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Consolidated Results for the First Half ended September 30, 2008
(Prepared in Accordance with U.S. GAAP) - 75% increase in operating income, marked increases both in revenues and income
from favorable results of Digital Entertainment Segment -

No. 08-009

November 6, 2008

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the first half ended September 30, 2008 were ¥146,904 million (109.8 % of the same period in the previous year) and ¥22,844 million (175.2 % of the same period of the previous year), respectively, and we marked increases both in net revenues and income.

Income before income taxes and net income were ¥22,408 million (171.4 % of the same period of the previous year) and ¥11,964 million (190.3 % of the same period of the previous year), respectively.

In the first half ended September 30, 2008, we also posted record-high net revenues and operating income.

Digital Entertainment business recorded favorable results due to the strong sales posted by METAL GEAR SOLID 4 GUNS OF THE PATRIOTS, released simultaneously worldwide, as well as soccer game WINNING ELEVEN series and JIKKYOU PAWAFURU PUROYAKYU series.

1. Consolidated Results of Operation

(Millions of yen)
  Net Revenues Operating Income Income Before Income Taxes Net Income
Six Months ended September 30, 2008 146,904 22,844 22,408 11,964
Six Months ended September 30, 2007 133,743 13,042 13,075 6,288

3-year Net Revenues and Operating Income


2.Segment Information - Net Revenues

(Millions of yen)
  Six Months ended September 30, 2007 Six Months ended September 30, 2008 % of previous year
Digital Entertainment 74,141 93,030 125.5
Health & Fitness 43,899 45,456 103.5
Gaming & System 7,600 7,854 103.3
Other, Corporate and Eliminations 8,103 564 7.0
Consolidated 133,743 146,904 109.8

3.Segment Information - Operating Income

(Millions of yen)
  Six Months ended September 30, 2007 Six Months ended September 30, 2008 % of previous year
Digital Entertainment 12,915 26,305 203.7
Health & Fitness 3,613 1,564 43.3
Gaming & System 950 1,040 109.5
Other, Corporate and Eliminations (4,436) (6,065) -
Consolidated 13,042 22,844 175.2

4.Overview of the First Half ended September 30, 2008

Digital Entertainment Segment

  1. (1) Increased sales of series titles including METAL GEAR SOLID 4 GUNS OF THE PATRIOTS.
  2. (2) Solid sales of video game software including sports, music and quiz games.
  3. (3) Continued solid sales of YU-GI-OH! TRADING CARD GAME series.
  4. (4) Steady sales of arcade machines including jubeat and HORSERIDERS showed solid sales.

Health & Fitness Segment

  1. (1) 3 new facilities; Shin-Nagata (Hyogo) , Imazato (Osaka) and Musashi-Kosugi (Kanagawa).
  2. (2) 5 new contract-based facilities including Shitsugen no kaze arena Kushiro in Hokkaido.
  3. (3) Enhanced metabolic syndrome prevention programs and sales of supplements.
  4. (4) Two swimmers from Konami Swimming Team and an athlete from Konami Gymnastics Team participated in the 2008 Beijing Olympics, and won a silver medal and a bronze medal.

Gaming & System Segment

  1. (1) Strong sales of K2V series slot machines and 5-reel spinner Advantage 5 in North America.
  2. (2) Expanding sales of Konami Casino Management System and stabilization of income from participation fee.
  3. (3) Release of Advantage 5 in Australia, a highly-acclaimed 5-reel spinner in the North American market.
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2Q FY2009 Consolidated Financial Results (PDF)
2Q FY2009 Consolidated Financial Results Supplemental Material (PDF)


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