3rd Quarter & 9 Mths Results

Konami Corporation
21 February 2001


                   Summary of Consolidated Financial Results
     for the Third Quarter and the Nine-months Period Ended December 31, 2000


KONAMI CORPORATION
Stock Code Number: 9766
Contact: Noriaki Yamaguchi, Director    Phone [phone]

We shall announce our consolidated financial results for both the third quarter
and the nine-month period ended December 31, 2000.

(1) Results of Operation

                       Net     Operating Ordinary   Net       Net      Diluted  

                       sales   income    income     income    income   net      
                       (Y       (Y       (Y         (Y        per      income
                       million) million)  million)  million)  share(Y) per      
                                                                       share (Y)
                                                                      
Three months ended
 December 31, 2000     55,280   16,544    16,351     8,451    74.31     74.31

Nine months ended
 December 31, 2000    129,654   33,680    32,291    20,086   176.63    176.63

Year ended
March 31, 2000        146,666   30,938    31,103    18,344   328.52    326.66


(2) Financial Position

                    Total       Total         Equity-          Total
                    assets    shareholders'  assets     shareholders'
                (Y million)    Equity        ratio (%)        equity
                              (Y million)                 per share(Y)

December 31, 2000   162,167        85,053        52.5         747.80

September 30, 2000  145,321        78,782        54.2         692.76
March 31, 2000      136,080        70,844        52.1       1,246.08

(3) Cash Flows

                       Net cash provided by (used in)

                          Operating     Investing    Financing   Cash and cash 
                         activities    activities   activities     equivalents  

                         (Y million)   (Y million)  (Y million)     at the end 
                                                                    (Y million)
Three months ended 
 December 31, 2000            6,561          (892)      (4,302)      54,699

Nine months ended 
 December 31, 2000            3,301        (5,048)      (1,226)      54,699

Year ended
 March 31, 2000              31,365        12,880      (10,015)      57,365


(4) Scope of Consolidation and Application of Equity Method
     Consolidated subsidiaries:                         30 companies
     Affiliated companies applicable under equity method:2 companies

(5) Changes in Scope of Consolidation and Application of Equity Method
None

(6) Changes in Accounting Policies
None

Note: 
Financial results for the three-month and nine-month period ended December 31
have not been audited by the independent auditor.

1. Overview
During the third quarter, same as in the first half of this fiscal year, the
entertainment industry where we belong was a little sluggish due to the boom
among young people of mobile phone services such as imode and the advent of new
communication tools including CATV Internet in Japan.

Under such environment, we launched in the Christmas sale new series of
YU-GI-OH! card game by Creative Products Division and consumer-use software by
Consumer-Use Software Division, which contributed to the sales. As a result, the
consolidated sales in the third quarter was 55,280 million yen.  (129,654
million yen for the nine months).

2. Operating Results of the Divisions
In Consumer-Use Software Division, we launched in the Christmas sale 'YU-GI-OH!
DUELMONSTERS IV' for GameBoy Color.  The game is a part of 'YU-GI-OH!' series,
and a boom among mainly elementary school students, which was a major
contributor to our sales.  At the same time, the movie games such as 'The
Grinch', 'The Mummy', etc., for PlayStation, the titles of which were licensed
from Universal Interactive Studio, contributed to the sales in overseas.  As a
result, the consolidated sales of the division was 21,004 million yen in this
quarter (45,540 million yen for the nine months).

In Amusement Machines Division, we increased in Japan and Asia the sales of 'The
Policeman Shinjyuku 24 hours', the gun shooting game.  In the game, the host
character is policeman, the symbol of justice, and the game contains the new
feature, i.e., a player maneuvers the host character by moving his/her own body.
The sales in the peripheral goods of beatmania, the music simulation game, has
been solid since the last fiscal year. As a result, the consolidated sales of
the division was 4,467 million yen in this quarter (13,315 million yen for the
nine months).

