Consolidated Results for the nine months ended December 31, 2010 (Prepared in Accordance with U.S. GAAP)

February 3, 2011

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and operating income for the nine months ended December 31, 2010 were ¥188,308 million ( 98.6 % of the same period in the previous year) and ¥ 16,541 million ( 96.6 % of the same period of the previous year), respectively.

Income before income taxes and net income attributable to KONAMI CORPORATION were ¥15,224 million ( 94.4 % of the same period in the previous year) and ¥9,615million ( 90.5 % of the same period of the previous year), respectively.

Consolidated results for the three quarters saw each of our business segments roughly meet their earnings forecast, despite the postponement of several titles.

Net revenues and operating income of the Gaming & Systems business slightly decreased year-on-year due to the yen appreciation. However the sales of slot machines continued to progress at a record-setting pace.

In our Digital Entertainment business, sales were solid for the latest versions of our highly popular METAL GEAR series, Winning Eleven /Pro Evolution Soccer series and LOVEPLUS series, launched on multiple platforms. In addition, our SNS game "DRAGON COLLECTION , " launched in September 2010, generated strong sales.

The Health & Fitness business focused on enhancing services that meet the diversifying needs of our customers. We opened new fitness clubs under our direct management and expanded our portfolio of contract-based facilities.

1. Consolidated Results of Operation

(Millions of yen)
 
9 months ended
December 31, 2010
9 months ended
December 31, 2009
Net Revenues
188,308
190,932
Operating Income
16,541
17,126
Income Before
Income Taxes
15,224
16,119
Net income attributable
to KONAMI CORPORATION
9,615
10,620

2.Segment Information - Net Revenues

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
9 months ended
December 31, 2009
100,427
14,729
64,584
11,192
190,932
9 months ended
December 31, 2010
97,943
14,454
65,104
10,807
188,308
% of previous year
97.5
98.1
100.8
96.6
98.6

3.Segment Information - Operating Income

(Millions of yen)
 
Digital Entertainment
Gaming & Systems
Health & Fitness
Other, Corporate
and Eliminations
Consolidated
9 months ended
December 31, 2009
16,402
3,829
1,070
(4,175)
17,126
9 months ended December 31, 2010
12,958
3,774
1,315
(1,506)
16,541
% of previous year
79.0
98.6
122.9
-
96.6

4.Overview of the nine months ended December 31, 2010

Digital Entertainment Business

  1. SNS game "DRAGON COLLECTION," launched in September 2010, captured the No.1 position in GREE's game rankings.
  2. Launched "METAL GEAR SOLID PEACE WALKER" as the first sequel in the METAL GEAR series for the PSP.
  3. 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.
  4. Released "LOVEPLUSPLUS", a romance communication game that implements the gameplay of its hit predecessor, which features a brand new event.

Gaming & Systems Business

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

Health & Fitness Business

  1. Added three new directly operated clubs (Niigata, Kami-Ooka and Nishioji-Oike), and 33 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.