THE MARCUS CORPORATION REPORTS INCREASED THIRD QUARTER
REVENUES AND OPERATING INCOME
Operating income more than triples to $6.3 million

Milwaukee, Wis., March 19, 2008..... The Marcus Corporation (NYSE: MCS) today reported increased revenues and operating income for the third quarter ended February 28, 2008.

Third Quarter Fiscal 2008 Highlights

• Total revenues for the third quarter of fiscal 2008 were $86,040,000, a 20.5% increase from revenues of $71,418,000 for the third quarter of fiscal 2007.

• Operating income was $6,257,000 for the third quarter of fiscal 2008, a 237.7% increase from operating income of $1,853,000 for the same period in the prior year.

• Net earnings were $1,785,000 or $0.06 per diluted common share for the third quarter of fiscal 2008, compared to net earnings of $4,028,000 or $0.13 per diluted common share for the third quarter of the prior year.

• Last year’s net earnings included pre-tax gains on the disposition of property, equipment and other assets of $5,519,000, related primarily to development gains on the sale of units at the company’s condominium hotel project in Las Vegas. Prior year results also benefited from historic tax credits related to the renovation of the Skirvin Hilton in Oklahoma City.

First Three Quarters of Fiscal 2008 Highlights

• Total revenues were $281,612,000 for the first three quarters of fiscal 2008, a 19.6% increase from revenues of $235,430,000 for the same period in the prior year.

• Operating income was $38,410,000 for the first three quarters of fiscal 2008, a 21.9% increase from operating income of $31,502,000 for the same period in fiscal 2007.

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• Net earnings were $16,456,000 or $0.54 per diluted common share for the first three quarters of fiscal 2008, compared to earnings of $27,826,000 or $0.90 per diluted common share for the comparable prior period.

• Last year’s net earnings included pre-tax gains on the disposition of property, equipment and other assets of $14,088,000, related to the sale of surplus movie theatre and restaurant properties and development gains on the sale of units at the company’s condominium hotel project in Las Vegas. Prior year results also benefited from historic tax credits related to the renovation of the Skirvin Hilton in Oklahoma City.

“We are pleased to report operating income up more than three-fold over the third quarter of last year. The strong performance was driven by solid increases in revenues and operating income in both of our divisions for the quarter,” said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation.

Marcus Theatres^®

“Revenues for Marcus Theatres increased 21.3% in the third quarter, due to a solid slate of films and the addition of 122 screens at 11 locations acquired in April 2007 from Cinema Entertainment Corporation (CEC). We are especially pleased with the results, given that this year’s third quarter did not include the Thanksgiving holiday weekend, which we had last year during this quarter,” said Marcus.

Marcus said the top performing films for Marcus Theatres in the third quarter were National Treasure: Book of Secrets, Alvin and the Chipmunks, I Am Legend and Juno. “In addition, the Hannah Montana/Miley Cyrus: Best of Both Worlds Concert in Digital 3D presented at two of our theatre locations in Wisconsin was a huge success. In response to the overwhelming demand, this run was extended from one week to three weeks,” said Marcus.

“In addition to the 3D tests at these locations, last week we announced a test of the Thomson Technicolor Digital Cinema technology at our theatre in Sturtevant, Wis. This digital cinema projection system will deliver razor-sharp images and dynamic digital sound to moviegoers and will enable a range of programming opportunities such as live concerts, sporting events and 3D,” said Marcus.

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He noted that the company opened its eleventh UltraScreen® at an existing 16-screen location in the Columbus, Ohio, area and purchased a portion of the Silk Film Buying Company of Minneapolis in the third quarter. Marcus Theatres is now providing film buying, booking and other related services for a total of 747 motion picture screens in six states.

“The motion picture line-up for spring and summer includes a number of potentially strong hits. Movies that have already opened well early in our fourth quarter include 10,000 B.C. and Dr. Seuss’ Horton Hears a Who!. Additional films opening before the end of our fiscal year include Iron Man, Speed Racer, The Chronicles of Narnia: Prince Caspian and Indiana Jones and the Kingdom of the Skull. Promising films for the summer season include Sex and the City, Kung Fu Panda, Get Smart, The Love Guru, Pixar’s Wall-E, Journey to the Center of the Earth 3D and the latest Batman film, The Dark Knight,” said Marcus.

