Revise forecast

Konami Corporation
12 May 2006


FOR IMMEDIATE RELEASE
                                                                                     May 12, 2006

                                                                               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]


                    News Release: Revision of Consolidated Results Forecast

                                for the Year Ended March 31, 2006

  We hereby announce the revision of our consolidated results forecast for the year ended March
31, 2006, which was previously released on May 10, 2005.

1. Revision of Consolidated Results Forecast (US GAAP)

                                                                                (Millions of yen)

Year ended March 31, 2006 (from April 1, 2005, to March 31, 2006)

                                  Net revenues     Operating     Income before     Net income
                                                     income      income taxes

Previous forecast (A)                    270,000         28,500          34,000            18,000

Released on May 10, 2005

Revised forecast (B)                     262,100          2,400           8,400            23,000

Change (B - A)                            -7,900        -26,100         -25,600             5,000

Percentage Change (%)                       -2.9          -91.6           -75.3              27.8


Results for the year ended March
31, 2005
                                         260,691         28,136          27,442            10,486
< For reference : Revised forecast>
Disclosed under                          262,100         23,000           8,400            23,000

Japanese GAAP
There are no changes to the year end cash dividend forecast, which previously
have been announced as 27.00 Japanese yen per share. (Including interim
dividend, dividend for the year is 54.00 Japanese yen.)


2. Reason for the revision



In our Health & Fitness business, we have appropriate accelerated depreciation
of assets, approximately 10.5 billion yen, such as the buildings for our fitness
facilities where the book value of such assets has exceeded expected future cash
flow.

In order to achieve a more fair measurement of the asset valuation, we have also
revalued our intangible fixed assets and posted an approximately 9.2 billion yen
of accelerated depreciation in addition to the accelerated depreciation of
tangible fixed assets.

As a result of adopting accounting for the impairment of assets, we wrote off an
approximately 19.7 billion yen of impairment loss and have adjusted our forecast
of operating income for the year ended March 31, 2006, downward to 2.4 billion
yen.

As we adopted the US GAAP after listing on the New York Stock Exchange in 2002,
we are accounting for this lump sum depreciation expense as an operating
expense. (it would be treated as an extraordinary loss under Japanese GAAPj


We are revising our forecast of Consolidated Net Income for the year ended March
31, 2006, upward to 23 billion yen due to an approximately 17 billion yen
reversal of tax liabilities accrued for tax benefits that we had our assets re-
appraised under US GAAP in connection with the impairment of goodwill, which
originally accrued when shares of common stock of the former PEOPLE CO., LTD.
were acquired in the year 2001.


3. Outlook for Health & Fitness Business

Konami has been undertaking a group reorganization since last year, and has
aimed to enhance the corporate value of our businesses through a holding company
structure which we implemented in  March 2006. In our Health & Fitness business,
we have aimed to offer safe, clean, comfortable fitness facilities, in response
to the aging of Japanese society and a rising awareness of health issues,
improve our efficiency and strengthen our earnings base.

In addition, we are concentrating on creating new health-related services that
are distinct from those in the conventional fitness business.

We believe we will improve our operating income margin by our fitness facility
unit starting with the fiscal year ending March 31, 2007, as there has been a
trend of increasing members for our fitness facilities, and by posting the
accelerated depreciation of assets in the fiscal year ended March 31, 2006, will
have assets that are more fairly valued in relation to our operating revenues.

Improving our profitability by our fitness facility unit, expanding new
businesses for seniors and health promotion businesses (expansion of our
lifestyle disease prevention business through alliances with medical
institutions), we aim to achieve operating income of 5 billion yen and 10
billion yen in our Health & Fitness business (with an operating income margin of
10%) for the years ending March 31, 2007, and 2009, respectively.

Cautionary Statement with Respect to Forward-Looking Statements:

Statements made in this document with respect to our current plans, estimates,
strategies and beliefs, including the above forecasts, are forward-looking
statements about our future performance. These statements are based on
managementfs assumptions and beliefs in light of information currently available
to it and, therefore, you should not place undue reliance on them. A number of
important factors could cause actual results to be materially different from and
worse than those discussed in forward-looking statements. Such factors include,
but are not limited to: (i) changes in economic conditions affecting our
operations; (ii) fluctuations in currency exchange rates, particularly with
respect to the value of the Japanese yen, the U.S. dollar and the Euro; (iii)
our ability to continue to win acceptance of our products, which are offered in
highly competitive markets characterized by the continuous introduction of new
products, rapid developments in technology and subjective and changing consumer
preferences; (iv) our ability to successfully expand internationally with a
focus on our video game software business, card game business and gaming machine
business; (v) our ability to successfully expand the scope of our business and
broaden our customer base through our exercise entertainment business; (vi)
regulatory developments and changes and our ability to respond and adapt to
those changes; (vii) our expectations with regard to further acquisitions and
the integration of any companies we may acquire; and (viii) the outcome of
contingencies.





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