MIDWAY TO COMBINE SOUTHERN CALIFORNIA DEVELOPMENT STUDIOS

CHICAGO, IL– July 21, 2008 - Midway Games Inc. (NYSE: MWY), a leading interactive entertainment publisher and developer, today announced it will be combining the operations of Midway Studios– Los Angeles, located in Moorpark, CA, with Midway Home Entertainment, located in San Diego, CA. The newly combined operations will be located at Midway Home Entertainment’s current San Diego facility. The majority of Moorpark employees, including the entire development team for Midway’s TNA iMPACT!™ franchise, are being offered the opportunity to transfer to the San Diego facility. Midway expects to complete the transition out of the Moorpark facility by September 30, 2008.

Combining the locations will allow the TNA iMPACT! development team to further leverage synergies with Midway’s other development studios in Chicago, Austin, Seattle, and Newcastle, UK, and work in close conjunction with the third-party production, licensing, and quality assurance groups that are currently in San Diego. In addition, the San Diego area has a strong interactive entertainment talent base that will greatly help fuel Midway’s future growth.

As part of this move, Midway expects in the near future to look for new talent in its San Diego studio. For a list of available positions please visit www.midway.com.

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.

TNA, TOTAL NONSTOP ACTION, and other TNA indicia used on or in this product are trademarks, copyrighted designs and other forms of intellectual property of TNA Entertainment, LLC and may not be used in whole or in part, without the prior written consent of TNA Entertainment, LLC.© 2005 TNA Entertainment, LLC.

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.

Midway is an Equal Opportunity Employer and does not discriminate on the basis of race, color, religion, sex, age, national origin, disability, veteran status, sexual orientation or any other classification protected by Federal, State or local law.

For More Information Contact:

Reilly Brennan

Midway - Media Relations

773.961.2557

rbrennan@midway.com

Geoffrey Mogilner

Midway - Investor Relations

773.961.2104

gmogilner@midway.com


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