Marcus Hotels and Resorts

“This was also a much-improved quarter for Marcus Hotels and Resorts. Revenues rose 19.5% in the third quarter due to new properties opened during the past year and increased management and development fees. Revenue per available room (RevPAR) for company-owned properties (excluding the recently opened Skirvin Hilton) increased 9.2% for the third quarter and 6.9% year-to-date,” said Marcus.

Marcus said the improved performance at the company’s newest properties, the InterContinental Milwaukee, the Skirvin Hilton in Oklahoma City and the Platinum Hotel & Spa in Las Vegas, also reflects $1.9 million of preopening expenses in the third quarter of last year that did not recur in the third quarter of the current year. He noted that the Skirvin Hilton is completing its first full year of operation and is performing very well.

“Our newest managed property, the new 256-room Hilton Minneapolis/Bloomington in Bloomington, Minn. opened in January. This property is in a great location in an upscale western suburb of the Twin Cities, near the popular Mall of America. It features our fifth ChopHouse restaurant, along with 9,200 square feet of meeting and banquet space and the latest technology and industry amenities. The Hilton Minneapolis/Bloomington is our 20^th property and 12^th management contract, increasing our total owned or managed room count to approximately 5,200 rooms,” said Marcus.

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He noted that the company-owned Four Points® by Sheraton Chicago Downtown/Magnificent Mile was recently named the 2007 Four Points by Sheraton Property of the Year. “Our hotel was selected from 125 Four Points by Sheraton branded properties in 21 countries to be recognized for overall excellence. When we opened this property about two years ago, our goal was to set a new standard for service, comfort and value in the Chicago market. This award recognizes the success we have achieved in meeting these objectives,” added Marcus.

Summary

“Along with our improved financial performance, we are continuing to move forward with our growth strategies. Marcus Theatres is continuing to add new UltraScreens and new technology. Marcus Hotels and Resorts is benefitting from new properties and management contracts added during the past year. Both of our divisions are continuing to pursue additional growth opportunities,” said Gregory S. Marcus, recently elected president of The Marcus Corporation.

“We repurchased 383,000 shares of our common stock during the third quarter, bringing our total number repurchased for the year-to-date to 828,000 shares. In January, the Board authorized the purchase of an additional 2,000,000 shares of our common stock, extending our existing share repurchase program. We continue to believe that repurchasing shares is a good investment for the company. With our strong cash flow and balance sheet, we believe that when timing and market conditions are appropriate, we can repurchase shares to enhance shareholder value while at the same time continuing to invest in our businesses to facilitate our long-term growth,” he added.

Conference Call and Webcast

Marcus Corporation management will host a conference call today, March 19, 2008, at 10:00 a.m. Central/11:00 a.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 1-617-614-3529 and entering the passcode 26238872. 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

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necessary audio software. The call will be available for telephone replay through Wednesday, March 26, 2008 by dialing 1-888-286-8010 and entering the passcode 38443087. The Webcast of the conference call will be archived on the company’s Web site until the next earnings release.

