Capcom Co., Ltd. is pleased to announce that net sales increased to 31,236 million yen (up 0.4% from the same term last year), operating income increased to 3,357 million yen (up 9.8% from the same term last year), ordinary income increased to 4,115 million yen (up 21.2% same term last year) and net income increased to 1,873 million yen (up 16.8% from the same term last year) in consolidated financial results for the 2nd Quarter ended Sep. 30, 2008.

In Home Video Games, the sales of “Monster Hunter Freedom 2G” (for PlayStation Portable) have been skyrocketing since its release on March 27, 2008, becoming a major phenomenon with people in all walks of life to achieve record breaking sales of over 2.5 million units. The great contribution of “Monster Hunter Freedom 2G” drastically increased both sales and profits.

In Arcade Operations, on the other hand, continued to struggle in the severe business environment and showed a weak performance. As a result, operating income decreased in comparison with same term last year. This is mainly attributable to decline of profit margins in existing arcades.

In Contents Expansion, furthermore, Pachislo machine named “Chun-Li Ni Makase China” severely underperformed our expectations.

As a result, both sales and profits increased compared to same term last year by the favorable results of Home Video Games although Arcade Operations and Contents Expansion showed a weak performance.

Forecast for the fiscal year ending March 31, 2009 is not changed due to continuous weak performance of Arcade Operations and Contents Expansion despite steady growth of Home Video Games.

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