Re Agreement

Konami Corporation
26 July 2001

     

          Announcement of the Strategic Business Alliance of 
              KONAMI CORPORATION and HUDSON SOFT CO. LTD, 
                    including a Capital Tie-up

          The enhancement of total group capability and the establishment 
          of a firm foundation in the industry with the participation of 
                       HUDSON into KONAMI Group

KONAMI CORPORATION ('KONAMI') and HUDSON SOFT CO.,LTD. ('HUDSON') are pleased to
announce that the both companies have reached an agreement HUDSON succeed to a
portion (being the entire business located in Sapporo, 'KONAMI STUDIO Sapporo')
of the business of KONAMI's subsidiary, Konami Computer Entertainment Studios,
Inc. ('KONAMI STUDIO') by the method of absorption following a spin-off as
described below, In addition, KONAMI and HUDSON have agreed on a strategic
business alliance including a capital tie-up (KONAMI is to acquire shares of
HUDSON through a third-party allotment of shares) as described below.

It is well known that in the consumer-use software industry, the competition
among makers is becoming extremely tough these days. Thus, the worldwide
realignment of the industry has already started and numerous types of
consolidations are taking place. In response to this climate, we aim at the
following synergy effects by welcoming HUDSON into the KONAMI group.

1.   The Purpose of the Strategic Capital and Business Alliance between KONAMI  
     and HUDSON

(1)  Enhancement of Group Capability

We aim at the enhancement of total group capability and the establishment and
further expansion of a firm foundation in the industry through the integration
of KONAMI STUDIO Sapporo into HUDSON, mutual utilization of technology and
contents, and the joint acquisition of major contents.

(2)  Cooperation in the Strategic Business Field

We aim at the synergy effects in the strategic business fields such as On-Line
and Mobile game, other strategic business fields than consumer-use game
software.

(3)  Mutual Utilization of Management Resources and Know-how

HUDSON can utilize not only KONAMI's already developed domestic distribution
network but also various development support functions and financial resources.
Further, HUDSON can apply KONAMI's management know-how.


2.  Concrete Plans of the Strategic Alliance

(1) Integration of KONAMI STUDIO Sapporo into HUDSON / Birth of a Worldwide     
    Studios in Hokkaido

With the integration of KONAMI STUDIO Sapporo, HUDSON can enhance its capability
and make a remarkable improvement of product line-ups and contents. It is
expected that the Hokkaido based world-wide studios will be born in the group,
supported by sufficient creative staff and collectively fused know-how.

(2) Mutual Utilization of Software Development Technology

Both KONAMI and HUDSON mutually utilize each technology and develop software
efficiently.

(3) Joint Acquisition of Major Contents / Mutual Utilization of Contents

It is becoming more important to acquire the power contents in the industry.
Both KONAMI and HUDSON will acquire power contents in cooperation and mutually
utilize them in our respective expertise. Further by mutually utilizing KONAMI
contents such as baseball, soccer, K-l and HUDSON's contents, we can provide
rich line-ups of products.

(4) Mobile Games

HUDSON is a top-class mobile contents developer in Japan and has stored
sufficient know-how for developing next-generation mobile phones, going ahead of
other companies. Through the combination of such technical capability of HUDSON
and the characters and licenses held by KONAMI, our group will provide unique
mobile contents to the world markets. It is also expected that operating costs
will be reduced due to the integration of the server.

(5) On-Line Games

It is anticipated that in the near future on-line games will produce a very
large market. Realizing the importance of this market, both KONAMI and HUDSON
have already taken the business development for the future. With this alliance,
we will integrate the contents of the HUDSON site into KONAMI Online and start
co-site operations. We aim to make it as the leading on-line game site with
better contents in quantity and quality.

(6) Out-Sourcing Development of KONAMI Products to HUDSON (HUDSON RSD Business)

To date, HUDSON has already been entrusted, on a subcontract basis, to develop
other brand software in addition to its own brand software, due to its
reputation for high level of technical capability. With this alliance, HUDSON
will also start to develop KONAMI products. In consequence, this will help
KONAMI expand its development capability and strengthen its line-ups and also
HUDSON for stable management of operations.

