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Consolidated Results for the Nine Months Ended December 31, 2006
(Prepared in Accordance with U.S. GAAP)
- Posted sales and profit growth in all business segments, and marked the record high sales for the nine months - More than three times operating income for both Health & Fitness and Gaming & System

No. 07-001

February 6, 2007

KONAMI CORPORATION

We hereby announce that our consolidated net revenues and consolidated operating income for the nine months ended December 31, 2006 were ¥212,437 million (110.3% of consolidated net revenues for the same period in the previous year) and ¥26,698 million (112.0% of consolidated operating income for the same period in the previous year), respectively, and we marked increases both in sales and profits from the same period of the previous year.

The consolidated net revenues ¥212,437 million above were at a record high.

The operating income for Health & Fitness business segment and Gaming & System business segment were 323.4% and 481.6%, respectively, of the same period in the previous year.

1.Segment Information - Net Revenues

(Millions of yen)
  Nine Months
Ended December 31, 2006
Nine Months
Ended December 31, 2005
Change(%)
Digital Entertainment 129,447 124,110 104.3
Health & Fitness  66,636  60,859 109.4
Gaming & System  11,847   8,000 148.0
Other, Corporate and Eliminations   4,507   △420
Consolidated Net Revenues 212,437 192,549 110.3

2.Segment Information - Operating Income

(Millions of yen)
  Nine Months
Ended December 31, 2006
Nine Months
Ended December 31, 2005
Change(%)
Digital Entertainment  29,318  31,629 92.6
Health & Fitness   5,459   1,688 323.4
Gaming & System   1,522    316 481.6
Other, Corporate and Eliminations △9,601  △9,788
Consolidated Operating Income 26,698  23,845 112.0

3.Consolidated results of operation

(Millions of yen)
  Net Revenues Operating Income Income before Income Taxes Net Income
Nine Months
Ended December 31, 2006
212,437 26,698 26,572 14,587
Nine Months
Ended December 31, 2005
192,549 23,845 29,928 16,640

 Consolidated income before income taxes for the nine months ended December 31, 2006 was ¥26,572 million (89.0% of consolidated operating income for the same period in the previous year) and consolidated net income was ¥14,587 million (88.0% of consolidated operating income for the same period in the previous year). The primary reason of the decrease in consolidated income before income taxes and consolidated net income for the nine months ended December 31, 2006, compared from the previous same period, resulted from sales of investments in an associated company executed in the same period last year, which we realized gain on sales of ¥6,900 million. Accordingly both income before income taxes and net income actually increased from the previous same period except the gain on the sales of shares recorded as non-operating profit in the previous same period.

4.Overview of the Nine Months Ended December 31, 2006

< Digital Entertainment >

  1. (1)  Expanding sales of online game for amusement arcades (e-AMUSEMENT products) such as "MAH-JONG FIGHT CLUB", "CURUCURULABO" and "QUIZ MAGIC ACADEMY".
  2. (2)  Marked the record high sales quantity of Winning Eleven series (Pro Evolution Soccer series for European market).
  3. (3)  The world's largest token-operated game machine for amusement arcades, "GRANDCROSS", has enjoyed good sales in the market.

< Health & Fitness >

  1. (1)  Sustaining stable growth of earnings by directly-ownership facilities management as people become more health conscious.
  2. (2)  Increasing the sports facilities outsourced to us utilizing the management know-how of the largest number of the direct management facilities in Japan
  3. (3)  Increasing the sales of health related products and healthcare products.

< Gaming & System >

  1. (1)  Increasing sales of gaming machines for the expanding North American market.
  2. (2)  Expanding sales of KONAMI's original network system, "KONAMI CASINO MANAGEMENT SYSTEM".


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