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Consolidated Results for the First Quarter ended June 30, 2008
(Prepared in Accordance with U.S. GAAP) - 66% increase in operating income, marked increases both in net revenues and income
from favorable results of Digital Entertainment Segment. -

No. 08-007

August 5, 2008

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the first quarter ended June 30, 2008 were ¥70,805 million (116.7 % of the same period in the previous year) and ¥11,611 million (165.6 % of the same period of the previous year), respectively, and marked increases both in net revenues and income.

Income before income taxes and net income were ¥ 11,718 million (161.2 % of the same period of the previous year) and ¥5,664 million (146.6 % of the same period of the previous year), respectively.

For the first time in its series, METAL GEAR SOLID 4: GUNS OF THE PATRIOTS was launched simultaneously around the globe, and shipped over 3 million units worldwide on the day of its release. Furthermore, baseball, soccer and music video games and card games recorded favorable results, which largely contributed to the financial results.

1. Consolidated Results of Operation

(Millions of yen)
  Net Revenues Operating Income Income Before Income Taxes Net Income
Three Months ended June 30, 2008 70,805 11,611 11,718 5,664
Three Months ended June 30, 2007 60,650 7,010 7,271 3,863

2.Segment Information - Net Revenues

(Millions of yen)
  Three Months ended June 30, 2007 Three Months ended June 30, 2008 % of previous year
Digital Entertainment 34,875 44,850 128.6
Health & Fitness 21,617 22,174 102.6
Gaming & System 3,572 3,673 102.8
Other, Corporate and Eliminations 586 108 18.4
Consolidated 60,650 70,805 116.7

3.Segment Information - Operating Income

(Millions of yen)
  Three Months ended June 30, 2007 Three Months ended June 30, 2008 % of previous year
Digital Entertainment 8,301 13,159 158.5
Health & Fitness 1,784 584 32.7
Gaming & System 395 472 119.5
Other, Corporate and Eliminations (3,470) (2,604) 75.0
Consolidated 7,010 11,611 165.6

4.Overview of the First Quarter ended June 30, 2008

Digital Entertainment Segment

  1. (1) METAL GEAR SOLID 4: GUNS OF THE PATRIOTS shipped over 3 million units worldwide on the day of its release.
  2. (2) Globally acclaimed content such as sports / music titles showed steady repeat sales.
  3. (3) Arcade machines such as HORSERIDERS showed solid sales.
  4. (4) YU-GI-OH! TRADING CARD GAME series steady sales especially in Japan.

Health & Fitness Segment

  1. (1) Total number of fitness facilities reached 337, with 223 directly operated and 114 contract-based facilities.(y/y +18 facilities)
  2. (2) 3 newly opened facilities; Shin-Nagata (Hyogo) , Imazato (Osaka) and Musashi-Kosugi (Kanagawa).
  3. (3) Merger with Sportsplex Japan Co., Ltd. to strengthen our operations in Tokyo and Kanagawa.

Gaming & System Segment

  1. (1) Further strengthened sales of K2V series slot machines and 5-reel spinner Advantage 5 in North America.
  2. (2) Stabilization of income from participation fee and maintenance fee from Konami Casino Management System.
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1Q FY2009 Consolidated Financial Results (PDF)
1Q FY2009 Consolidated Financial Results Supplemental Material (PDF)


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