(7) Business Expansion to other Fields

KONAMI has expanded its entertainment business, such as amusement machine and
creative products, in addition to the game software business. HUDSON'S powerful
contents will be utilized in an effective manner in each of these various
businesses. Card games are now one of the most important businesses for KONAMI.
The same business is conducted by 'Miraibachi Karuta Shokai' in HUDSON group.
Therefore, we will have a business alliance and seek for synergy effects for the
two companies.

(8) Sales of HUDSON Products through KONAMI's Distribution Network

KONAMI established so-called 'Major Business' in February of 1999, which handles
to buy other company's software and sell them through leading KONAMI
distribution network. By handling HUDSON's products by 'Major Business', it is
expected that efficient and effective distribution of HUDSON's software will be
achieved. In addition, we will conduct promotion activities such as jointly-held
sales events.

(9) Common Utilization of KONAMI Group Development Support Companies

KONAMI Group has a number of related development support companies such as
Konami Computer Entertainment School, Inc. (for the development of talented
creative staff), Roppongi Monitoring Center. Inc. (for the quality test services
of software) and Konami Software Shanghai, Inc. (for the software development on
a subcontract basis). These companies will support HUDSON and strengthen its
development capabilities.

(10) Enhancement of Financial Capability by third Party Allotment for Capital   
     Increase

KONAMI will support to strengthen HUDSON'S financial capability by third party
allotment for capital increase, which will enable HUDSON to take more aggressive
management. Based on sufficient investment of capital into development, HUDSON's
powerful contents such as Bomber Man, Momotaro Dentetsu and so forth will be
recreated.

Both companies will determine the timing of the implementation of the
above-mentioned business alliance.

3. Incentives to the Management and Employees of the Integrated Company

In order to realize the quick effects of integration between HUDSON and KONAMI
STUDIO Sapporo, performance appraisal system and stock option system will be
studied to be adopted for the new company.

(Inquiry)                           
KONAMI CORPORATION. Public Relation Department 
4-3-1 Toranomon, Minato-ku, Tokyo 
Tel: [phone] 
Fax: [phone]  
http://www.konami.com/

HUDSON SOFT CO.,LTD. Public Affairs Relations, Management Planning Division
Sankei Building, 1-14, Hiragishi Nijo 6-chome, Toyohira-ku, Sapporo 
Tel: [phone] 
Fax: [phone] 
http ://www.hudson.co.jp/


To All Concerned Persons

KONAMI CORPORATION
Kagemasa Kozuki, President and Representative Director
(Code No. 9766 Tokyo, Osaka SIN, LON Stock Exchanges)
(For Inquiries) Noriaki Yamaguchi, 
Representative Director and Chief Financial Officer 
TEL: [phone] (Reception)

The HUDSON Building, 4-22, Hiragishi Sanjo
5-chome, Toyohira-Ku, Sapporo

HUDSON SOFT CO.,LTD.
Hiroshi Kudo, President and Representative Director
(Code No. 4822 Osaka NASDAQ Japan)
(For Inquiries) Naoyuki Tsuji, Managing Director 
TEL: [phone] (Reception)

                    
                              Announcement of 
                     absorption of a portion of the business of 
           KONAMI Computer Entertainment Studios, Inc. by HUDSON SOFT CO.LTD    
                           following a spin-off and
             capital increase of HUDSON SOFT CO.,LTD., by third party
                    allotment of shares to KONAMI CORPORATION.


KONAMI CORPORATION ('KONAMI') and HUDSON SOFT CO.,LTD. ('HUDSON') are pleased to
announce that the both companies have reached an agreement HUDSON succeed to a
portion (being the entire business located in Sapporo, 'KONAMI STUDIO Sapporo')
of the business of KONAMI's subsidiary, Konami Computer Entertainment Studios,
Inc. ('KONAMI STUDIO') by the method of absorption following a spin-off as
described below. In addition, KONAMI and HUDSON have agreed on a strategic
business alliance including a capital tie-up (KONAMI is to acquire shares of
HUDSON through a third-party allotment of shares) as described below.

