First, beat Ryo. After the game ending, look at the demo game. When you hear the ''Fight!'', enter this code: Up, A, Left, A, Down, A, Right, A, Up, A, Up, C, Right, C, Down, C, Left, C, Up, C. If this code is entered correctly you will hear Ryo's voice. Then you can push start button. Note: Ryo is only available in Player1 VS Player2 mode.
You must finish the tournament without losing a round. When Krauser is defeated, you'll fight versus Ryo in a match.
While the game is paused, press A, B, C, D, and A.