Midway Games to File Counterclaims.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 16, 2003

Midway Games Inc. (NYSE:MWY) today commented on a lawsuit filed against its subsidiary, Midway Home Entertainment Inc., in Los Angeles Superior Court on May 13, 2003 by Pandemic Studios, LLC.

Midway terminated

its agreement with Pandemic effective May 13, 2003 for Pandemic's failure to perform pursuant to the terms of the agreement between the two companies. Midway believes the suit filed by Pandemic is an attempt by Pandemic to improperly use the courts to profit despite their failure to perform under the agreement.

Midway believes Pandemic's claims are without merit. Midway intends to vigorously defend itself against the suit and will seek to recover all costs and expenses imposed on it by Pandemic resulting from the lawsuit. Additionally, Midway intends to file counterclaims against Pandemic.

Midway Games Inc. is a leading developer and publisher of interactive entertainment software. Midway video games are available for play on all major video game platforms including the PlayStation(R)2 computer entertainment system, Xbox(TM) video game system from Microsoft, and Nintendo GameCube(TM) and Game Boy(R) Advance.

This press release contains forward-looking statements concerning future business conditions and the outlook for Midway Games Inc. (the "Company") based on currently available information that involve 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, technological changes, dependence on major platform manufacturers and other risks more fully described under "Item 1. Business - Risk Factors" in the Company's current Annual Report on Form 10-K and the more recent filings made by the Company with the Securities and Exchange Commission.