We inform that the basic written agreement was approved regarding the capital
and business alliance of KONAMI and HUDSON as well as the absorption following a
spin-off of KONAMI STUDIO at a meeting of the board of directors of each company
held today.

I.      Concerning the Basic Agreement

1.      Details of the Basic Agreement

(1)     Regarding the Strategic Business Alliance

        KONAMI and HUDSON will undertake a strategic business alliance in       
        various fields based on the spin-off and capital increase through third-
        party allotment of shares as mentioned below.

(2)     Regarding the Spin-Off

        On December 1, 2001 HUDSON is expected to succeed to the Sapporo        
        business of KONAMI's subsidiary, KONAMI STUDIO through the method of    
        absorption following a spin-off. The shareholders of KONAMI STUDIO      
        shall, on the date of the spin-off, receive allocations of HUDSON shares
        thereby becoming shareholders of HUDSON. The number of HUDSON shares to 
        be allocated will be 1,768,000 in the aggregate.

(3)     Regarding the Issue of New Shares through Third Party Allotment 

        HUDSON shall issue 5,606,000 new shares of stock to KONAMI.

II.     Spin-Off

1.      Details of the Portion of Business to be Succeeded by HUDSON

(1)     Details of the Portion of Business to be Succeeded by HUDSON

        All sections and all assets, whether tangible or intangible, including  
        software and intellectual property, relating to the consumer software   
        business located in Sapporo.

(2)     Description of the Sections of Business to be Succeeded 

        To be disclosed at the time the spin-off is implemented.

(3)     Allocee and Number of Shares to be Issued
     
        To be allocated in proportion to the number of shares of KONAMI STUDIO  
        held by KONAMI CORPORATION and Konami Capital, Inc.

2.      Reason for Spin-Off

        This transaction is an integral part of a strategic business alliance   
        between KONAMI and HUDSON for deepening their cooperative relationship  
        and expecting the future growth of both companies.

3.      Company Allocation Schedule

        After July, 26            Draft up of Spin-Off Agreement
        September, 3, 2001        Board Meeting to Approve Spin-Off
        September 3,2001          Conclusion of Spin-Off Agreement
        October 22, 2001          Extraordinary Shareholders Meeting to
                                  Approve Spin-Off
        December 1, 2001          Date of Spin-Off
        December 3, 2001          Date of Registration of Spin-Off
 
4.      Outline of the Spinning-Off Company

a.      Outline of Spinning-Off Company

(1)   Name                          Konami Computer Entertainment Studios, Inc.
(2)   Principal Business            Development of consumer-use software
(3)   Date of Establishment         March 28, 1997
(4)   Location of Headquarters      4-1-23 Shiba, Minato-ku, Tokyo
(5)   Representative                Kazumi Kitaue, President and Representative
                                    Director
(6)   Capital                       Y300,000,000 (as of March 31, 2001)
(7)   Total Number of Issued Shares 6,000 (as of March 31, 2001) with a par     
                                    value of Y50,000
(8)   Shareholder Capital           Y823,000,000 (as of March 31, 2001)
(9)   Total Assets                  Y1,078,000,000 (as of March 31, 2001)
(10)  Fiscal Year                   Ends March 31
(11)  Number of Employees           122
(12)  Principal Shareholders and    KONAMI CORPORATION           83%
      Percentages Held              Konami Capital, Inc.         17%
(13)  Principal Bank                None
(14)  Relationship to HUDSON        Capital relationship: none
                                    Personnel relationship: none
                                    Sales transactional relationship: none
 
b. Outline of the Successor of the Sapporo business of Konami Computer
Entertainment Studios, Inc.