In Gaming Machines Divisions, we started the delivery of video slot machine to
North America.  In addition, 'GI-LEADING SIRE Ver. 2', the large-scale
token-operated game with racing horse training simulation feature, and 'CYCLONE
FEVER', the middle-scale token-operated game famous for various graphic effects,
contributed largely to the sales. As a result, the consolidated sales of the
division was 2,294 million yen in this quarter (6,540 million yen for the nine
months).

For Pachinko Systems Division, the LCD unit for Pachinko machine that focuses on
fun of games continued to have reputation among Pachinko users. As a result, the
consolidated sales of the division was 2,489 million yen in this quarter (8,763
million yen for the nine months).

In Creative Products Division, we increased its sales largely by launching new
series of big boom 'YU-GI-OH! OFFICIAL CARD GAME DUELMONSTERS' during the
Christmas sale. As a result, the consolidated sales of the division was 23,436
million yen in this quarter (50,429 million yen for the nine months).

In Amusement Operations Division, we increased the sales in the amusement center
complexes, among which Kohoku Branch Center (Tsuzuki-ku, Yokohama) opened at the
end of the last fiscal year led in the sales. However, the sales as a whole was
stagnated, influenced by the depressed Japanese economy and the boom of mobile
phone services. In the rental game business that we started this fiscal year,
the number of the installed machines increased to 570 resulting from hit in
December of new product 'The Policeman Shinjyuku 24 hours'. As a result, the
consolidated sales of the division was 1,111 million yen in this quarter (3,594
million yen for the nine months).

In Finance and other divisions, the consolidated sales was 477 million yen in
this quarter (1,470 million yen for the nine months).

Same as in the first half of this fiscal year, sales of highly profitable card
games largely contributed to the total sales.  As a result, the consolidated
ordinary income and the consolidated net income were 16,351 million yen and
8,451 million yen respectively in this third quarter (32,291 million yen and
20,086 million yen for the nine months).

3. Condensed Consolidated Financial Statements (Unaudited)

(1) Consolidated Balance Sheets (Unaudited)
         (millions of yen)               December   31 September   30 March 31
                                             2000           2000          2000
         ASSETS
CURRENT ASSETS:
Cash and cash equivalents                 Y56,084         Y54,383      Y58,780
Trade notes and accounts     
Receivable                                  48,267         36,807       27,203
Marketable securities                            -              -            0
Inventories.                                16,069         13,545       11,393
Other current assets                         7,838          6,678        5,574
      Total current assets                 128,260        111,415      102,952

FIXED ASSETS:
Tangible fixed assets:
Buildings and structures                    10,661         10,772       11,305
Land                                         8,252          8,345        8,488
Other tangible fixed assets                  3,384          3,281        3,072
  Total tangible fixed assets               22,298         22,399       22,865
Intangible assets                            1,830          1,667        1,572
Investments and other assets                 9,778          9,838        8,228
Translation adjustments                          -              -          461
       Total fixed assets                   33,907         33,906       32,666
TOTAL                                     Y162,167       Y145,321     Y136,080

LIABILITIES, MINORITY INTEREST AND 
SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade notes and accounts     
payable                                    Y28,455       Y21,985       Y19,364
Short-term borrowings                        3,298         3,869         2,774
Current portion of long-term   
loans payable                                1,347         2,015         1,751
Current portion of bonds 
payable                                     10,000        10,000             -
Income taxes payable                         9,913         7,795        11,435
Other current liabilities                   14,209        11,227        11,319
   Total current liabilities                67,225        56,893        46,646

LONG-TERM LIABILITIES:
Bonds payable                                    -          -           10,000
Long-term loans payable                      3,261         3,366         4,788
Other long-term liabilities                  1,626         1,617         1,558
   Total long-term liabilities               4,887         4,984        16,347
MINORITY INTEREST                            5,001         4,662         2,242
SHAREHOLDERS' EQUITY:
Common stock                                15,793        15,793        15,793
Additional paid-in capital                  15,516        15,516        15,516
Retained earnings                           53,557        48,062        39,565
Unrealized holding losses 
on other investment securities                 (72)          (47)            -
Translation adjustments                        259          (527)            -
Treasury stock                                  (1)          (15)          (31)
 Total shareholders' equity                 85,053        78,782         70,844
TOTAL                                     Y162,167      Y145,321       Y136,080


