Microsoft and Konami Agree to Deliver Great Games to the Masses

REDMOND, Wash. - May 11, 1999 -Microsoft Corp. and Konami Company Ltd., a leading developer of electronic entertainment for the video game segment, today announced they have formed a cross-licensing arrangement that will bring each company's respective console and PC games to new platforms. The global relationship will expand the distribution of game properties for both Konami and Microsoft.

Under the agreement, Konami has the option to publish select Microsoft^® games for console platforms, including the Playstation, Dreamcast and Nintendo 64, and Microsoft has the option to publish select Konami titles for the PC platform. The companies also plan to collaborate on cross-platform development and marketing coordination, each bringing a wealth of expertise from their respective customer segments.

Both Microsoft and Konami will continue to produce the best PC and console games, respectively, while evaluating the cross-platform potential for each other's products. Microsoft and Konami will announce specific product releases and availability later in 1999.

"This agreement allows us to make our games available to all gamers across multiple platforms for the first time. Konami is one of the largest and most respected console publishers, and we trust its expertise in bringing Microsoft games to the console," said Ed Fries, general manager of the Microsoft Games Division. "At the same time, we see this as a great opportunity to grow the breadth and quality of our PC games portfolio by publishing some of Konami's best console games for the PC."

"Microsoft and Konami are both committed to producing the world's finest games," said Kazumi Kitaue, managing director of Konami's Consumer Software Division. "We are pleased to be entering into this strategic relationship, as it will allow us to leverage our position as one of the world's largest publishers of console titles and to watch Konami games flourish on the PC platform."

About Konami Company Ltd.

Konami Company Ltd. is a leading developer, publisher and manufacturer of electronic entertainment properties, specializing in the home video game and PC markets. In addition to the Konami Sports Series, which includes Fisherman's Bait™, International Superstar Soccer, NBA in the Zone, NHL Blades of Steel, Bottom of the 9th and Nagano Winter Olympics, Konami's consumer titles include Metal Gear Solid^®, Silent Hill and Castlevania^®, among other top sellers. The latest information about Konami can be found on the Web at http://www.konami.com/. Konami of America Inc. is a subsidiary of Konami Company Ltd., a publicly traded company based in Tokyo, Japan.

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