(1)     Name                        HUDSON SOFT CO., LTD.
(2)     Principal Business          Consumer contents-related business
                                    Network contents-related business
(3)     Date of Establishment       May 18, 1973
(4)     Location of Headquarters    The HUDSON Building, 4-22 Hiragishi Sanjo
                                    5-chome, Toyohira-ku, Sapporo
(5)     Representative              Hiroshi Kudo, President and Representative  
                                    Director
(6)     Capital                     Y1,758,000,000 (as of February 28, 2001)
(7)     Total Number of Issued      8,840,000 shares (as of February 28, 2001)  
        Shares                      with a par value of Y50
(8)     Shareholder Capital         Y5,434,000,000 (as of February 28, 2001)
(9)     Total Assets                Y14,354,000,000 (as of February 28, 2001)
(10)    Fiscal Year                 ends February 28
(11)    Number of Employees         403 (as of February 28, 2001)
(12)    Principal Shareholders and  Yuji kudo               23.90%
        Percentages Held            Hiroshi Kudo            17.96% 
                                    Sui Co.Ltd.              5.65% 
                                    Steel Atmark Co., Ltd.   5.65% 
                                    Japan Trustee Service 
                                    Trust Bank Co., Ltd.     3.71%
(13)    Principal Banks             Hokuyo Bank, Sumitomo Mitsui Banking        
                                    Corporation, Chuo Mitsui Trust Bank
(14)    Relationship to KONAMI      Capital relationship: none 
        STUDIO                      Personnel relationship: none
                                    Business transactional relationship: none
 
*   Figures represent consolidated accounting results.

III.  Issue of New Shares for Capital Increase by Third Party Allotment

1.    Outline of Issue of New Shares

(1)   Number of Newly Issued Shares     5,606,000 shares 
(2)   Issue Price                       Y892
(3)   Total Issue Price                 Y5,000,552,000
(4)   Amount Allocated to               Y2,500,276,000 
      Capital
(5)   Subscription Period               August 20, 2001
(6)   Payment Date                      August 21, 2001
(7)   Dividend Calculation Date         March 1, 2001
(8)   Allocee and Number of             KONAMI CORPORATION 5,606,000 shares
      Shares                            
(9)   Issues of Determination to hold the ownership of New Shares
      KONAMI will confirm to HUDSON that KONAMI shall notify to HUDSON in the   
      event if KONAMI intends to assign the new shares at anytime within two (2)
      years after the date of issuance by HUDSON.
(10)  Each of the foregoing matters shall be subject to an effective            
      registration under the Securities and Exchange Law.

(Note)  Method for Determination of Issue Price
        Y892 was determined based on 91% of the closing price of HUDSON'S share 
        at the Osaka NASDAQ Japan one day prior to the meeting of board of      
        directors where issuance of new shares were approved.

2.  Changes in the Total Number of Issued Shares following this Capital Increase

    Current total number of issued shares       8,840,000 shares 
    Number of additional shares to be           5,606,000 shares 
    issued for this capital increase
    Total number of issued shares              14,446,000 shares 
    following this capital increase

3.  Reason for Capital Increase and Use of the Funds, Etc. 

(1) Reason for Capital Increase

    To strengthen the capital and business alliance between HUDSON and KONAMI,  
    to expand the business fields and to develop future business.

(2) Use of the Funds

    To be applied to investment in consumer-use game software development, etc, 
    within the balance of Y4,980 Million:
          Y5,000 Million received for the issue of new shares deducted by the   
          issuance costs of Y20 Million

(3) Profit Sharing with Shareholders

    The repatriate of the stable dividends is the most important of policy of   
    HUDSON, with efforts to improve the efficiency of management, profitability 
    and to enhance financial capability and results.

4.  Outline of Allocee

(1)   Name                                KONAMI CORPORATION
(2)   Principal Businesses                AM business (amusement machines) 
                                          CS business (consumer-use software)   
                                          GM business (gaming machines) 
                                          PS business (pachinko systems) 
                                          CP business (creative products) 
                                          HE business (health entertainment) 
                                          AO business (amusement operation) etc.