(2) Consolidated Statements of Income (Unaudited)

      (millions of yen)    Three months    Nine months    Year
                              ended          ended       ended
                            December 31   December 31  March 31
                               2000          2000         2000 

NET SALES                    Y55,280      Y129,654     Y146,666
COST OF SALES                 31,495        75,502       90,755
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES        7,240        20,471       24,972
OPERATING INCOME              16,544        33,680       30,938
NON-OPERATING INCOME
 (EXPENSES)                     (193)       (1,389)         164
ORDINARY INCOME               16,351        32,291       31,103
EXTRAORDINARY INCOME (LOSSES)   (217)        3,909        3,306
INCOME BEFORE INCOME TAXES 
AND MINORITY INTEREST         16,133        36,200       34,409
INCOME TAXES                   7,305        15,347       15,650
MINORITY INTEREST                375           767          414
NET INCOME                   Y 8,451      Y 20,086     Y 18,344

(3) Consolidated Statements of Cash Flows (Unaudited)

       (millions of yen)                     Three months   Nine months   Year
                                             ended Dec 31   ended Dec 31  ended 
                                                                          March 
                                                     2000         2000       31,
                                                                           2000
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes and 
minority interest................................Y 16,133     Y 36,200 Y 34,409
Depreciation and amortization......................   696        2,059    2,788
Interest and dividend income.......................  (104)        (323)    (152)
Interest expenses..................................   177          573      724
Equity losses.....................................    160          866       44
Gain on sale of investment
in subsidiaries......................................   -       (3,947)  (8,687)
Decrease (increase) in trade
receivables.......................................(11,914)     (21,480)   3,133
Decrease (increase) in 
inventories....................................... (2,381)      (4,571)   2,470
increase in trade payables........................  7,877       10,531    3,991
Increase (decrease) in 
consumption taxes payable.........................     (5)         372      162
Other.............................................  3,081        1,708    6,603
Interests and dividends received                      127          300      145
Interests paid....................................   (123)        (475)    (723)
Income taxes paid................................. (7,162)     (18,513) (13,544)
Net cash provided by operating
activities........................................  6,561        3,301   31,365 
        

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets........................  (402)      (1,417)  (2,188)
Proceeds from sale of fixed assets                    108          451      368
Acquisition of intangible assets.................... (668)        (982)    (768)
Acquisition of investment securities                    -       (3,568)    (940)
Proceeds from sale of investment
securities............................................  6           22       70
Decrease (increase) in short-term
Loans receivable, net..............................  (105)         (67)   7,228
Other...............................................  168          512    9,109
Net cash provided by (used in)
Investing activities...............................  (892)      (5,048)  12,880

CASH FLOWS FROM FINANCING ACTIVITIES 
Increase (decrease) in short-term 
borrowings, net...................................   (809)         233   (1,709)
Proceeds from long-term debt......................... 169          172      412
Repayments of long-term debt........................ (963)      (1,979)  (2,640)
Proceeds from issuance of stock to
minority shareholders.................................  -        6,060    2,275
Dividends paid.................................... (2,957)      (5,913)  (3,560)
Dividends paid to minority 
shareholders........................................... -          (78)      (6)
Other...............................................  257          277   (4,786)
Net cash used in financing 
activities........................................ (4,302)      (1,226) (10,015)

TRANSLATION ADJUSTMENTS ON CASH 
AND CASH EQUIVALENTS................................  333         307      (390)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS.............................   1,701      (2,666)   33,839
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD..............................  52,998      57,365    23,526
INCREASE IN CASH AND CASH EQUIVALENTS
BY NEWLY CONSOLIDATED COMPANY.......................    -           -         0
CASH AND CASH EQUIVALENTS, END OF 
PERIOD........................................... Y54,699     Y54,699    Y57,365



