PR Announcement

January 11, 2006

Reorganization of the Japanese Operations of the BANDAI NAMCO Group- Merger of Bandai and Namco’s Game Content Businesses Name of the Company:

NAMCO BANDAI Holdings Inc.

Name and Position of the Representative:

Takeo Takasu
President and Representative Director

Head office location:

Minato-ku, Tokyo, JapanFirst Section, Tokyo Stock Exchange (Stock Code: 7832)
Name of the Company:

BANDAI Co., Ltd.

Name and Position of the Representative:

Kazunori Ueno
President and Representative Director

Head office location:

Taito-ku, Tokyo, Japan

Name of the Company:

NAMCO LIMITED

Name and Position of the Representative:

Shigeichi Ishimura
President and Representative Director

Head office location:

Ohta-ku Ward, Tokyo, Japan

NAMCO BANDAI Holdings Inc. will reorganize the Japanese operations of theBANDAI NAMCO Group with the aim of maximizing the Group’s corporate value. On
March 31, 2006 it will establish a new Group company under the name of NAMCO BANDAI
Games Inc., which will be formed by merging Bandai’s home console game content division
with NAMCO’s home console game content division, its arcade game console contentdivision, its mobile contents business division and part of its new business division.
Following this reorganization, NAMCO BANDAI Games Inc. will serve as the successor
to today’s NAMCO LIMITED. The functions of the Entertainment Company (whichcurrently manages NAMCO’s amusement facilities) along with some of the functions of theIncubation Center will be given to a re-m ergered NAMCO LIMITED, which will focus its
activities on amusement facilities.

Integrating NAMCO and Bandai’s game contents businesses will unite Bandai’sknow-how for planning and developing linkage with and timely media promotion of contents
that give life to the vision of characters, with NAMCO’s know -how for making the most ofaccumulated technical skills and for undertaking medium- and long-term planning anddevelopment. This step therefore represents an endeavor to further improve the BANDAI
NAMCO Group’s planning and development capabilities. It will at the same time promote
improvements in efficiencies, by making effective use of the resources of both companies(such as their development teams and distribution routes).
The BANDAI NAMCO Group is divided into five Strategic Business Units (“SBUs”): theToys & Hobby SBU (responsible for toys, models, apparel, and sundries); the Amusement
Facility SBU (which manages amusement facilities); the Game Contents SBU (which plansand develops home and arcade console game content); the Network SBU (which suppliesmobile content); and the Visual and Music Content SBU (which produces and distributes
video software and content). The individual SBUs form the basis for the BANDAI NAMCO
Group’s pursuit of its business strategies, governed by a management strategy for the Group
as a whole.
At present, Bandai’s toys & hobby and game content businesses and NAMCO’s gamecontent and amusement facilities businesses are split among several SBUs. Following thisreorganization however, Bandai will be the base company for the Toys & Hobby SBU,NAMCO for the Amusement Facility SBU, and NAMCO BANDAI Games for the Game
Contents SBU. This reorganization will more clearly delineate the mission of each company
in the Group, thereby providing greater dynamism in the pursuit of the Group’s businessstrategies. Along with an acceleration of the benefits of synergy between the SBUs, the aimof this reorganization is to maximize our corporate value through portfolio management.

Company Profile of NAMCO BANDAI Games Inc.
(April 1, 2006)【Company name】

NAMCO BANDAI Games Inc.

【Incorporation date】

March 31, 2006

【Capital】¥15 billion【Head office address】

Yaguchi, Ohta-ku, Tokyo, Japan【Balance date】

March 31

【Officers】
Chairman and Director

Masaya Nakamura

President and Representative Director

Shukuo Ishikawa

Vice-President and Representative Director Shin Unozawa
Directors

Tetsuro Takeuchi
Takashi Syouji
Kazuo Asami
Kazuya Kiyoshima
Yuji Asako

Corporate auditors

Akiyoshi Sarukawa
Shigeru Yamada
Mitsuo Ichikawa【No. of employees】1705 (55 from Bandai, 1650 from Namco)【Businesses】

Planning, development, and sale of home console game content.
Planning, development, and sale of arcade game consoles.
Planning, development, and sale of mobile content.
In addition to other businesses not specified.

Company Profile of NAMCO LIMITED.
(April 1, 2006)※This NAMCO LIMITED is to be re-created through a de-merger from the existing
NAMCO LIMITED.
【Company name】

NAMCO LIMITED【Incorporation date】

March 31, 2006

【Capital】¥10 billion【Head office address】

Tamagawa, Ohta-ku, Tokyo, Japan【Balance date】

March 31

【Officers】
Chairman and Director

Masaya Nakamura

Representative Director and President

Jun Higashi

Director

Keiji Azuma

Corporate Auditors

Shigeru Yamada
Mitｓuo Ichikawa
Osamu Sudo

【No. of employees】860【Business】Planning and management of amusement facilities.
In addition to other businesses not specified.
※ Information in these materials is current as of January 11, 2006 and may be subject tochange.