Clayton to Acquire UK-Based Euro Risk Management, Expanding Risk Services To United Kingdom and European Markets

Clayton Holdings, Inc. (NASDAQ:CLAY), a provider of
information-based analytics, consulting and outsourced services for
capital markets firms, lending institutions, fixed income investors
and loan servicers, today announced that it has agreed to acquire Euro
Risk Management Limited, Bristol, a credit and risk consultancy
operating in the United Kingdom, Italy and Holland.

Terms of the deal, which is expected to close in April, were not
disclosed.

Euro Risk Management provides a broad range of services, including
underwriting, due diligence, outsourced quality control, credit policy
reviews and operational consulting to capital markets firms and buyers
of residential mortgages and other assets. The company, which was
established in 1997, uses a variable workforce model to provide teams
of experts that perform reviews.

The company will be re-named Clayton Euro Risk Limited, and Tim
Keast, Chief Executive Officer of Euro Risk Management, will continue
to lead the company as President.

Frank Filipps, Chairman and Chief Executive Officer of Clayton
Holdings said: "Clayton's clients, the largest international debt
issuers, are rapidly building a secondary market for residential and
other asset-backed securities in Europe. Our strategy is to follow our
clients into these new markets. This acquisition gives us a strong
local presence and a seasoned, well-respected management team on the
ground. It is a first step towards building a platform to deliver a
full range of risk and transaction services internationally."

Commenting on the transaction, Tim Keast said: "Our clients in the
UK and on the Continent will benefit from the expertise, technology
and scale that Clayton brings. This is an exciting time in our markets
and partnering with Clayton - the US leader in due diligence and bond
surveillance - will enable us to take advantage of this opportunity."

About Clayton Holdings, Inc.

Clayton Holdings, Inc., headquartered in Shelton, Connecticut, is
an information and analytics company serving leading capital markets
firms, lending institutions, fixed income investors and loan servicers
with a full suite of information-based analytics, specialty consulting
and outsourced services. Clayton's services include due diligence
analytics, conduit support services, professional staffing, compliance
products and services, credit risk management and surveillance and
specialized loan servicing services. Additional information is
available at www.clayton.com.

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