Due to the spread of broadband and the improvement of digital and communication technology in recent years, the environment surrounding our company continues to undergo high speed growth and development. The Internet is an essential part of today's society and has been established as a communication tool that connects people all over the world in real time. Furthermore, against the backdrop of a dwindling birthrate and an aging population coupled with the reassessment of the medical and welfare systems, people have been showing a growing interest in the maintenance and management of their own health.

In response to the changing times, the Konami Group is also moving ahead in the direction desired by society. The rapid development of network technology has contributed to a significant evolution in the environment of the entertainment market. In terms of our company's Digital Entertainment business, we will take full advantage of the digital technology we have cultivated through game creation to capture the online business market. We aspire to provide our customers with fresh new digital entertainment by strengthening our efforts in the online sector and continuing our efforts in creating enjoyment, surprise and excitement.

Furthermore, in terms of our Health & Fitness business, we do not only operate our fitness clubs but also wish to provide total support of promoting health to our customers' active lives. By supporting the healthy development of the minds and bodies of children, the preservation of the health and beauty of adults, and a productive second life for the elderly, we will meet the diverse needs of all of our customers. In this business, there are growing needs for health management utilizing networks and e-commerce. The Konami Group will concentrate all its efforts to further accelerate the offering of these services online in order to improve convenience for our customers.

In all areas of the world, including North America, there has been a rapid move towards inviting casinos to the region for the purpose of generating employment, revitalizing the local area and creating a family-oriented resort area. Since 2000, our company has been manufacturing and selling casino machines in North America, and upon seeing this change as a golden opportunity for our company, in June of last year, we have transferred the Las Vegas factory to a new location near the airport and have beefed up our production system for casino machines. Moreover, taking advantage of cutting-edge network technology, we have bolstered our manufacturing and selling of casino management systems for effectively supporting the management of casinos. This brings us to a new growth stage in terms of our Gaming & System business. As the only corporation in Japan dealing with the manufacturing and selling of casino machines, we will strive to develop this business on a global basis.

Using the three above-mentioned businesses as our main pillars, the Konami Group wishes to meet and surpass the expectations of society. As a result of its shift to becoming a holding company that will realize more efficient operations, the Konami Group will embark on a new era of history-making in 2006.

We appreciate your continued support of our activities.

Kagemasa Kozuki
Chief Executive Officer of Konami Group