The Marcus Corporation Reports Year-End Results; Total Revenues Increase in All Three Divisions; Operating Income up 4.1%

Business Wire, July 24, 2003

Marcus said the division completed renovations and expansions at the Pfister Hotel in Milwaukee and the Grand Geneva Resort & Spa in Lake Geneva, Wisconsin, in fiscal 2003. "We are also pleased with the customer response to our Marcus Vacation Club condominiums at the Grand Geneva. All 30 units in the first three buildings have been sold and we recently completed construction on an additional 32 units that are now being marketed to prospective purchasers," said Marcus.

Increased visibility, enhanced sales and marketing programs and effective use of e-commerce distribution channels helped Baymont Inns & Suites increase occupancy and market share in fiscal 2003. RevPAR increased 2.6% for the year, outperforming the mid-price limited-service lodging segment as a whole. "Although reduced business travel and a very competitive pricing environment have continued to impact our overall operating results, the division's marketing strategies have introduced many new guests to the Baymont Inns & Suites brand. We believe this will benefit us over the long term as these new guests experience our outstanding service and excellent value and become loyal customers for years to come," said Marcus.

Marcus noted that Baymont Inns' Guest Ovations(TM) frequent stay program continues to grow, with over 250,000 members at year end. The program contributed 25% of the division's revenues in fiscal 2003.

"In fiscal 2003, we continued to invest in our properties to keep them fresh and new and to be ready to benefit as the economy improves. We also further strengthened our balance sheet as a result of our strong operating cash flow and reduced capital spending. This is evidenced by our year-end debt-to-capitalization ratio of under 43%, the lowest in five years," said Marcus.

"Our investments in the year ahead will be focused on enhancing our existing facilities, strengthening our brands and selectively expanding our asset base. We believe we are well positioned for future long-term growth," he added.

Marcus Corporation management will host a conference call today, July 24, 2003, at 3:00 p.m. Central/4:00 p.m. Eastern time to discuss the fourth quarter results. Interested parties can listen to the call live on the Internet through the investor relations section of the company's Web site: www.marcuscorp.com, or by dialing 1-913-981-5560. Listeners should dial in to the call at least 5 - 10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through Thursday, July 31, 2003 on the company's Web site or by dialing 1-888-203-1112 and entering the passcode 388364.

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The company's limited-service lodging division operates or franchises 182 Baymont Inns & Suites in 31 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 488 screens at 46 locations in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin. Marcus Hotels and Resorts owns or manages 11 hotels and resorts in Wisconsin, California, Minnesota, Missouri and Texas, and one vacation club in Wisconsin. For more information, visit the company's Web site at www.marcuscorp.com.