Restructure Proposals

Konami Corporation
07 November 2005

                                                                November 7, 2005

FOR IMMEDIATE RELEASE



                                                              KONAMI CORPORATION

                                                                 Kagemasa Kozuki

                                                   Chairman of the Board and CEO

                                                             Ticker 9766 at TSE1



                                                  Konami Sports Life Corporation

                                                                  Fumiaki Tanaka

                                                           Chairman of the Board



                                                       Konami Sports Corporation

                                                                Toshimitsu Oishi

                                           Representative Director and President

                                                             Ticker 4643 at TSE1







Announcement of group restructuring (merger between subsidiaries, share exchange
                           with surviving subsidiary)

          and shift to holding company structure by company separation



KONAMI CORPORATION (hereafter referred as 'Konami'), Konami Sports Life
Corporation (hereafter referred as 'Konami Sports Life') and Konami Sports
Corporation (hereafter referred as 'Konami Sports') hereby announce that their
respective Boards of Directors' decided through resolutions at meetings held on
today, November 7, 2005, to merger Konami Sports Life into Konami Sports and to
effect share exchange between the new Konami Sports, and have executed a basic
agreement among the three companies as parties thereto. Konami Corporation will
also shift to a holding company structure by separating its digital
entertainment business into a newly formed wholly owned subsidiary.

The above transactions are subject to the approval of the respective proposals
in extraordinary shareholders' meetings which will be held on January 26, 2006.



I.        Merger of Konami Sports Life into Konami Sports and turning Konami
Sports into a wholly owned subsidiary of Konami by share exchange



1.       Objective



It is expected the multiple needs of the Health & Fitness service industry will
expand as the population ages, birth rates decline and people become more
health-conscious. To meet the changes in the current environment, we plan to
merge Konami Sports, which operates sports clubs, and Konami Sports Life, which
provides health and fitness products and services, to create new markets and
provide more kinds of health and fitness services.  In addition, we plan to turn
Konami Sports into a wholly owned subsidiary of Konami by share exchange to
allocate management resources properly, speed up management decisions and
maximize shareholder value.



2.       Method of merger and share exchange

(1)    The merger of Konami Sports Life and Konami Sports (hereafter referred as
'this merger') will be by absorption in which Konami Sports will be the
surviving company and Konami Sports Life will be the dissolved company.

(2)    The effectiveness of this merger is conditioned on Konami and Konami
Sports executing share exchange, in which Konami will become the complete parent
company and Konami Sports will become the wholly owned subsidiary.



II.     Shifting to holding company structure by company separation



1.       Aim of shifting to holding company structure



The Konami group will endeavor to increase enterprise value and shareholder
value and fulfill the social responsibility of the Konami group by achievement
of the main aims provided below under the new holding company structure.



(1)    Improving management transparency

Konami group will endeavor to strengthen group governance through taking this
opportunity to shift to a holding company structure, to build on the work on
corporate governance we have done actively until now.

We will pursue management transparency by further strengthening of our group
management structure, separating the decision and supervision functions of the
group, delineating the execution function in each business clearly, speeding up
our management decision making, and executing business evaluation and allocating
management resources from our shareholders' point of view.

(2)    Creating a speedy and flexible management structure.

We will make clear the position within our group that each of the Digital
Entertainment Business, Health & Fitness Business and Gaming & System Business
have within our group and try to respond more speedily and flexibly to change in
each business environment, with each of our group companies pursuing its area of
specialty and creativity in each business area. In addition, we will try to
create a structure that can execute business tie-ups, capital acquisitions and
other activities more quickly. (*1)

(3)    Creating a complete profit responsibility structure.

We will make our profit responsibility structure clear by assessing the
profitability of each business more completely.

The holding company will have functions of planning the corporate strategy of
the entire group, planning for investment projects through the allocation of
management resources and checking the status of business execution within each
subsidiary. Business subsidiaries will make timely and speedy decisions in each
company's business area. Thus, we will aim to maximize our business values at
the Konami group level.



(*1) Gaming segment changed its name to Gaming & System segment on October 1,
2005.





2.       Method of shifting to holding company structure

The shift to the new holding company structure will be by company separation,
with Konami separating and becoming a holding company, and a newly established
wholly owned subsidiary, Konami Digital Entertainment Co., Ltd. (hereafter
referred as 'Konami Digital Entertainment') succeeding, the Digital
Entertainment business.





