Consolidated Results for the First Quarter ended June 30, 2010 (Prepared in Accordance with U.S. GAAP)

February 4, 2010

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the first quarter ended June 30, 2010 were ¥53,183 million (95.0 % of the same period in the previous year) and ¥2,879 million (287.9 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥2,452 million (271.2 % of the same period in the previous year) and ¥1,265 million (344.7 % of the same period of the previous year), respectively.

In the Gaming & System segment, we continued to achieve record high net revenues and operating income for the first quarter, sustaining the momentum of the same period of the previous year. Our video slot machine "Podium" showed brisk sales globally.

Digital Entertainment segment saw favorable sales of METAL GEAR series, Winning Eleven series and the latest title of LOVEPLUS series as the main driver for home video game software.

In the Health & Fitness segment, we opened new fitness clubs under KONAMI's direct management and expanded our portfolio of contract-based facilities. At the same time, we enhanced services that meet the diversifying needs of our customers.

1. Consolidated Results of Operation

(Millions of yen)
 
Three Months ended
June 30, 2010
Three Months ended
June 30, 2009
Net Revenues
53,183
55,975
Operating Income
2,879
1,000
Income Before
Income Taxes
2,452
904
Net income attributable
to KONAMI CORPORATION
1,265
367
image

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Three Months ended
June 30, 2009
24,601
3,907
21,438
6,029
55,975
Three Months ended
June 30, 2010
25,016
4,346
21,428
2,393
53,183
% of previous year
101.7
111.2
100.0
39.7
95.0

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Three Months ended
June 30, 2009
1,547
683
23
(1,253)
1,000
Three Months ended
June 30, 2010
2,347
1,151
149
(768)
2,879
% of previous year
151.7
168.5
647.8
-
287.9

4.Overview of the First Quarter ended June 30, 2010

Digital Entertainment Segment

  1. Launched "METAL GEAR SOLID PEACE WALKER" as the first sequel in the METAL GEAR series for the PSP.
  2. Released "WORLD SOCCER Winning Eleven 2010 Aoki Samurai no Chosen" on multiple platforms to coincide with the once-every-four-years festivity that excites soccer fans.
  3. Released "LOVEPLUSPLUS," a romance communication game that implements the gameplay of its hit predecessor, which features a brand new event.
  4. Stable sales of card games.

Gaming & System Segment

  1. Solid sales of video slot machine "Podium."
  2. Steady increase of income from participation fees.
  3. Expanded sales network and extended partnership with official distributors in Central and South American, European and Asian markets.

Health & Fitness Segment

  1. Added two new directly operated clubs (Niigata and Kami-Ooka, Yokohama city), and 30 new contract-based clubs.
  2. 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.