Consolidated Results for the Year ended March 31, 2010 (Prepared in Accordance with U.S. GAAP)

May 13, 2010

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the year ended March 31, 2010 were ¥262,144 million (84.6% of the same period in the previous year) and ¥18,664 million (68.2% of the same period of the previous year), respectively.

Income before income taxes and net income attributable to Konami Corporation were ¥17,122 million (69.3% of the same period in the previous year) and ¥13,314 million (122.4% of the same period of the previous year), respectively.

In the Gaming & System segment, we achieved record net revenues and operating income. Sales of new?generation cabinet Podium, equipped with K2V series, recorded solid sales in the North American and Australian markets. The business has grown to become an important pillar among our business operations. In the Digital Entertainment segment, we rolled out sports video game titles and FORTUNE TRINITY for arcades. LOVEPLUS, our new dating simulation title, as well as card game products showed brisk sales.

In the Health & Fitness segment, we opened new fitness clubs under direct management and expanded our portfolio of fitness clubs outsourced to KONAMI. We also enhanced services and products based on regional characteristics and customer needs

1. Consolidated Results of Operation

(Millions of yen)
 
Year ended
March 31, 2010
Year ended
March 31, 2009
Year ended
March 31, 2008
Net Revenues
262,144
309,771
297,402
Operating Income
18,664
27,361
33,839
Income Before
Income Taxes
17,122
24,719
32,834
Net income attributable
to Konami Corporation
13,314
10,874
18,345

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Year ended
March 31, 2009
187,628
18,336
89,965
13,842
309,771
Year ended
March 31, 2010
142,650
19,996
85,765
13,733
262,144
% of previous year
76.0
109.1
95.3
99.2
84.6

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Year ended
March 31, 2009
41,552
3,447
-8,270
-9,368
27,361
Year ended
March 31, 2010
21,483
4,673
-1,922
-5,570
18,664
% of previous year
51.7
135.6
-
-
68.2

4.Overview of the year ended March 31, 2010

Digital Entertainment Segment

  1. Released a wide variety of video games including popular sports / TV-animated series, new IP LOVEPLUS and movie-licensed titles for overseas market
  2. Brisk sales of standard arcade games including MAH-JONG FIGHT CLUB GARYOTENSEI and token-operated machine FORTUNE TRINITY
  3. Solid sales of card games
  4. Distribution of content for smart phones including iPhone

Gaming & System Segment

  1. Solid sales of video slot machine Podium and stepper Advantage 5
  2. Growth in sales of Konami Casino Management System and participation agreements
  3. Showcased our brand new innovative slot machine Advantage Revolution at the Global Gaming Expo
  4. Expanded distribution network in Latin American market

Health & Fitness Segment

  1. Directly operated clubs: 211 (y/y -17), Contract-based clubs: 116 (y/y -1), Total: 327 (y/y -18)
  2. Opened six new clubs including relocations and rebuilds.
  3. Closed and consolidated 21 clubs as a part of structural reform
  4. Enhanced services and products based on regional characteristics and customer needs

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