3.       New structure after shifting to holding company structure





(Structure now)










(Structure after shifting to holding company)








4.       Corporate profiles after shifting to holding company structure.

(1)    KONAMI CORPORATION

i             Main Business

Planning and execution of management strategies to improve the profitability of
the entire group , as well as the management of business execution within each
subsidiaries.

ii           Head office location

2-4-1, Marunouchi, Chiyoda-ku, Tokyo, Japan

iii          Representative

Chairman of the Board   Kagemasa Kozuki (Formerly Konami's Chairman of the
Board)

iv         Capital            47,399 million yen

v           Total Assets    Undecided



(2)    Konami Digital Entertainment Co., Ltd.

i             Main Business

Planning, production, manufacturing and distribution of online games, computer &
video games, amusement machines, toys, card games, contents for mobile phone,
music, image software, books, and magazines.

ii           Head office location

6-10-1, Roppongi, Minato-ku, Tokyo, Japan


iii          Representative

Representative Director and President   Fumiaki Tanaka (Former Konami's
Executive Corporate Officer)

iv         Capital            Undecided

v           Total Assets    Undecided



(3)    Konami Sports & Life Corporation (Formerly Konami Sports Corporation)

i             Main Business

Operation of sports clubs.

Development, manufacturing and sales of health and care support machines and
health and   care support goods.

Providing health service and prevention of care.

ii           Head office location

4-10-1, Higashi-Shinagawa, Shinagawa-ku, Tokyo, Japan

iii          Representative

Representative Director and President   Toshimitsu Oishi (Former Konami Sports'
Representative Director and President)

iv         Capital            5,040 million yen

v           Total assets     Undecided



* Former Konami Sports Life Corporation is expected to be dissolved after the
merger.



III.   Schedule

The holding company structure will take effect on March 31, 2006, following the
resolutions at the Boards of Directors' meeting approving the basic agreement
today on November 7, 2005, resolution at the Boards of Directors' meeting
approving the final contract and preparation of separation planning documents on
January 5, 2006, and approval resolution of extraordinary shareholders' meetings
of each company on January 26, 2006 approving the transaction..



IV.   Procedure summary



1.       Summary of company separation



Schedule of separation (planned)

January 5, 2006     Boards of Directors' meeting for preparation of separation
planning documents

January 26, 2006   Extraordinary shareholders' meetings for approval of
separation planning documents

March 31, 2006     Date of separation



Method of separation

The method to be used will be a company separation, with Konami as the
separating company and a newly established Konami Digital Entertainment as the
succeeding company.



2.       Outline of the merger

(1)    Schedule of merger (planned)

January 5, 2006    Board of Director's meeting to approve the resolution of the
                   basic agreement

January 26, 2006   Extraordinary shareholders' meeting for approval of merger
                   contracts

February 28, 2006  Date of merger



(2)    Method of Merger

Konami Sports will be the surviving company and Konami Sports Life will
subsequently be dissolved.



(3)    Merger ratio
     Registered name             Konami Sports Corporation           Konami Sports Life Corporation

                                    (Surviving company)                   (Dissolving company)
       Merger ratio                          1                                    3.99



<1>Share allotment ratio

3.99 shares of Konami Sports will be allotted to 1 share of Konami Sports Life.



<2>Basis for the determination of merger ratio

The calculation of the merger ratio was conducted by Nikko Cordial Securities
Inc., ('Nikko') independently and reasonably based on each subject company's
request.

Nikko calculated the range of the merger ratio using adjusted a net asset method
for Konami Sports Life and the market share price method and the DCF method
(Discounted Cash Flow method) for Konami Sports.

The merger ratio was agreed after consideration and negotiation between the
subject companies based on the above evaluations.

However, this merger ratio may be changed after discussions between the subject
companies in the event material changes in the basis of calculation occur.



<3>Number of shares to be allotted with respect to the merger

Konami Sports will allot 15,760,500 shares of its common stock held as treasury
stock, which includes 15,457,741 shares that will be succeeded from Konami
Sports Life, to Konami as a shareholder of Konami Sports Life.




<4>Cash paid due to merger

Cash will not to be paid for this merger.



3.       Summary of share exchange



(1)    Share exchange schedule (planned)

January 5, 2006    Board of Director's meetings to approve execution of the
                   share exchange agreement

January 26, 2006   Extraordinary Shareholders' meetings for approval of share
                   exchange agreement

February 23, 2006  Date of delisting of Konami Sports

March 1, 2006     Date of share exchange



(2)    Share exchange ratio

     Registered name                Konami Corporation                 Konami Sports Corporation

                                  Complete parent company              A wholly owned subsidiary
   Share exchange ratio                      1                                    0.79



<1>Share allotment ratio

0.79 shares of Konami will be allotted to 1 share of Konami Sports. However,
there will be no share allotment for Konami Sports' shares that will be allotted
to Konami upon the merger between Konami Sports and Konami Sports Life.



