Prior Notice of Merger

Konami Corporation
16 December 2004


FOR IMMEDIATE RELEASE
                                                               December 16, 2004


                                                              KONAMI CORPORATION
                                      2-4-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
                                                                 Kagemasa Kozuki
                                                   Chairman of the Board and CEO
                                                             Ticker 9766 at TSE1
                                                         Contact: Toshiro Tateno
                                        Director and Executive Corporate Officer
                                                           Tel: [phone]


                                Simplified Merger


Konami Corporation ('Konami') hereby announces that resolutions of meetings of
the respective Boards of Directors of Konami and Konami Online, Inc., ('KOL'), a
wholly-owned subsidiary of Konami, held on December 16, 2004 decided that KOL
will merge with and into Konami effective on April 1, 2005.


1. Objective of Merger


Konami will take over KOL's business, including the distribution of various
contents for mobile phones, building a system for online games and management
and operation of computer servers for online networks. Konami will take up all
of KOL business functions from planning and developing the contents for mobile
phones and online games and building systems to operation of computer servers,
which will enable us to be faster and more flexible in making business
decisions. In connection with the merger of Konami and KOL, Konami will also
merge with its game software development subsidiaries, Konami Computer
Entertainment Studios, Inc., Konami Computer Entertainment Tokyo, Inc. and
Konami Computer Entertainment Japan, Inc. effective on April 1, 2005. We will
shift our managerial resources into the online game business, which is expected
to grow, by merging with these game software development subsidiaries, thereby
enhancing the effectiveness of the merger with KOL.


2. Outline of Merger

A. Schedule of Merger
      Board approval for the basic merger agreement:           December 16, 2004
      Signing of merger agreement:                             December 16, 2004
      Effective date of merger:                                April 1, 2005






B. Method of Merger
      Konami will be the surviving entity and absorb KOL, which will
subsequently be dissolved. This      merger takes place without the approval of
a shareholdersf meeting of Konami in accordance with      Article 413-3-1 of the
Commercial Code.


C. Merger Ratio
      Company                 Konami                KOL
      Merger Ratio              1                    1


   Due to the fact that Konami owns 100% of the shares of KOL, there will be no issuance of new shares or
   capital increase.


D.    Cash Paid for Exchange of Shares
      There will be no payment of cash for exchange of shares.




3. Outline of Merging Companies




Registered name                        Konami                              KOL
Main                      Production, manufacture and sales Distribution of various contents
                          for consumer game software,       for mobile phone, building system
business                  contents for amusement facility   for online game and management and
                          and toys                          operation of computer server for
                                                            online networks
Date of                   March 19, 1973                    October 1, 2001

incorporation
Location of head          2-4-1 Marunouchi,                 6-10-1 Roppongi, Minato-ku, Tokyo

office                    Chiyoda-ku, Tokyo
Representative            Kagemasa Kozuki                   Fumiaki Tanaka

                          Chairman of the                   Representative Director and
                                                            President
                          Board and CEO
Capital                   47,398 million yen                300 million yen
Total number of           128,737,566                       300

shares issued
Stockholdersf             108,016 million yen               1,434 million yen

equity

(as of March 31, 2004)
Total assets              183,031 million yen               2,505 million yen

(as of March 31, 2004)
Financial year end        March 31                          March 31
Number of                 904                               72

employees

(as of March 31, 2004)
Major vendors             (Vendors)                         (Vendors)

and                       Sony Computer                     Konami

customers                 Entertainment Inc.                Konami Computer Entertainment
                                                            Studios, Inc.
                          Nintendo Co.,

                          Ltd.
                                                            (Customers)

                                                            NTT Docomo, Inc.
                          (Customers)
                                                            KDDI Corporation
                          Konami Marketing Japan, Inc.
                                                            Vodafone K.K.

Major shareholders        Kozuki       10.50%               Konami      100%
                          Holdings
and shareholding          B.V.
                          Japan        8.32%
ratios                    Trustee
                          Services
(as of March 31, 2004)    Bank, Ltd.
                          The Master   6.89%

                          Trust Bank

                          of Japan,

                          Ltd.
                          Konami       6.41%
                          Kozuki       5.43%
                          Capital
                          Corporation
Main banks                Sumitomo                          Sumitomo Mitsui

                          Mitsui Banking                    Banking Corporation

                          Corporation
Relationship between      Capital          Konami owns 100% issued share of KOL.
                          Personnel        None
parties                   Transaction      KOL distributes various contents which Konami
                                           creates for mobile phone and PC. KOL also purchases
                                           game software from Konami and sell them to
                                           consumers via Internet.



Financial results for the three most recent years


                                                            (Millions of yen, except per share data)
                       Konami
Fiscal year ended on        March 31, 2002            March 31, 2003            March 31, 2004
Net revenues                             123,283                   130,186                   146,654
Operating income                          11,083                    11,577                    13,303
Ordinary income                           11,792                    13,068                    16,910
Net income (loss)                          8,675                  (11,284)                    10,381
Net income (loss) per                      67.96                   (92.82)                     83.71
share (yen)
Dividend per share                         54.00                     54.00                     54.00
(yen)
Stockholders' equity                    1,029.80                    872.38                    894.08
per share (yen)


                                                            (Millions of yen, except per share data)
                       KOL
Fiscal year ended on        March 31, 2002            March 31, 2003            March 31, 2004
Net revenues                               1,291                     3,262                     3,450
Operating income                             208                     1,188                       909
Ordinary income                              185                     1,328                       920
Net income                                   102                       684                       373
Net income per share                     340,147                 2,278,652                 1,241,892
(yen)
Dividend per share                        50,000                    50,000                   620,000
(yen)
Stockholders' equity                   1,358,836                 3,587,488                 4,779,380
per share (yen)



3.       After the Merger
Registered trade       Konami Corporation

name
Main business          Production, manufacture and sales of consumer game 
                       software, contents for amusement facilities and toys
Location of head       2-4-1 Marunouchi, Chiyoda-ku, Tokyo
office
Representative         Kagemasa Kozuki
Capital                47,398 million yen
Total assets           Undecided
Financial year end     March 31


Effects on results of operation
     As a result of the merger, our consolidated operating results are expected
to improve as a result of improved business efficiency. However, the
forecast for our consolidated operating results after the merger is not
currently determined.



This press release contains forward-looking statements about our industry, our
business, our plans and objectives, our financial condition and our results of
operations that are based on our current expectations, assumptions, estimates
and projections. These forward-looking statements are subject to various risks
and uncertainties. Known and unknown risks, uncertainties and other factors
could cause our actual results to differ materially from and be worse than those
contained in or suggested by any forward-looking statement. We cannot promise
that our expectations, projections, anticipated estimates or other information
expressed in or underlying these forward-looking statements will turn out to be
correct. We do not undertake any obligation to update or revise any forward-
looking statements, whether as a result
of new information, future events or otherwise.






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