Share Transfer and Merger

Konami Corporation
13 March 2003


FOR IMMEDIATE RELEASE


                                                                  March 13, 2003

                                                              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]


               Subsidiary Share Transfer and Subsequent Merger

Konami Corporation ('Konami') hereby announces that its Board of Directors
decided on March 13, 2003 to transfer all the shares of its wholly-owned
subsidiary, Konami Computer Entertainment Studios, Inc. ('Konami Studio'), to
another subsidiary, Konami Computer Entertainment Osaka, Inc. ('Konami OSA'),
and merge Konami OSA with Konami Studio on May 1, 2003.



1.       Outline of Subject Company


Trade name:                    Konami Computer Entertainment Studios, Inc.
Location of head office:       4-1-23 Shiba, Minato-ku, Tokyo
Representative:                Kazumi Kitaue, Representative Director and President
Date of incorporation:         March 28, 1997
Main field of business:        Production of video game software
Date of settlement:            March 31
Number of employees:           139 (as of September 30, 2002)
Capital:                       300 million yen
Net revenues:                  1,393 million yen (for the year ended March 31, 2002)


2.       Transfer of Stock


Transaction:                    Konami transfers all the issued shares 
                               (6,000 shares) of Konami Studio
                                to Konami OSA.
Date of transfer:               March 13, 2003


3.       Transfer Price

2,000 million yen





4.       Schedule of Merger

Board approval for merger agreement:           March 13, 2003
Conclusion of merger agreement:                March 13, 2003
Effective date of merger:                      May 1, 2003 (Tentative schedule)
Official registration of merger:               May 1, 2003 (Tentative schedule)


5.       Method of Merger



Konami OSA, as an ongoing concern, will absorb Konami Studio, which will be 
subsequently dissolved.






6.       Merger Ratio



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






7.        Objective of Merger



To enhance product lineup by adding Konami Studio's leading video game content
derived from TV animation programs and cartoons to sports games, which are
Konami OSA's major focus. As a result, we expect to achieve more stable
management of the new company after the merger and that the group value as a
whole will be maximized.


8.  Outline of Parties (as of September 30, 2002)


Trade name                 Konami Computer Entertainment      Konami Computer Entertainment

                            Osaka, Inc.                        Studios, Inc.

Main field of business     Production and distribution of     Production of video game software
                            video game software

Date of incorporation      April 3, 1995                      March 28, 1997

Location of head office    2-5-25 Umeda, Kita-ku, Osaka       4-1-23 Shiba, Minato-ku, Tokyo

Representative             Kuniaki Kinoshita,                 Kazumi Kitaue,
                           Representative Director and        Representative Director and President
                           President

Capital                    1,213 million yen                  300 million yen

Total number of shares
 issued                    14,941,500 shares                  6,000 shares

Shareholders' equity       5,898 million yen                  140 million yen

Total assets               8,378 million yen                  1,384 million yen

Date of settlement         March 31                           March 31

Number of employees        299                                139

Major customers            Konami Corporation                 Konami Corporation

Major shareholders and     Konami Corporation          65.23% Konami Computer Entertainment
 shareholding ratios       Employees' stock                    Osaka, Inc. 100%                                    
                            ownership                   3.09%
                           UFJ Trust Bank Limited       0.49% (as of March 13, 2003)
                           Masahiko Takeda              0.46%
                           The Master Trust Bank
                            of Japan, Ltd.              0.41%

Main banks                 Sumitomo Mitsui Banking
                            Corporation
                           Bank of Tokyo-Mitsubishi, Ltd.

Relationship between       Capital           Konami Studio is a wholly-owned subsidiary of
 parties                                      Konami OSA effective March 13, 2003.
                           Personnel         There is a director (corporate auditor) with
                                              concurrent status.
                           Transaction       There is no material transaction.


9.        Financial results for the three most recent years


                                                                               (Millions of yen, except per share data)


                    Konami Computer Entertainment            Konami Computer Entertainment

                    Osaka, Inc.                               Studios, Inc.
Fiscal year           March 31,    March 31,     March 31,   March 31, 2000  March 31,    March 31,
 ended on               2000          2001         2002                         2001         2002

Net revenues                3,485        6,515         8,740            645        1,365        1,393

Operating
 income                     1,295        1,698         1,952            171          427        (209)

Ordinary
 income                     1,255        1,712         1,959            170          427        (211)

Net income                    677          917         1,158            170          365        1,075

Net income per
 share (yen)               71,172       15,354           194         28,466       60,843      179,273

Dividend per
 share (yen)               20,500        4,620            78              -        2,500            -

Shareholders'
equity per
 share (yen)              402,007       78,989           930          6,063      137,239       25,269


Notes:

1.        Konami Computer Entertainment Studios, Inc. is the name of the company formed from the merger of Konami
Computer Entertainment Yokohama, Inc. and Konami Computer Entertainment Sapporo, Inc. on August 1, 2000.

2.        HUDSON SOFT CO., LTD. succeeded a portion of the business located in Sapporo of Konami Studio by the method
of absorption following a spin-off on December 1, 2001.

3.        Konami OSA split each share with par value of 50,000 yen into six shares with par value of 10,000 yen on
April 3, 2000.

4.        Konami OSA made a 100-for-1 stock split on February 1, 2002.

5.        Konami OSA made a 2.5-for-1 stock split on May 20, 2002.




10.    Circumstances after Merger


Trade name:                              Konami Computer Entertainment Studios, Inc.
                                         (A change is scheduled to be proposed at the general meeting of
                                         shareholders in June 2003.)

Main field of business:                  Production and distribution of video game software

Location of head office:                 Minato-ku, Tokyo
                                         (A change is scheduled to be proposed at the general meeting of
                                         shareholders in June 2003.)

Representative:                          Kuniaki Kinoshita,
                                         Representative Director and President

Capital:                                 1,213,050,000 yen (No capital increase)

Total assets:                            9,762 million yen
                                         (An increase of 1,384 million yen is expected as a result of
                                         the merger according to the results as of September 30, 2002)

Date of settlement:                      March 31

Total number of shares issued:           14,941,500 shares




11.        Effect on business results



As a result of this share transfer, a gain of approximately 1,800 million yen
will be incurred by Konami on a non-consolidated basis. However, there is no
material effect on Konami's consolidated business results.






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