Japonica Partners Files U.S. Patent on "Triple Option" Hurdle

----New global best practice integral to unique business model----

Dateline: Providence, Rhode Island USA, November 10, 2004

Japonica Partners, the proactive management and investment firm, filed a U.S. patent application for its "Triple Option" IRR Hurdle Rate. The very high "Triple Option" IRR Hurdle Rate is a new global best practice and integral to Japonica’s unique business model.

The "Triple Option" IRR Hurdle Rate is consistent with Japonica’s business model, which seeks to PERFECTLY ALIGN Japonica’s team members with its partners. Japonica’s convictions in its unique business model are reinforced by both Japonica’s pre-control and control investment successes.

The "Triple Option" IRR Hurdle Rate complements the simplicity of Japonica’s business model and highlights the benefits of continuous improvement. Japonica does not use industry standard fund structures. Instead, Japonica forms partnerships that seek to perfectly align partner interests and demand an extraordinary level of superior performance.

The "Triple Option" IRR Hurdle Rate accommodates the performance benchmarks of major asset classes by allowing the selection of one or more hurdle rate alternatives. It provides three alternative hurdle rates, each set at a level above performance benchmark metrics. Its Fixed Hurdle Rate is 15%. Its U.S. Treasury-based Hurdle Rate is 1,000 basis points above the 3-month Treasury Bill. And, its Stock Market-based Hurdle Rate is 500 basis points above either the S&P 500 or 400 Index.

All calculations are cash-based. And profit sharing only commences upon 100% cash return on investment and selected IRR Hurdle Rate. Japonica’s business model contains no annual management fee or advisory fees for the general partner. Japonica team members who assume positions with a control investment forgo industry standard incentive compensation.

Under the Fixed Hurdle Rate alternative, over a 40% gross IRR must be achieved just to earn break-even compensation with industry standard terms.

About Japonica Partners

Japonica Partners is an entrepreneurial co-investment firm that makes concentrated investments in underperforming global large caps, providing entrepreneurial returns for accomplished money managers who succeed with top quartile performance.

For more information contact:
Chet Hollister
Principal
Japonica Partners
401.861.6160
chollister@japonica.com