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On behalf of everyone at the Konami Group, I would like to thank our shareholders and other investors for their continued support and encouragement.
Moreover, we would like to express our deepest condolences to all those who suffered from the Great East Japan Earthquake and our wishes for a rapid recovery for the disaster-stricken areas.

In Japan, the economy has shown signs of a moderate recovery, but a number of uncertain factors are expected to affect market conditions. These factors include a low-price orientation accompanying sluggish consumption and intensified competition, the continuing appreciation of the yen, and disaster-related damage.

The Group's operating environment remains challenging, but through rapid decision making and a strengthened focus on cash flow management, we have bolstered our financial position and enhanced our earnings capability. Moreover, to record continued growth in the years ahead, I believe it is important to allocate management resources to fields with strong potential, and thereby to maximize corporate value.

In KONAMI's fields of business—entertainment and health—customer preferences are diversifying and new communities are forming. To respond appropriately to drastic changes in the market environment and advance to a flexible, ongoing operational structure, the Group strives to accurately meet customer demand in each market, establishes a system for the promotion of flexible development in each field of business, and targets sustained growth. In this way, we will advance an operational framework that enables the entire Group to make dramatic forward progress.

We, the Konami Group of companies, are aiming to be a business group that is always highly expected by all the people around the globe, through creating and providing them with "Valuable Time."

June 2011

Kagemasa Kozuki  
Representative Director, KONAMI CORPORATION