<2>Basis of calculation of share exchange ratio

The calculation of share exchange ratio was conducted by Nikko independently and
reasonably based on each subject company's request.

Nikko calculated the range of the share exchange ratio using the market share
price method and the DCF method for Konami Corporation and Konami Sports.

The share exchange ratio was agreed after consideration and negotiation between
the subject companies based on the above evaluations.

However, this share exchange ratio may be changed after discussions between the
subject companies in the event material changes in the basis of calculation
occur.



<3>Number of shares to be allotted with respect to the share exchange

Konami will allot a total of 9,898,911 shares of its common stock, including
4,024,078 shares and 5,874,833 shares held as treasury stocks.



<4>Cash paid due to share exchange

Cash will not to be paid for this share exchange.



<5>Change of registered name

After the share exchange has been executed, Konami Sports will change its
registered name to Konami Sports & Life Corporation, on March 31, 2006.



V.       (For your reference) Dividend payment and coupon tickets for
shareholders



1.       Year end dividend for shareholders of Konami Sports



Since the shareholders of Konami Sports will become shareholders of Konami by
this share exchange effective March 1, 2006, these shareholders will be eligible
for any year - end dividends paid by Konami.





For a shareholder owing 1,000 shares of Konami Sports, amount of dividend
payment calculated after the exchange is as follows,



Before this transaction:

15 yen/share  ---> holding 1,000 shares:  15,000 yen



After share exchange:

Share exchange ratio 0.79  a  1,000 shares x 0.79 = 790 shares

End of year dividend of Konami: 27 yen/share x 790 shares = 21,330 yen (6,330
yen gain)



2.       Coupon tickets for the shareholders of Konami Sports



Coupon tickets will be given to the shareholders of Konami Sports as of February
28, 2006 continuously.



3.       Coupon tickets for the shareholders of Konami



The coupon tickets will also be given to the shareholders of Konami, who hold
over 100 shares from April 2006 as follows;

4 coupons for the year , or 2 coupons each half a year will be given

Available in all Konami Sports Clubs that we operate

Available for 2 persons per 1 coupon

Available for shareholders as of the end of September 2006






VI.   Outline concerning company

(1)  Registered     KONAMI                           Konami Sports        Konami Sports Life
     name
                    CORPORATION                       Corporation            Corporation

                      As of September 30, 2005    As of September 30,    As of September 30,
                                                          2005                   2005
(2)  Main business  Planning, production, and    Operating fitness      Developing,
                    distribution of computer &   clubs, swimming        manufacturing and
                    video games,  amusement      schools, gymnastic     sales on fitness and
                    machines, toys, card games,  schools and other      care support machines
                    online games, contents for   relating business.     and fitness and care
                    mobile phone, music, image                          support goods.
                    software, books, and
                    magazines.


(3)  Date of               March 19, 1973            March 14, 1973       December 16, 1975
     incorporation
(4)  Head office         2-4-1, Marunouchi,             4-10-1,                4-10-27,
     location            Chiyoda-ku, Tokyo         Higashi-shinagawa,     Higashi-shinagawa,
                                                  Shinagawa-ku, Tokyo
                                                                         Shinagawa-ku, Tokyo
(5)  Representative Kagemasa Kozuki, Chairman of   Toshimitsu Oishi,       Fumiaki Tanaka,
                         the Board and CEO           Representative
                                                 Director and President Chairman of the Board
(6)  Capital             47,399 million yen        5,040 million yen      15,050 million yen
(7)  Total number        139,531,708 shares        28,290,768 shares       3,950,000 shares
     of shares
     issued
(8)  Shareholders'      149,486 million yen        11,368 million yen     30,630 million yen
     Equity
(9)  Total assets       203,217 million yen        48,719 million yen     32,329 million yen
(10) Financial year           March 31                  March 31               March 31
     end
(11) Number of            1,960 employees           1,507 employees          80 employees
     employees
(12) Major venders  (Suppliers)                  (Suppliers)            (Suppliers)
     and customers
                    Sony Computer Entertainment  Konami Sports Life     Konami Corporation
                    Inc.
                                                 (Purchasers)           Japan Beverage Inc.
                    Nintendo Co., Ltd.
                                                 Individual member,     (Purchasers)
                    (Purchasers)                 Corporate member
                                                                        Konami Sports
                    Konami Digital Entertainment
                    Inc.
(13) Major          Kozuki Holding         9.69% Konami          54.64% KONAMI         100.00%
     shareholder's  B.V.                         Sports Life            CORPORATION
     and                                         Corporation
     shareholding   Kozuki                 9.69% Japan            2.45%
     ratios         Foundation For               Trustee
                    Sports and                   Bank of
                    Education                    Japan, Ltd.
                    The Master Trust       7.46%
                    Bank of Japan,
                    Ltd,                         Konami           1.50%
                                                 Spots
                    Japan Trustee          7.46% Employee
                    Bank of Japan,               Stock
                    Ltd.                         Purchase
                    KONAMI                 6.61% Association
                    CORPORATION
(14) Main banks     Sumitomo Mitsui Banking      Bank of                Sumitomo Mitsui
                    Corporation                  Tokyo-Mitsubishi Ltd.  Banking Corporation



