Stmnt re Dispute

Konami Corporation
18 December 2000


PCCWJ and Konami agreed to settle the dispute on Intellectual Property Rights

Pacific Century Cyber Works Japan (CEO and Now Division President, J. Todd
Bonner, hereafter PCCWJ) and KONAMI CORPORATION (CEO, Kagemasa Kozuki, hereafter
Konami), after having series of serious discussions, have agreed to settle the
dispute between both companies and respect each other's intellectual property
rights.

From July to August 1999, Konami insisted that patent rights were infringed by
former Jaleco Limited (PCCWJ's antecedents, hereafter Jaleco).  Jaleco took a
stand against this allegation, and insisted that the relevant intellectual
property rights are invalid.  In the past one and half year, the companies have
been involved in the litigation both at the Court and the Patent Office.

However, we had a deepest concern about negative influence on the digital
entertainment industry, which dueling with PCCWJ for a long time might bring
about, and rather wished to develop new fields of game industry such as
forthcoming generation's game contents.  Then after sincere and friendly
discussions, we agreed to end the duel as mentioned above, and solve the issue
on totally equal conditions, together with withdrawing the suits from the Tokyo
District Court and Patent Office.

Konami sincerely hopes that this settlement become a good solution model for
future possible disputes regarding intellectual property rights, covering the
issues of pirates and counterfeit products in amusement industry.

                      (Further inquiries from press)

            KONAMI CORPORATION      Public Relation Section
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