ASP services via the Internet. With over 3,500 current member companies (as of the end of March, 2007), Risk Monster has affirmed its status as a leading player in the provision of “credit management outsourcing services”. In addition, in response to the needs of various member companies, Risk Monster has recently established a BPO subsidiary, Rismon Muscle Data Ltd., that supports marketing operations and efficiency, and has also launched personnel and administration business support services.

For more information, visit

www.riskmonster.co.jp

About Demica

Demica is a market leading provider of specialised working capital solutions providing consulting, advisory and technology services to a diverse range of multi-national clients. Demica works with the world's leading investment banks, private equity sponsors and global corporations to implement innovative solutions to their securitisation and supply chain finance requirements.

Demica’s technology is used around the globe running in excess of €10.5 billion of invoice-based transactions on its Citadel® platform. Demica is a wholly owned subsidiary of the J.M. Huber Corporation, one of the largest privately held companies in the United States. Demica has offices in London, Atlanta and Tokyo.

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