4. Segment Information (Unaudited)

(1) Operations by Business Segment 

                    Three months ended December 31, 2000

             Consumer                         (millions of yen)
             -Use      Amusement Gaming   Packinko Creative Amusement 
             Software  Machines  Machines Systems  Products Operations 
Net sales:
To customers  Y21.004   Y4.467   Y2,294   Y2,489  Y23,436  Y1.111 
Intersegment      702      131      106       -        27       -
Total          21.707    4,598    2,401    2,489   23,463   1.111
Operating        
expenses       17,071    2,975    2,337    2,011   11,751   1,299   
Operating
Income         Y4,635   Y1,623      Y63     Y478  Y11,712    (188)

               Finance   Other    Total   Eliminations  Consolidated
                                         and Corporate
Net sales:          
To customers     Y11      Y466    Y55,280      -           Y55,280 
Intersegment      42       470      1,482    Y(1,482)
Total             54       936     56,762     (1,482)       55,280
Operating            
expenses          46       851     38,344        391        38,735
Operating         
Income            Y7       Y85    Y18,418    Y(1,873)      Y16,544



                     Nine months ended December 31, 2000

               Consumer                         (millions of yen)
               -Use      Amusement Gaming   Packinko Creative Amusement 
               Software  Machines  Machines Systems  Products Operations
Net sales:     
To customers    Y45,540  Y13,315   Y6,540   Y8,763    Y50,429   Y3,594 
Intersegment      1,510      184      307       -          62        -
Total            47,050   13,499    6,848    8,763     50,492    3,594
Operating      
expenses         39,339    9,972    6,726    6,698     25,263    3,668
Operating
income           Y7,711   Y3,527     Y121   Y2,064    Y25,228    Y(74)

               Finance   Other    Total   Eliminations   Consolidated 
                                          And Corporate
Net sales:
To customers    Y35     Y1,434    Y129,654       -       Y129,654
Intersegment    124      1,477       3,666  Y(3,666)            -
Total           160      2,911     133,320   (3,666)      129,654
Operating
Expenses        147      2,638      94,456    1,517        95,973
Operating 
Income          Y12      Y 273     Y38,864  Y(5,184)     Y 33,680


                    Year ended March 31, 2000

              Consumer                         (millions of yen)  
              -Use      Amusement Gaming   Packinko Creative Amusement 
              Software  Machines  Machines Systems  Products Operations 
Net sales:
To customers   Y61,264  Y25,334  Y12,988  Y13,178  Y27,820    Y4,503  
Intersegment     1,012      197      320       -       164        -   
Total           62,277   25,532   13,309   13,178   27,985     4,503
Operating        
expenses        46,812   20,309   12,218   10,055   16,921     4,486
Operating
Income         Y15,464   Y5,222   Y1,091   Y3,123  Y11,064      Y 17

            Finance     Other    Total     Eliminations   Consolidated 
                                            and Corporate
Net sales: 
To customers   Y69      Y1,505  Y146,666         -           Y146,666
Intersegment   171       2,730     4,596      Y(4,596)            -      
Total          240       4,235   151,263       (4,596)        146,666    
Operating            
expenses       223       3,856   114,884          843         115,727
Operating         
Income         Y16        Y378   Y36,379      Y(5,440)        Y30,938


Notes:

1. Major products and services of each division are defined as follows:

Consumer-Use Software:  Software for PlayStation, Nintendo 64,                  
                        GameBoy and Dreamcast
                        Sofware for cellular phones
                        On-line game software for the Internet

Amusement Machines:     Video game machines for amusement centers:
                        Dance-simulation, music-simulation and disc             
                        jockey-simulation game machines

Gaming Machines:        Gaming machines for Casino
                        Token-operated game machines for amusement              
                        centers

Packinko Systems:       Software with LCD units for pachinko game               
                        machine makers 
                        Packinko slot machines

Creative Products:      Card games, character goods, portable games
                        Procurement and distribution of home-use                
                        game software created by other companies

Amusement Operations:   Operations of amusement centers
                        Rental of amusement machines

2. Unallocated operating expenses included in the Eliminations and Corporate
column amounted to Y1,250 million, Y4,746 million and Y5,602 million for the
three months ended December 31, 2000, the nine months ended December 31, 2000
and the year ended March 31, 2000, respectively. They mainly consist of the
administrative expenses of the parent company.


