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Koei Expands Canadian Development Studio

With the support of the Canadian Government, KOEI Canada expands its game development staff

For Immediate Release:

Toronto, Canada - Oct. 25, 2005 - KOEI Co., Ltd., at an event attended by various members of the Canadian government and Toronto city officials, today announced the expansion of their KOEI CANADA studio, which will serve to create game titles targeted for the Western market.

With the support of the Canadian government, KOEI CANADA plans to expand its staff to 150 - 200 people over the next few years, and become the largest of KOEI's overseas development studios.

KOEI firmly believes that a presence in the global market requires product offerings that address the shifting needs of each region. KOEI CANADA is a milestone in the company's strategy for globalization, and utilizing the advanced technological skill of the Canadian staff, KOEI CANADA will create titles for the worldwide market, with a focus on North America and Europe.

KOEI CANADA is already developing two new titles, including a launch title for Sony's highly anticipated PlayStation 3 console, "Fatal Inertia," which is a futuristic aerial combat racing game. Capitalizing on the combined energies of KOEI CANADA's staff as well as other members of the KOEI Group, this will be the first original title developed outside of Japan.

The KOEI Group is determined to be "The World's #1 Entertainment Content Provider," and will continue its product development and marketing efforts with the global marketplace in mind.

About Koei Ltd.

KOEI Ltd is a subsidiary of Japanese company KOEI Co., Ltd and has had offices in Hertfordshire, UK since 2003. KOEI maintains operations in Japan, the US, UK, Canada, China, Korea, France, Taiwan, Singapore, and Lithuania. KOEI employs over 900 people worldwide with sales exceeding $250 million. The company constantly seeks to achieve a fine balance between entertainment, technology, art and education and provides games that will mesmerize gamers globally.

The KOEI logo is a registered trademark of KOEI Co., Ltd. ®2005, KOEI Co., Ltd. All rights reserved. "PlayStation" and the "PS" family logo are registered trademarks of Sony Computer Entertainment Europe.

For more information:

Mikey Foley

PR & Marketing Manager

Koei Ltd.

Phone: 0044 (0)1462 476130

mike@koei.co.uk

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