NEWS RELEASE

[GRAPHIC OMITTED] [MARCUS CORP LOGO]

THE MARCUS CORPORATION	For additional information, contact:
100 EAST WISCONSIN AVENUE, SUITE 1900	Douglas A. Neis
MILWAUKEE, WISCONSIN 53202-4125	(414) 905-1100
TELEPHONE 414-905-1000  FAX 414-905-2669
A NYSE company

FOR IMMEDIATE RELEASE

THE MARCUS CORPORATION REPORTS INCREASED
THIRD QUARTER RESULTS
Earnings Up 31.6%; Continued Improvement at Baymont Inns & Suites

Milwaukee, Wis., March 18, 2004…..The Marcus Corporation (NYSE: MCS) today reported increased revenues and earnings for the third quarter ended February 26, 2004.

Total revenues for the third quarter of fiscal 2004 were $94,431,000, a 2.7% increase from revenues of $91,986,000 for the third quarter of the prior year. Net earnings were $2,284,000 or $0.08 per diluted share for the third quarter of fiscal 2004, a 31.6% increase from net earnings of $1,735,000 or $0.06 per diluted share for the comparable prior period.

For the first three quarters of fiscal 2004, total revenues were $309,874,000, a 3.2% increase from revenues of $300,350,000 for the same period in the prior year. Earnings from continuing operations and net earnings were $20,032,000 or $0.67 per diluted share for the first three quarters of fiscal 2004, a 20.3% increase from earnings from continuing operations of $16,658,000 or $0.57 per diluted share and a 12.1% increase from net earnings of $17,874,000 or $0.61 per diluted share for the first three quarters of fiscal 2003. Continuing operations include The Marcus Corporation’s theatre, limited-service lodging and hotels and resorts divisions.

“Our increased third quarter earnings were primarily due to reduced interest expense and the continued improvement in operating income of Baymont Inns & Suites. We are also encouraged by the solid increase in revenue per available room (RevPAR) achieved by Marcus Hotels and Resorts and the continued strong performance of Marcus Theatres^®,” said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.

Marcus Theatres started the third quarter with a strong December and a record week between Christmas and New Year’s. Revenues and operating income were flat for the period, however, due to underperforming film

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product in January and February. Top-grossing movies for the quarter were Lord of the Rings: The Return of the King, Cheaper by the Dozen and Something’s Gotta Give.

“Our fiscal fourth quarter is off to a very strong start for Marcus Theatres. The box office for The Passion of the Christ, which opened on the last two days of our third quarter, is far surpassing all previous expectations and films including Starsky & Hutch, Hidalgo and Secret Window have opened strong. Potential hits for spring include Scooby-Doo 2: Monsters Unleashed, Kill Bill Volume 2, Home on the Range and the Alamo, with May openings including Van Helsing, Troy and Shrek 2,” said Marcus.

A new six-screen theatre in Tomah, Wisconsin, which the company is managing for the Ho-Chunk Indian Nation, opened early in the quarter and the company’s fourth 75-foot-wide UltraScreen™ opened shortly before the end of the quarter at the Marcus Elgin Fox Cinema in Elgin, Illinois. Marcus Theatres also announced plans to build a new theatre in Saukville, Wisconsin, a fast-growing area north of Milwaukee.

Baymont Inns & Suites reported a substantial improvement in operating income on flat revenues for the third quarter. The division’s RevPAR for comparable properties was up 0.9% for the quarter as the division continued to gain market share.

Marcus said the increase in operating income resulted primarily from improved performance from the company’s franchise operation and reduced administrative costs. The division’s first property on the West Coast, a joint venture property in Ontario, California, that opened in the second quarter, continues to perform well.

“We are encouraged by the steady improvement we are seeing in the marketplace and the continued progress of Baymont Inns & Suites. RevPAR for comparable Baymont Inns & Suites properties was up nearly 3.5% in February, the strongest month of the quarter,” said Marcus.

RevPAR for Marcus Hotels and Resorts increased 7.5% in the third quarter, reflecting improved performance at the majority of the division’s properties. “This solid improvement in revenues did not translate to the bottom line due to favorable real estate tax adjustments in the third quarter of last year and expenses this year related to a new joint venture project in Las Vegas,” said Marcus.

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In January, the division announced plans for the joint venture Platinum Suite Hotel & Spa development in Las Vegas. Marcus Hotels and Resorts will participate in the development of the property and will manage the project when it is completed. The Platinum Suite Hotel & Spa will feature 255 condominium units, plus a luxury spa, swimming pools, meeting space, restaurants and lounges, in an atmosphere designed to set the property apart from the typical Las Vegas experience. Construction for the project, which is located one block east of the Las Vegas Strip near the Bellagio, Bally’s and Caesars Palace casinos, is expected to begin later this year.

Marcus added that the division’s new destination spa at the Miramonte Resort in Indian Wells, California, will open shortly.

“We are encouraged by the continued improvement in the economy and the lodging industry forecasts for the months and year ahead. Our theatre division has a strong start to the fourth quarter. The upcoming movie product through the end of our fiscal year in May appears very solid, and the summer looks particularly promising. We look forward to continued progress in the final quarter of the year,” said Marcus.

Marcus Corporation management will host a conference call today, March 18, 2004, at 3:00 p.m. Central/4:00 p.m. Eastern time to discuss the third 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 1-913-981-5507. 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 telephone replay through Thursday, March 25, 2004 by dialing 1-888-203-1112 and entering the passcode 491240. The Webcast of the conference call will be archived on the company’s Web site until the next earnings release.

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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 178 Baymont Inns & Suites in 32 states, seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas and one Budgetel Inn in Wisconsin. Marcus Theatres owns or manages 493 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.

