Investment in Subsidiary

Konami Co Ltd
7 September 2000

ANNOUNCEMENT OF SIGNIFICANT FINANCIAL IMPACT


We would like to announce an event, which has a significant impact on our
consolidated financial statements for the semiannual fiscal period ended
September 30, 2000.

1. Details of the event

On August 29, 2000, KCE Tokyo, Inc. , a consolidated subsidiary completed its
initial public offering  in Japan as follows:

Date  of  the event: August 29, 2000
Name of the subsidiary: KCE Tokyo, Inc.
Number of new shares issued: 2,000,000 shares (Par value common stock)
Par value: 50 yen
Issue price: 3,200 yen per share

2. Financial impact due to the event

As a result of the event above, Konami Corporation expects significant gain
from the revaluation of interest in subsidiary, which should be recognized as
extraordinary income on the consolidated statement of income for the
semiannual fiscal period ended September 30, 2000.
Estimated amount of the gain is approximately 3,800 million yen.