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

November 4, 2010

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the six months ended September 30, 2010 were ¥115,763 million (101.6 % of the same period in the previous year) and ¥8,050 million (174.6 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥7,227 million (179.4 % of the same period in the previous year) and ¥4,192 million (187.8 % of the same period of the previous year), respectively.

Each business segments achieved their targeted plan for the most part, resulting in the steady progression of business performance of the consolidated result for the first half.

The Gaming & System segment progressed favorably while being affected by the appreciation of the yen and reached a record high net revenues and operating income for the first half. Our video slot machine “Podium” continued to progress steadily in markets across the world.

The Digital Entertainment segment rolled out the latest title of our highly popular METAL GEAR series, Winning Eleven (known in the US and Europe as Pro Evolution Soccer) series and LOVEPLUS series on multiple platforms, which showed brisk sales.

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 and facilities that meet the diversifying needs of our customers.

1. Consolidated Results of Operation

(Millions of yen)
 
Six Months ended
September 30, 2010
Six Months ended
September 30, 2009
Net Revenues
115,763
113,914
Operating Income
8,050
4,611
Income Before
Income Taxes
7,227
4,029
Net income attributable
to KONAMI CORPORATION
4,192
2,232
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2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Six Months ended
September 30, 2009
51,419
8,896
43,375
10,224
113,914
Six Months ended
September 30, 2010
53,135
9,264
43,842
9,522
115,763
% of previous year
103.3
104.1
101.1
93.1
101.6

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & System
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
Six Months ended
September 30, 2009
4,484
2,215
298
-2,386
4,611
Six Months ended
September 30, 2010
4,627
2,481
754
188
8,050
% of previous year
103.2
112.0
253.0
-
174.6

4.Overview of the First Half ended September 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 worldwide.

    Launched "Pro Evolution Soccer 2011" in Europe, and for the first time ever in videogame history, this title includes "Copa Santander Libertadores" mode that decides the champion club team in South America.
  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), and 32 new contract-based clubs.
  2. Opened the "Konami Sports Club Golf Academy", which offers an unprecedented golf instruction service that combines KONAMI's fitness instruction know-how, its teaching theories and state-of-the art golf swing analysis technology. The academy is being introduced sequentially at Konami Sports Clubs nationwide.
  3. 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.