About The Marcus Corporation

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. The Marcus Corporation’s movie theatre division, Marcus Theatres^®, currently owns or manages 595 screens at 49 locations in Wisconsin, Illinois, Minnesota, Ohio, North Dakota and Iowa, and one family entertainment center in Wisconsin. The company’s lodging division, Marcus Hotels and Resorts, owns or manages 20 hotels, resorts and other properties in 10 states, with two additional properties under development. 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 that could cause results to differ materially from those expected, including, but not limited to, the following: (1) the availability, in terms of both quantity and audience appeal, of motion pictures for our theatre division, as well as other industry dynamics such as the maintenance of a suitable window between the date such motion pictures are released in theatres and the date they are released to other distribution channels; (2) the effects of increasing depreciation expenses and preopening and start-up costs due to the capital intensive nature of our businesses; (3) the effects of adverse economic conditions in our markets, particularly with respect to our hotels and resorts division; (4) the effects of adverse weather conditions, particularly during the winter in the Midwest and in our other markets; (5) the effects on our occupancy and room rates from the relative industry supply of available rooms at comparable lodging facilities in our markets; (6) the effects of competitive conditions in our markets; (7) our ability to identify properties to acquire, develop and/or manage and continuing availability of funds for such development; and (8) 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
	February 28, 2008			February 22, 2007			February 28, 2008			February 22, 2007
Revenues:
Rooms and telephone	$	16,358		$	14,361		$	71,280		$	64,482
Theatre admissions		29,423			23,431			87,361			71,147
Theatre concessions		14,443			11,747			42,946			35,382
Food and beverage		13,162			10,918			42,056			34,724
Other revenues		12,654			10,961			37,969			29,695
Total revenues		86,040			71,418			281,612			235,430
Costs and expenses:
Rooms and telephone		7,959			7,282			25,973			23,578
Theatre operations		24,681			19,585			71,626			57,605
Theatre concessions		3,473			2,630			10,797			7,858
Food and beverage		10,794			9,648			32,571			26,826
Advertising and marketing		4,593			4,602			14,900			14,183
Administrative		8,953			7,864			27,462			24,106
Depreciation and amortization		7,656			6,897			23,697			19,605
Rent		1,116			795			3,539			2,473
Property taxes		3,767			2,099			10,895			7,346
Preopening expenses		9			2,010			318			3,216
Other operating expenses		6,782			6,153			21,424			17,132
Total costs and expenses		79,783			69,565			243,202			203,928
Operating Income		6,257			1,853			38,410			31,502
Other Income (expense):
Investment income		276			727			982			2,184
Interest expense		(3,566	)		(3,359	)		(11,502	)		(9,836	)
Gain on disposition of property, equipment and other assets		155			5,519			48			14,088
Equity earnings (losses) from unconsolidated joint ventures		(184	)		24			(322	)		(1,375	)
		(3,319	)		2,911			(10,794	)		5,061
Earnings from continuing operations
before income taxes		2,938			4,764			27,616			36,563
Income taxes		1,153			510			11,160			8,338
Earnings from continuing operations		1,785			4,254			16,456			28,225
Losses from discontinued operations,
net of income taxes		--			(226	)		--			(399	)
Net earnings	$	1,785		$	4,028		$	16,456		$	27,826
Earnings per common share - diluted:
Continuing operations	$	0.06		$	0.14		$	0.54		$	0.91
Discontinued operations	$	--		$	(0.01	)	$	--		$	(0.01	)
Net earnings per share	$	0.06		$	0.13		$	0.54		$	0.90
Weighted average shares outstanding - diluted		29,823			30,872			30,372			30,805

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THE MARCUS CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)

	(Unaudited) February 28, 2008		(Audited) May 31, 2007
Assets:
Cash and cash equivalents	$	9,503	$	12,018
Cash held by intermediaries		811		5,749
Accounts and notes receivable		18,145		19,956
Refundable income taxes		354		5,939
Deferred income taxes		552		1,056
Condominium units held for sale		6,948		7,320
Other current assets		5,376		6,340
Assets of discontinued operations		--		975
Property and equipment, net		552,221		559,785
Other assets		76,751		79,245
Total Assets	$	670,661	$	698,383
Liabilities and Shareholders’ Equity:
Accounts and notes payable	$	14,052	$	24,481
Taxes other than income taxes		11,595		11,215
Other current liabilities		33,584		31,466
Current maturities of long-term debt		31,904		57,250
Liabilities of discontinued operations		--		2,731
Long-term debt		211,012		199,425
Deferred income taxes		28,924		29,376
Deferred compensation and other		24,415		22,930
Shareholders’ equity		315,175		319,509
Total Liabilities and Shareholders’ Equity	$	670,661	$	698,383

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

	Theatres		Hotels/ Resorts			Corporate Items			Continuing Operations Total		Discontinued Operations		Total
13 Weeks Ended February 28, 2008
Revenues	$	46,116	$	39,554		$	370		$	86,040		--	$	86,040
Operating income (loss)		8,852		(347	)		(2,248	)		6,257		--		6,257
Depreciation and amortization		3,754		3,736			166			7,656		--		7,656
13 Weeks Ended February 22, 2007
Revenues	$	38,026	$	33,112		$	280		$	71,418	$	245	$	71,663
Operating income (loss)		8,281		(4,236	)		(2,192	)		1,853		3		1,856
Depreciation and amortization		3,079		3,647			171			6,897		--		6,897
39 Weeks Ended February 28, 2008
Revenues	$	137,298	$	143,251		$	1,063		$	281,612		--	$	281,612
Operating income (loss)		28,532		16,719			(6,841	)		38,410		--		38,410
Depreciation and amortization		11,216		11,969			512			23,697		--		23,697
39 Weeks Ended February 22, 2007
Revenues	$	112,543	$	121,977		$	910		$	235,430	$	3,935	$	239,365
Operating income (loss)		25,289		12,916			(6,703	)		31,502		15		31,517
Depreciation and amortization		8,715		10,304			586			19,605		12		19,617

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. Corporate information technology costs and accounting shared services costs are allocated to the business segments based upon several factors, including actual usage and segment revenues.

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