Prior Notice of Merger

Konami Corporation
22 February 2005


FOR IMMEDIATE RELEASE                                          February 22, 2005

                                                              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]

                        Konami -- KME Merger Announcement

Konami Corporation ('Konami') announced today that, pursuant to resolutions adopted at meetings of the
respective Boards of Directors of Konami and Konami Media Entertainment, Inc., ('KME'), a wholly-owned
subsidiary of Konami, held on February 22, 2005, KME will merge with and into Konami, effective April 1,
2005.


1.       Objective of Merger

Konami will take over KME's existing businesses, such as its music business, which includes the sale of soundtracks
from home video game software, and publication of game tip books (containing clues and strategies for popular games).
In connection with the merger of Konami and its game software development subsidiaries, Konami Computer Entertainment
Studios, Inc., Konami Computer Entertainment Tokyo, Inc. and Konami Computer Entertainment Japan, Inc., which will also
be effective on April 1, 2005, Konami will directly conduct all aspects of its business, from planning and developing
products to production and sales of soundtrack CDs and game tip books, which will enable us to be faster and more
flexible in making business decisions.



2.       Outline of Merger

A. Schedule of Merger

      Board approval for the basic merger agreement:           February 22, 2005
      Signing of merger agreement:                             February 22, 2005
      Effective date of merger:                                April 1, 2005


B. Method of Merger

      KME will merge with and into Konami, which will be the surviving entity. In accordance with
      Article 413-3-1 of the Commercial Code, the merger will occur without the approval of Konamifs
      shareholders at a shareholder meeting.


C. Merger Ratio

      Company                 Konami                KME
      Merger Ratio              1                    1


   Due to the fact that Konami owns 100% of the shares of KME, there will not be an issuance of new shares
   or any 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                              KME

Main                      Production, manufacture and sales Planning, production and sales of
                          for consumer game software,       music and video package products
business                  contents for amusement facility
                          and toys                          Planning, publications and
                                                            distribution of books and
                                                            magazines

Date of                   March 19, 1973                    May 20, 1997
incorporation

Location of head          2-4-1 Marunouchi,                 1-12-1 Dogenzaka, Shibuya-ku,
                                                            Tokyo
office                    Chiyoda-ku, Tokyo

Representative            Kagemasa Kozuki                   Akihiko Nagata
                          Chairman of the                   Representative Director and
                                                            President
                          Board and CEO

Capital                   47,398 million yen                180 million yen

Total number of           128,737,566                       1,800
shares issued

Stockholders'             108,016 million yen               683 million yen
equity
(as of March 31, 2004)

Total assets              183,031 million yen               849 million yen
(as of March 31, 2004)

Financial year end        March 31                          March 31

Number of                 904                               30
employees
(as of March 31, 2004)

Major vendors             (Vendors)                         (Vendors)
and                       Sony Computer Entertainment Inc.  Daiichi Paper Inc.
customers                 Nintendo Co., Ltd.                Dai Nippon Printing Co., Ltd.


                          (Customers)                       (Customers)

                          Konami Marketing Japan, Inc.      Nippon Shuppan Hanbai Inc.

                                                            Kingrecords Co., Ltd.
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 Corporation        Banking Corporation

Relationship between      Capital          Konami owns 100% issued share of KME.
                          Personnel        None

parties                   Transaction      KME produces and distributes music CDs and game tip
                                           books for game software having license agreement of
                                           intellectual properties from Konami.


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)
                       KME

Fiscal year ended on        March 31, 2002            March 31, 2003            March 31, 2004
Net revenues                                 880                       984                     1,043
Operating income                              78                       151                      (85)
Ordinary income                               85                       159                      (81)
Net income                                    36                        86                      (67)
Net income per share                   30,611.73                 72,393.61               (37,443.49)
(yen)
Dividend per share                         2,500                    35,800                         0
(yen)
Stockholders' equity                  391,448.50                461,342.11                379,584.58
per share (yen)


4.       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 operations

     As a result of the merger, our consolidated operating results are expected to improve as a result
     of improved business efficiency. However, our forecast for our consolidated operating results
     after the merger has not been 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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