Merger Announcement

Konami Corporation
11 April 2005


FOR IMMEDIATE RELEASE



                                                                                                         April 11, 2005


                                                                                                     KONAMI CORPORATION
                                                                             2-4-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
                                                                                                        Kagemasa Kozuki
                                                                                        Representative Director and CEO
                                                                                        Stock code number: 9766 at TSE1


                                                                                             Contact: Noriaki Yamaguchi
                                                                   Executive Vice President and Chief Financial Officer
                                                                                                   Tel: [phone]


                      Announcement: Merger of Konami and Konami Traumer



Konami Corporation ('Konami') hereby announces that resolutions of meetings of the respective Boards of
Directors of Konami and Konami Traumer, Inc., ('KT'), a consolidated subsidiary of Konami, held on April 11,
2005 decided that KT will merge with and into Konami, effective on June 1, 2005.


1. Objective of Merger


Konami will take over KT's business, including designing, manufacturing and selling toys, fancy goods and convenience
goods. Integrating KT's business into Konami's Toy & Hobby business will enable us to operate the business more
effectively and strategically than before.


2. Outline of Merger


A. Schedule of Merger
      Board approval for the merger agreement:                 April 11, 2005
      Signing of merger agreement:                             April 11, 2005
      Effective date of merger:                                June 1, 2005


B. Method of Merger
      Konami will be the surviving entity and KT will subsequently be dissolved. This merger will take
      place without the approval of a meeting of Konami's shareholders in accordance with Article
      413-3-1 of the Commercial Code.


C. Merger Ratio

     Company             Konami              KT
     Merger Ratio          1                 212


(a.) Ratio of Share allotment

212 Konami shares will be allotted for each 1 share of KT.

(b.) Basis of the merger ratio

The merger ratio was determined after consultation and negotiation between the companies based on an
evaluation and analysis of the stock prices of the companies calculated by the Market Share Price Method,
Discounted Cash Flow Method and Multiple Method.

(c.) New shares to be allotted with respect to the merger

  Konami will allot 42,400 shares presently owned as treasury stock, exchanging 212 shares of Konami for each
1 share of KT to shareholders of KT, including beneficial owners, recorded on KT's shareholder register,
including the beneficial owner shareholder register, on the date before the merger. However, Konami will not
allot any shares of Konami for the 700 shares of KT held by Konami.


D. Cash Paid for the merger


There will be no payment of cash for the merger.


3. Outline of Merging Companies


Registered name                        Konami                               KT

Main                      Production, manufacture and sales Designing, Manufacturing, Selling
                          for consumer game software,       of toys, fancy goods and
Business                  contents for amusement facility   convenience goods
                          and toys

Date of                   March 19, 1973                    March 27, 1982
incorporation

Location of head          2-4-1 Marunouchi,                 2-20-6 Okudo, Katsuhika-ku, Tokyo
office                    Chiyoda-ku, Tokyo

Representative            Kagemasa Kozuki                   Atsushi Shibuya
                          Chairman of the                   Representative Director and
                          Board and CEO                     President
                          
Capital                   47,398 million yen                142 million yen

Total number of           139,531,708                       900
shares issued

Stockholders'             108,016 million yen               259 million yen
equity
(as of March 31, 2004)

Total assets              183,031 million yen               659 million yen
(as of March 31, 2004)

Financial year end        March 31                          March 31

Number of                 904                               24
employees
(as of March 31, 2004)

Major vendors             (Vendors)                         (Vendors)
and                       Sony Computer                     Grapac. Japan Co., Inc.
customers                 Entertainment Inc.                YOSHITOKU Co., Ltd.
                          Nintendo Co., Ltd.                THE PILOT INK COMPANY, LIMITED

                          (Customers)                       (Customers)

                          Konami Marketing Japan, Inc.      Toys'R'Us-JAPAN, Ltd.
                                                            TOKYU HANDS INC.
                                                            The Loft Co., Ltd.

Major shareholders        Kozuki       10.50%               Konami      77.78%
                          Holdings
and shareholding          B.V.
                          Japan        8.32%                Atsushi     22.22%
ratios                    Trustee                           Shibuya
                          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 Mitsui                   Sumitomo Mitsui
                          Banking Corporation               Banking Corporation

Relationship between      Capital          Konami owns 77.78% issued share of KT.
                          Personnel        None
parties                   Transaction      Konami sells various toys to KT.
                                           Konami purchases various toys from KT.

                                           Konami consigns production of various toys to KT.




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)
                       KT
Fiscal year ended on        March 31, 2002            March 31, 2003            March 31, 2004
Net revenues                                 638                       569                     1,039
Operating income                               5                      (47)                        28
Ordinary income                                3                      (48)                        27
Net income                                     0                      (57)                        19
Net income per share                    1,111.06               (95,197.17)                 21,419.30
(yen)
Dividend per share                             -                         -                         -
(yen)
Stockholders' equity                  120,057.20                 24,860.02                287,992.65
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 operation

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




                      This information is provided by RNS
            The company news service from the London Stock Exchange