Midway Reaches Waiver and Forbearance Agreement on 7.125% Notes

CHICAGO--(BUSINESS WIRE)--Midway Games Inc. (NYSE: MWY) today filed a Current Report on Form 8-K with the SEC detailing the waiver and forbearance agreement it has reached with the holders of its $75 million principal amount of 7.125% Convertible Senior Notes due 2026. In the agreement, the noteholders agreed to extend their right to require Midway to repurchase the notes until February 19, 2009.

Midway is currently in discussions with the holders of its 6% Convertible Senior Notes due 2025 to obtain a similar waiver and forbearance agreement extending the repurchase date for those notes triggered by the change of control to February 19, 2009.

About Midway

Midway Games Inc. (NYSE:MWY), headquartered in Chicago, Illinois, with offices throughout the world, is a leading developer and publisher of interactive entertainment software for major videogame systems and personal computers. More information about Midway and its products can be found at www.midway.com.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning future business conditions and the outlook for Midway Games Inc. (the "Company") based on currently available information that involves risks and uncertainties. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of these risks and uncertainties, including, without limitation, the financial strength of the interactive entertainment industry, dependence on new product introductions and the ability to maintain the scheduling of such introductions, the current console platform transition and other technological changes, dependence on major platform manufacturers and other risks more fully described under "Item 1. Business - Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, and in more recent filings made by the Company with the Securities and Exchange Commission. Each forward-looking statement, including, without limitation, financial guidance, speaks only as of the date on which it is made, and Midway undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, except as required by law.