NEWS RELEASE

[GRAPHIC OMITTED] [MARCUS CORPORATION LOGO]

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

THE MARCUS CORPORATION REPORTS INCREASED FISCAL 2004 RESULTS
Earnings reach six-year high; revenues and operating income up in all three divisions

Milwaukee, Wis., July 22, 2004…..The Marcus Corporation (NYSE: MCS) today reported increased revenues and earnings for the fourth quarter and fiscal year ended May 27, 2004.

Total revenues for the fourth quarter of fiscal 2004 were $99,333,000, a 2.9% increase from revenues of $96,565,000 for the fourth quarter of the prior year. Net earnings were $4,579,000 or $0.15 per diluted share for the fourth quarter of fiscal 2004, up 70.7% from net earnings of $2,682,000 or $0.09 per diluted share for the comparable prior period.

For fiscal 2004, total revenues were a record $409,207,000, a 3.1% increase from revenues of $396,915,000 in fiscal 2003. Earnings from continuing operations and net earnings were $24,611,000 or $0.82 per diluted share in fiscal 2004, a 27.5% increase from earnings from continuing operations of $19,307,000 or $0.66 per diluted share and a 19.7% increase from net earnings of $20,556,000 or $0.70 per diluted share in fiscal 2003. Continuing operations include The Marcus Corporation’s theatre, limited-service lodging and hotels and resorts divisions. The company’s fiscal 2003 results include a pre-tax investment loss of $2.6 million or $0.05 per diluted share related to loans to and investments in joint ventures.

“We are very pleased with the improvement in our fiscal 2004 results. Net earnings per share reached the highest level in six years, revenues were an all-time high and operating income increased in all three divisions. Marcus Theatres achieved its third consecutive record year. We were particularly pleased that the performance in both of our lodging divisions was the best in the past three years,” said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.

“Marcus Theatres’ record revenues and operating income for fiscal 2004 reflected the steady stream of hit movies throughout the year. Box office, as well as concession revenues, reached record levels for the year,”

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said Marcus. He noted that the division’s fourth quarter results were boosted by the popularity of The Passion of the Christ and Shrek 2.

“The five top-grossing films in fiscal 2004 for Marcus Theatres were The Lord of the Rings: The Return of the King, Finding Nemo, The Passion of the Christ, Pirates of the Caribbean and Elf. Marcus noted that the fiscal 2004 results do not include the traditionally strong Memorial Day holiday, which was included in the comparable fiscal 2003 results.

“Marcus Theatres’ fiscal 2004 results also benefited from an increase in ancillary revenues, primarily pre-show advertising. Cinema pre-show entertainment and advertising is one of the fastest growing forms of media advertising because it is able to target very specific audience demographics. As further evidence of our belief in the potential for this revenue source, in the fourth quarter the division purchased a minority equity interest in Cinema Screen Media, a cinema advertising company that provides pre-show entertainment on our screens and represents over 3,000 screens nationwide,” said Marcus.

Marcus said the summer movie season is off to an extremely good start, with record box-office weeks for the division over the Memorial Day and July 4^th holidays. “Our box-office revenues were up in six of the first seven weeks of our fiscal 2005 first quarter. Top pictures included The Day After Tomorrow, Harry Potter and the Prisoner of Azkaban and Spider-Man 2. I, Robot opened strong this past weekend and there are a number of potential hits still to come later in the summer. These include The Bourne Supremacy, The Village, Alien vs. Predator, The Manchurian Candidate, Catwoman and Collateral,” said Marcus.

In the company’s lodging business, Marcus Hotels and Resorts achieved a 5.9% increase in revenue per available room (RevPAR) in fiscal 2004, due primarily to increased occupancy. The division also achieved record revenues and its highest operating income since fiscal 2001, in spite of slightly lower fourth quarter results.

Marcus said the division’s fourth quarter results were impacted by delays in opening the new spa at the Miramonte Resort in Indian Wells, California, the company’s share of expenses related to the new joint venture project in Las Vegas and lower revenues than the prior year quarter for the Marcus Vacation Club timeshare development at the Grand Geneva Resort & Spa in Lake Geneva, Wisconsin.

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“Since its May opening, the new spa at the Miramonte Resort has been very well received by our guests. The Well^™ is a luxury destination spa that was designed to further enhance this property with a distinctive approach to relaxation and rejuvenation,” said Marcus. “In addition, the division continues to move ahead with several key projects. The Platinum Suite Hotel & Spa, our joint-venture condominium development in Las Vegas, has sold out in a matter of months. Groundbreaking for this upscale project, just one block off the strip, is expected to commence in early fall. We are also proceeding with our participation in a joint venture to restore and then manage the Skirvin Hotel in Oklahoma City, the oldest existing hotel in Oklahoma. This project is a perfect fit for us because it builds on the division’s established expertise in renovating and managing historic properties.”

Baymont Inns & Suites also achieved increased revenues and earnings in fiscal 2004. RevPAR for comparable properties increased 4.0% in the fourth quarter and 1.4% for fiscal 2004, reflecting increased occupancy as the lodging business continues to improve.

On July 15, The Marcus Corporation announced plans to sell its limited-service lodging division to La Quinta Corporation of Dallas, Texas, for approximately $395 million in cash, excluding certain joint ventures and subject to certain adjustments. The transaction is expected to close in late summer or early fall, subject to customary closing conditions, consents and approvals.

“As we indicated in our announcement release, the sale confirms the underlying value of our real estate holdings and our philosophy to own the majority of our real estate. The transaction is consistent with our commitment to maximize shareholder value and to manage for the long term,” said Marcus.