(2) Operations by Geographic Area

                  Three months ended December 31, 2000
                                                                                
                                            (millions of yen)
                                              Eliminations
                                                  and
               Japan   Americas  Europe   Asia   Total  Corporate Consolidated
Net sales:
To customers   Y47,851  Y4,371  Y2,660    Y397  Y55,280       -      Y55,280
Intersegment     4,807      14       0       5    4,827  Y(4,827)      -
Total           52,658   4,385   2,661     402   60,107   (4,827)     55,280
Operating
Expenses        35,320   4,083   2,348     477   42,230   (3,494)     38,735
Operating
income(loss)   Y17,338    Y301    Y312    Y(75) Y17,876  Y(1,332)    Y16,544

                     
                    Nine months ended December 31, 2000
                                                            (millions of yen)
                                             Eliminations
                                                 and
                Japan  Americas  Europe  Asia    Total  Corporate  Consolidated 
Net sales:
To customers:  Y117,371  Y6,195  Y4,880 Y1,206  Y129,654         -     Y129,654
Intersegment      7,473      16       0     34     7,524   Y(7,524)           - 

Total           124,844   6,212   4,880  1,241   137,179    (7,524)     129,654
Operating
expenses         84,475   8,394   4,781  1,255    98,906    (2,933)      95,973
Operating
income(loss)    Y40,369  Y(2,181)   Y99   Y(14)  Y38,272   Y(4,591)     Y33,680


                        Year ended March 31,2000
                                                             (millions of yen)
                                             Eliminations
                                                 and
                Japan  Americas  Europe  Asia    Total  Corporate  Consolidated 

Net sales:
To customers   Y123,276  Y11,827   Y9,265  Y2,297   Y146,666     -     Y146,666
Intersegment     15,986      615        2     121     16,725  Y(16,725)     -
Total           139,262   12,442    9,267   2,418    163,391   (16,725) 146,666
Operating
Expenses        101,626   13,444    8,999   2,082    126,152   (10,424) 115,727
Operating
income(loss)    Y37,636  Y(1,001)    Y267    Y336    Y37,239   Y(6,300) Y30,938


Notes:
1. Geographic areas are categorized by geographical proximity.
2.  Each overseas segment consists of the following countries:
    Americas: United States of America etc
    Europe: United Kingdom, Germany and France
    Asia: Hong Kong, Singapore and Korea
3. Unallocated operating expenses included in the Eliminations and Corporate
column amounted to Y1,250 million, Y4,746 million and Y5,602 million for the
three months ended December 31,2000, the nine months ended December 31, 2000 and
the year ended March 31, 2000, respectively.  They mainly consist of the
administrative expenses of the parent company.

(3) Overseas Sales

                    Three months ended December 31,2000
                                                  (millions of yen)
                       Americas    Europe     Other       Total 
Overseas sales           Y4,597     Y2,723     Y761       Y8,083
Consolidated sales            -        -         -        55,280
Overseas portion 
 in consolidated sales   8.3%        4.9%     1.4%        14.6%
                   

                Nine months ended December 31,2000
                                                 (millions of yen)
                      Americas    Europe    Other       Total 
Overseas sales          Y6,546    Y4,870    Y2,570     Y13,986
Consolidated sales           -        -          -     129,654
Overseas portion 
in consolidated sales   5.0%      3.8%       2.0%      10.8%


                          Year ended March 31,2000

                                                (millions of yen)
                      Americas    Europe    Other       Total 
Overseas sales          Y12,586    Y8,582    Y6,679    Y27,848
Consolidated sales            -        -          -    146,666
Overseas portion 
in consolidated sales     8.6%      5.8%      4.6%      19.0%


Notes: 

1. Geographic areas are categorized by geographical proximity.
2. Each overseas segment consists of the following countries:
    Americas: United States of America, Canada, etc.
    Europe: United Kingdom, Germany, France, etc.
    Other: Hong Kong, Singapore, Australia, etc.
3. Overseas sales represent the sales outside Japan of the Company and its
consolidated subsidiaries.