Midway Reaches Waiver and Forbearance Agreement on 7.125% Notes

  
    
  
  
    
      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.