Consolidated Results for the nine months ended December 31, 2009 (Prepared in Accordance with U.S. GAAP)

February 4, 2010

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the nine months ended December 31, 2009 were ¥190,932 million ( 81.6 % of the same period in the previous year) and ¥ 17,126 million ( 49.3 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to Konami Corporation were ¥16,119 million ( 50.8 % of the same period in the previous year) and ¥10,620 million ( 59.6 % of the same period of the previous year), respectively.

The business environment remains uncertain despite showing signs of some recovery from the economic slowdown since last year, resulting in lower net revenues and operating income compared to the same period of the previous year.

In our Digital Entertainment business, we rolled out the latest versions of sports video games and MAH-JONG FIGHT CLUB for amusement arcades. Video game titles, such as the new original romantic communication game LOVEPLUS, and card game products enjoyed steady sales. In our Health & Fitness business, we opened new fitness clubs under Konami's direct management and expanded our portfolio of contract-based facilities. In addition to the development and introduction of facilities, we enhanced services that meet the diversifying needs of customers.

1. Consolidated Results of Operation

(Millions of yen)
 
9 months ended
December 31, 2009
9 months ended
December 31, 2008
Net Revenues
190,932
234,011
Operating Income
17,126
34,712
Income Before
Income Taxes
16,119
31,703
Net income attributable
to Konami Corporation
10,620
17,826

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & System
Other, Corporate
and Eliminations
Consolidated
9 months ended
December 31, 2008
148,711
67,737
13,297
4,266
234,011
9 months ended
December 31, 2009
100,427
64,584
14,729
11,192
190,932
% of previous year
67.5
95.3
110.7
262.3
81.6

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Health & Fitness
Gaming & System
Other, Corporate
and Eliminations
Consolidated
9 months ended
December 31, 2008
37,780
2,118
2,507
-7,693
34,712
9 months ended
December 31, 2009
16,402
1,070
3,829
-4,175
17,126
% of previous year
43.4
50.5
152.7
-
49.3

4.Overview of the nine months ended December 31, 2009

Digital Entertainment Segment

  1. Rolled out the latest soccer, baseball and animated titles
  2. Released the latest romance-themed simulation title " TOKIMEKI MEMORIAL 4 "
  3. Expanded and upgraded contents for mobile phones and terminals including iPhone, iPod touch and Windows phone
  4. Launched amusement arcade machines including music, mah-jong and baseball video games, as well as our new genre mass-medal game

Health & Fitness Segment

  1. Opened Konami Sports Club Sendai-Nagamachi (in Miyagi Prefecture), with one of the largest fitness studios in the Tohoku region
  2. Opened new directly managed and contract-based clubs, and streamlined the network of facilities (Operating 327 sports facilities nationwide as of the end of December, 2009)
  3. Initiated health management and exercise guidance at designated facilities, in partnership with a company providing operational support for Tokyo Midtown Clinic
  4. Expanded sales network into Japan Post Network Co.,Ltd. and convenience stores

Gaming & System Segment

  1. Expanded sales of stepper and video slot machines, Konami Casino Management System (KCMS) and participation agreements in North America.
  2. Introduced KCMS, while slot machines showed solid performance in Australia.
  3. Initiated full-scale marketing in Central and South America, with progress in building a network of distributors.

*Statements made in this news release reflect information available on the date of its announcement, and is subject to change without prior notice.