(3)   Date of Establishment               March 19, 1973
(4)   Location of Headquarters            3-1 Toranomon 4-chome, Minato-ku,     
                                          Tokyo
(5)   Representative                      Kagemasa Kozuki Chairman and          
                                          Representative Director
(6)   Capital                             Y47,398,000,000 (as of March 31, 2001)
(7)   Total Number of Issued Shares       128,737,566 shares (as of March 31,   
                                          2001) with a par value of Y50
(8)   Shareholder Capital                 Y149,875,000,000 (as of March 31,     
                                          2001)
(9)   Total Assets                        Y250,023,000,000 (as of March 31,     
                                          2001) 
(10)  Fiscal Year                         ends March 31
(11)  Number of Employees                 3,517 (as of March 31, 2001)
(12)  Principal Shareholders and          Kozuki Holding B.V.         10.50%
      Percentages Held                    Japan Trustee Service Trust Bank Co,  
                                          Ltd.   (Trust Account)       6.77% 
                                          KOZUKI FOUNDATION FOR HIGHER
                                          EDUCATION                    5.68%
                                          Kozuki Capital Corporation   5.43%
(13)  Principal Banks                     Sumitomo-Mitsui Banking Corporation,  
                                          The Bank of Tokyo-Mitsubishi, Ltd.
                                          The Toyo Trust and Banking Co.,LTD
                                          The Industrial Bank of Japan, Ltd
                                          Dresdner Bank AG
(14) Relationship to HUDSON               Capital relationship: none
                                          Personnel relationship: none
                                          Business transactional relationship:  
                                          none

*  Figures represent consolidated accounting results. 

5.    Changes in Principal Shareholders

Following the aforesaid issue of new shares by third party allotment, KONAMI
will, as of August 22, 2001, become the principal shareholder of HUDSON.
                                                   Proportion of   Rank of
                                      Number of    Total Issued    Principal    
                                      Shares held     Shares      Shareholders 
Before Change (as of July 26, 2001)     0 shares        0.0%          -
After change                        5,606,000 shares   38.81%      Number 1

* Provided, however, that as a result of spin-off followed by absorption
expected to occur on December 1, 2001, the ratio of the total number of shares
owned by KONAMI and KONAMI Capital. 7,374,000 shares, to the total number of
issued shares, is expected to be 45.48%.

IV.   Change of HUDSON'S Fiscal Year End

HUDSON is being consolidated into KONAMI's group through this capital and
business alliance. HUDSON will bring up the change of its fiscal year end at the
extraordinary general shareholders' meeting scheduled on October 22, because it
considers that the consistency of KONAMI's fiscal year end and HUDSON'S fiscal
year end is necessary for such alliance.

The timing of implementation of such change of fiscal year end, the method of
accounting for the first year following such change and other details are not
yet determined.

V.    Change of Number of Shares per Unit

HUDSON will bring up the change of the number of HUDSON'S shares per unit (from
1,000 shares to 100 shares) at the extraordinary general shareholders' meeting
scheduled on October 22, for the purpose of enabling wider range of investors to
become the holders of HUDSON'S shares.

The timing of implementation of such change and other details are not yet
determined.

VI.   Future Forecasts

1.   Impact on KONAMI's future forecasts after the capital and business alliance
     with HUDSON and the spin-off of KONAMI STUDIO

(1)  Impact on the management, assets and future forecasts of KONAMI after the  
     business alliance and the spin-off of KONAMI STUDIO

     It is expected that the profitability will be improved as a result of      
     revenue increase and the cost reduction etc due to the strategic business  
     alliance

(2)  The forecasts of the following two consolidated accounting periods after   
     the spin-off.

     They are not fixed at this stage.

2.   Impact on HUDSON'S future forecasts after the capital and business alliance
     with KONAMI and the succession to the Sapporo business of KONAMI STUDIO.

(1)  Impact on the management, assets and future forecasts of HUDSON after the  
     business alliance and the succession to the Sapporo business of KONAMI     
     STUDIO

     It is expected that the profitability will be improved as a result of      
     revenue increase and the cost reduction etc due to the strategic business  
     alliance.

(2)  The forecasts of the following two consolidated accounting periods after   
     the succession

     They are not fixed at this stage.