Certain matters discussed in this Press Release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as we “believe,” “anticipate,” “expect” or words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause results to differ materially from those expected, including, but not limited to, the following: (i) our ability to successfully define and build the Baymont brand within the “limited-service, mid-price without food and beverage” segment of the lodging industry; (ii) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division; (iii) the effects of increasing depreciation expenses and preopening and start-up costs due to the capital intensive nature of our businesses; (iv) the effects of adverse economic conditions in our markets, particularly with respect to our limited-service lodging and hotels and resorts divisions; (v) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (vi) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets; (vii) the effects of competitive conditions in the markets served by us; (viii) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; and (ix) the adverse impact on business and consumer spending on travel, leisure and entertainment resulting from terrorist attacks in the United States, the United States’ responses thereto and subsequent hostilities. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this Press Release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

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THE MARCUS CORPORATION
Consolidated Statements of Earnings (Unaudited)
(in thousands, except per share data)

	13 Weeks Ended						39 Weeks Ended
	Feb. 26, 2004			Feb. 27, 2003			Feb. 26, 2004			Feb. 27, 2003
Revenues:
Rooms and telephone	$	35,111		$	34,714		$	130,668		$	129,106
Theatre admissions		26,441			26,854			77,652			76,737
Theatre concessions		12,427			12,388			35,876			35,420
Food and beverage		9,066			8,204			28,209			25,814
Other revenues		11,386			9,826			37,469			33,273
Total revenues		94,431			91,986			309,874			300,350
Costs and expenses:
Rooms and telephone		18,812			18,204			60,341			58,884
Theatre operations		20,494			20,199			59,978			58,699
Theatre concessions		2,721			2,651			7,914			7,925
Food and beverage		7,483			6,725			21,961			19,923
Advertising and marketing		6,332			6,744			20,987			21,439
Administrative		9,899			10,257			31,000			30,367
Depreciation and amortization		11,553			11,246			34,197			34,112
Rent		594			628			1,813			1,845
Property taxes		4,064			3,095			11,490			11,364
Pre-opening expenses		118			18			273			21
Other operating expenses		4,914			4,469			16,095			15,114
Total costs and expenses		86,984			84,236			266,049			259,693
Operating income		7,447			7,750			43,825			40,657
Other income (expense):
Investment income (loss)		420			(1,577	)		1,411			(342	)
Interest expense		(4,013	)		(4,809	)		(12,603	)		(15,106	)
Gain (loss) on disposition of property,
equipment and investments in joint
ventures		(46	)		1,539			759			2,859
		(3,639	)		(4,847	)		(10,433	)		(12,589	)
Earnings from continuing operations
before income taxes		3,808			2,903			33,392			28,068
Income taxes		1,524			1,168			13,360			11,410
Earnings from continuing operations		2,284			1,735			20,032			16,658
Discontinued operations:
Gain on sale of discontinued operations,
net of applicable income taxes		--			--			--			1,216
Net earnings	$	2,284		$	1,735		$	20,032		$	17,874
Earnings per share - basic:
Continuing operations	$	0.08		$	0.06		$	0.68		$	0.57
Discontinued operations		--			--			--			0.04
Net earnings per share	$	0.08		$	0.06		$	0.68		$	0.61
Earnings per share - diluted:
Continuing operations	$	0.08		$	0.06		$	0.67		$	0.57
Discontinued operations		--			--			--			0.04
Net earnings per share	$	0.08		$	0.06		$	0.67		$	0.61
Weighted average shares outstanding:
Basic		29,664			29,389			29,580			29,365
Diluted		29,939			29,542			29,779			29,533

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THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)

	(Unaudited)		(Audited)
	February 26, 2004		May 29, 2003
Assets:
Cash and cash equivalents	$	3,490	$	6,039
Accounts and notes receivable		19,555		29,685
Refundable income taxes		--		4,032
Real estate and development costs		6,788		5,338
Other current assets		9,930		5,771
Property and equipment - net		650,053		655,803
Other assets		51,799		48,789
Total Assets	$	741,615	$	755,457
Liabilities and Shareholders' Equity:
Accounts and notes payable	$	14,855	$	22,188
Income taxes		1,595		--
Taxes other than income taxes		11,969		13,682
Other current liabilities		24,442		18,110
Current maturities of long-term debt		46,617		72,906
Long-term debt		196,139		203,307
Deferred income taxes		40,326		38,768
Deferred compensation and other		17,717		16,596
Shareholders' equity		387,955		369,900
Total Liabilities and Shareholders' Equity	$	741,615	$	755,457

THE MARCUS CORPORATION
Business Segment Information (Unaudited)
(in thousands)

	Limited- Service Lodging			Theatres		Hotels/ Resorts			Corporate Items			Total
13 Weeks Ended Feb. 26, 2004
Revenues	$	26,855		$	40,850	$	26,382		$	344		$	94,431
Operating income (loss)		73			10,387		(1,377	)		(1,636	)		7,447
13 Weeks Ended Feb. 27, 2003
Revenues	$	26,745		$	40,852	$	24,105		$	284		$	91,986
Operating income (loss)		(425	)		10,684		(636	)		(1,873	)		7,750
39 Weeks Ended Feb. 26, 2004
Revenues	$	94,373		$	119,340	$	95,259		$	902		$	309,874
Operating income (loss)		10,739			30,246		8,596			(5,756	)		43,825
39 Weeks Ended Feb. 27, 2003
Revenues	$	94,737		$	116,225	$	88,250		$	1,138		$	300,350
Operating income (loss)		9,841			28,416		7,885			(5,485	)		40,657

Corporate items include amounts not allocable to the business segments. Corporate revenues consist principally of rent and the corporate operating loss includes general corporate expenses.