Marcus said the company further strengthened its balance sheet in fiscal 2004. “We ended the year with a ratio of debt to total capitalization of under 38%, the lowest in eight years. We increased our already strong cash flow, while continuing to reinvest in our properties to keep them fresh and current,” said Marcus.

“We are encouraged by the improvement in the economy and the increases in occupancy in both of our lodging divisions. Business travel is picking up, as reflected in our advance bookings. Our theatre division achieved another record year and the upcoming film product through the remainder of the summer appears strong,” said Marcus.

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“We will be actively evaluating potential growth opportunities for both Marcus Hotels and Resorts and Marcus Theatres, as well as other potential investments and uses of the funds from the sale of the limited-service lodging division. We are committed to growing our two remaining divisions and we believe the addition of this significant amount of capital opens the doors to many opportunities to expand these businesses and to further enhance shareholder value,” he added.

Marcus Corporation management will host a conference call today, July, 22, 2004, 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 1-913-981-4900. 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, July 29, 2004 by dialing 1-888-203-1112 and entering the passcode 520233. The Webcast of the conference call will be archived on the company’s Web site until the next earnings release.

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 488 screens at 45 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 complete the proposed transaction to sell the limited-service lodging division; (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
(in thousands, except per share data)

	13 Weeks Ended						52 Weeks Ended
	May 27, 2004			May 29, 2003			May 27, 2004			May 29, 2003
	(Unaudited)			(Unaudited)			(Unaudited)
Revenues:
Rooms and telephone	$	44,444		$	42,896		$	175,112		$	172,002
Theatre admissions		23,492			22,074			101,144			98,811
Theatre concessions		10,820			10,170			46,696			45,590
Food and beverage		8,393			7,673			36,602			33,487
Other revenues		12,184			13,752			49,653			47,025
Total revenues		99,333			96,565			409,207			396,915
Costs and expenses:
Rooms and telephone		21,496			20,932			81,837			79,816
Theatre operations		17,966			17,672			77,944			76,371
Theatre concessions		2,295			2,273			10,209			10,198
Food and beverage		7,097			6,542			29,058			26,465
Advertising and marketing		7,497			8,078			28,484			29,517
Administrative		10,900			10,414			41,900			40,781
Depreciation and amortization		11,839			11,253			46,036			45,365
Rent		630			562			2,443			2,407
Property taxes		3,848			3,840			15,338			15,204
Pre-opening expenses		150			39			423			60
Other operating expenses		6,016			6,232			22,111			21,346
Total costs and expenses		89,734			87,837			355,783			347,530
Operating income		9,599			8,728			53,424			49,385
Other income (expense):
Investment income (loss)		327			184			1,738			(158	)
Interest expense		(4,271	)		(4,536	)		(16,874	)		(19,642	)
Gain (loss) on disposition of property,
equipment and investments in joint
ventures		1,415			(748	)		2,174			2,111
		(2,529	)		(5,100	)		(12,962	)		(17,689	)
Earnings from continuing operations
before income taxes		7,070			3,628			40,462			31,696
Income taxes		2,491			979			15,851			12,389
Earnings from continuing operations		4,579			2,649			24,611			19,307
Discontinued operations:
Gain on sale of discontinued operations,
net of applicable income taxes		--			33			--			1,249
Net earnings	$	4,579		$	2,682		$	24,611		$	20,556
Earnings per share - basic:
Continuing operations	$	0.15		$	0.09		$	0.83		$	0.66
Discontinued operations		--			--			--			0.04
Net earnings per share	$	0.15		$	0.09		$	0.83		$	0.70
Earnings per share - diluted:
Continuing operations	$	0.15		$	0.09		$	0.82		$	0.66
Discontinued operations		--			--			--			0.04
Net earnings per share	$	0.15		$	0.09		$	0.82		$	0.70
Weighted average shares outstanding:
Basic		29,775			29,457			29,630			29,388
Diluted		30,072			29,597			29,850			29,549

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THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)

	(Unaudited)		(Audited)
	May 27, 2004		May 29, 2003
Assets:
Cash and cash equivalents	$	9,629	$	6,039
Accounts and notes receivable		15,757		29,685
Refundable income taxes		--		4,032
Real estate and development costs		6,438		5,338
Other current assets		6,328		5,771
Property and equipment - net		654,479		655,803
Other assets		52,238		48,789
Total Assets	$	744,869	$	755,457
Liabilities and Shareholders' Equity:
Accounts and notes payable	$	19,582	$	22,188
Income taxes		1,172		--
Taxes other than income taxes		13,717		13,682
Other current liabilities		23,423		18,110
Current maturities of long-term debt		26,321		72,906
Long-term debt		210,801		203,307
Deferred income taxes		40,410		38,768
Deferred compensation and other		15,720		16,596
Shareholders' equity		393,723		369,900
Total Liabilities and Shareholders' Equity	$	744,869	$	755,457

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

	Limited- Service Lodging		Theatres		Hotels/ Resorts		Corporate Items			Total
13 Weeks Ended May 27, 2004
Revenues	$	33,408	$	36,392	$	29,212	$	321		$	99,333
Operating income (loss)		3,082		8,687		407		(2,577	)		9,599
13 Weeks Ended May 29, 2003
Revenues	$	31,875	$	34,158	$	30,240	$	292		$	96,565
Operating income (loss)		1,682		7,746		935		(1,635	)		8,728
52 Weeks Ended May 27, 2004
Revenues	$	127,781	$	155,732	$	124,471	$	1,223		$	409,207
Operating income (loss)		13,821		38,933		9,003		(8,333	)		53,424
52 Weeks Ended May 29, 2003
Revenues	$	126,612	$	150,383	$	118,490	$	1,430		$	396,915
Operating income (loss)		11,523		36,162		8,820		(7,120	)		49,385

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.

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