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Namco and Bandai Officially Integrate In North America, Creating NAMCO BANDAI Games America Inc.

Joint North American Operations Now Based In Santa Clara, California

Santa Clara, Calif., (January 4, 2006) -- NAMCO HOMETEK INC. and Bandai Games Inc. today announced that the integration of their two companies is now complete. The two companies are now officially known as NAMCO BANDAI Games America Inc. in North America. The company now operates out of the Santa Clara, California facility, formerly held by NAMCO HOMETEK INC.

Effective January 2, 2006, NAMCO BANDAI Holdings (USA) Inc. (formerly called NAMCO HOLDING CORP.) owns all of the BANDAI NAMCO Group US subsidiaries including Bandai America Inc. (Toy), Bandai Entertainment, Inc.(Visual/DVD), NAMCO AMERICA INC. (Arcade machine), NAMCO CYBERTAINMENT INC.(Arcade facility), NAMCO NETWORKS AMERICA INC. (Mobile games) and NAMCO BANDAI Games America Inc.(Video games).

"We are thrilled that the integration of the two North American entities is now complete and we are all now under one roof," said Genichi Ito, the new President and CEO of NAMCO BANDAI Games America Inc. "We are proud to be part of the new NAMCO BANDAI Games America family and look forward to a successful year ahead."

"The integration of our two companies has been a team effort over the last several months," said Naruo Uchida, who is joining from Bandai Games Inc. and now serving as the Corporate Planning Senior Vice President of NAMCO BANDAI Games America Inc. "We have worked together to fuse the many strengths each of our companies have to form one strong North American operation."

The integration brings together two of the most well-respected Japanese-owned interactive entertainment companies. With brands including Pac-Man®, Tamagotchi®, SoulCalibur®, Naruto and Tekken®, NAMCO BANDAI Games America Inc. 's separate brands now fall under one strong brand, with many new properties and offerings also on the horizon.

Bandai Games Inc. is a subsidiary of Bandai America Inc. and a leading publisher of interactive entertainment software for next generation game consoles. Unique characters and stimulating game experiences highlight Bandai Games Inc. distinctive product lineup which include hit properties such as Inuyasha and Digimon. The company was formerly headquartered in Cypress, California. NAMCO HOMETEK INC. is the U.S. consumer division of NAMCO LIMITED, a Tokyo-based world leader in the high-tech entertainment industry, and is an award-winning video games publisher for next generation game consoles.

About NAMCO BANDAI Games America Inc.

NAMCO BANDAI Games America Inc. is an interactive entertainment software publisher and developer based in Santa Clara, CA. The company is a subsidiary of the newly formed NAMCO BANDAI Holdings (USA) Inc. based in Cypress, CA.

On September 29, 2005, Bandai Co., Ltd. and NAMCO LIMITED implemented a management integration to form NAMCO BANDAI Holdings Inc. This step was taken to compete more effectively on the global stage in the fast-changing entertainment industry and to deliver further growth.

The resulting BANDAI NAMCO Group is a global entertainment group involved in business fields ranging from toys, amusement facilities, video game software and visual software, to apparel, sundries and network content.

As previous separate entities (NAMCO HOMETEK INC. and Bandai Games Inc.) the companies were each known for creating some of the industry's top franchises including: Tamagotchi®, Tekken®, Power Rangers, SOULCALIBUR®, Teen Titans, Dead to Rights®, Pac-Man WorldTM, Inuyasha, Digimon, Ridge Racer®, Time Crisis® and ACECOMBAT®. For more information about NAMCO BANDAI America Inc. and its products log onto www.namcobandaigames.com.

For more information about NAMCO BANDAI Games America Inc., please contact:

Mika Kelly

408-235-2133

mkelly@namco.com

-or-

Kristin Calcagno

408-235-2132

kcalcagno@namco.com

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