(15) Relationship among concerning company


Capital                Konami owns 100% of the issued shares of Konami Sports Life. Konami Sports Life owns
                       54.64% of the issued shares of Konami Sports.
Personnel              The chairman of the board of Konami Sports also serves as director of Konami.

                       The chairman of the board of Konami Sports Life also serves as executive corporate
                       officer of Konami and director of Konami Sports.

                       The president of Konami Sports also serves as President of Konami Sports Life.
Transactions           Konami Sports Life consigns the production of fitness machines to Konami.

                       Konami Sports purchases fitness machines and health related goods from Konami Sports
                       Life.



(16) Results for the last three fiscal years

(1)    KONAMI CORPORATION
                                                                                      (Unit: million yen)
                               Non-consolidated                              Consolidated
   Fiscal Year    March 31,   March 31, March 31,  September   March 31,   March 31, March 31, September
                     2003        2004      2005    30, 2005       2003        2004      2005    30, 2005
    Net sales         130,186   146,654   134,117      51,016      253,657   273,412   260,691    111,870
    Operating          11,577    13,303     4,261       5,179     (21,870)    40,713    28,136      7,462

     income
    Ordinary           13,068    16,910    13,447       9,408     (22,096)    40,107    27,442     14,335

     income
   Net income        (11,284)    10,381    12,794      11,197     (28,519)    20,104    10,486      6,964
   Net income         (92.82)     83.71    105.33       85.93     (234.58)    166.86     87.41      53.45

    per share
 Annual dividend        54.00     54.00     54.00       27.00            -         -         -          -
    per share                                       (interim)
  Shareholders'        872.38    894.08    931.24    1,147.20       750.35    847.66    885.97   1,027.32

equity per share



(2)    Konami Sports Corporation
                                                                                   (Unit: million yen)
                               Non-consolidated                            Consolidated
   Fiscal Year     March 31, March 31, March 31,  September  March 31, March 31, March 31,  September
                      2003      2004      2005    30, 2005      2003      2004      2005    30, 2005
    Net sales         66,682    76,486    77,380      39,946    75,149    77,511    78,026      40,115
    Operating          2,944     5,023     4,412         963     3,220     5,063     4,451         960

      Income
     Ordinary          2,791     4,738     3,965         833     3,002     4,771     4,003         827

      income
    Net income           950     1,157     1,204         301       933     1,155     1,216         291
    Net income         34.67     43.81     48.08       12.50     34.05     43.71     48.59       12.07

    per share
 Annual dividend       45.60     30.00     30.00       15.00         -         -         -           -
    per share                                      (interim)
  Shareholders'       572.44    545.43    473.20      471.12    578.43    551.92    480.59      478.08

 equity per share



(3)    Konami Sports Life Corporation
                                                          (Unit: million yen)
                                           Non-consolidated
      Fiscal Year         March 31,    March 31,    March 31,   September 30,
                             2003         2004         2005          2005
       Net sales               14,135        7,222        5,043         2,158
       Operating                  585        (157)        (705)          (42)

         income
        Ordinary                  475          425        (242)           190

         income
       Net income                 239          223        (253)           152
       Net income              101.24        56.60      (64.09)         38.45

       per share
  Annual dividend per               -            -            -             -
         share
     Shareholders'            7723.64     7,780.25     7,716.16      7,754.60

    equity per share

Note: There is no consolidated financial statement for Konami Sports Life
Corporation



VII. Future forecast after shifting to holding company structure

Forecasts for non-consolidated and consolidated operating results after company
separation, merger and share exchange will be released as soon as they are
determined.




Contact us

        KONAMI CORPORATION               Konami Sports Corporation
          Chiaki Nakajima                     Yuri Matsumoto

General Manager of Public Relations General Manager of Public Relations
            Department                          Department

           03-4332-0573                        03-6688-0573








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