CHICAGO – November 2, 2006 – Midway Games Inc. (NYSE: MWY) today announced results of operations for the three month period ended September 30, 2006. The Company also confirmed its prior revenue guidance and updated its earnings guidance for the full year ending December 31, 2006, as well as provided revenue and earnings guidance for the fourth quarter ending December 31, 2006.

Third Quarter Results

Net revenues for the 2006 third quarter were $27.4 million, compared with 2005 third quarter net revenues of $29.5 million. The 2006 third quarter loss applicable to common stock was $22.2 million which includes $1.0 million of stock option expense, or a loss of $0.24 per share, compared with a 2005 third quarter loss applicable to common stock of $29.1 million, or $0.33 per share.

Other highlights during the third quarter of 2006 include:

• Midway launched The Ant Bully for PlayStation 2, Nintendo GameCube, Game Boy Advance, and PC; Spy Hunter: Nowhere to Run for PlayStation 2 and Xbox; and The Grim Adventures of Billy & Mandy for PlayStation 2 and GameCube.
• Midway's real–time strategy PC title launched in June 2006, Rise & Fall: Civilizations at War, which topped the PC charts in the United Kingdom, recently won the prestigious "Best Strategy Game" award from the British Academy of Film and Television Arts, or BAFTA.

David F. Zucker, president and chief executive officer, commented, "We were pleased to exceed our financial expectations for the third quarter, and to continue our relationship with Warner Bros. with the third quarter release of The Ant Bully and The Grim Adventures of Billy & Mandy, and our scheduled release of the Happy Feet game in conjunction with the movie release mid–November."

Outlook

For the quarter ending December 31, 2006, Midway expects net revenues of approximately $86 million and net income of approximately $2 million. For the fourth quarter, Midway has already released Mortal Kombat: Armageddon for PlayStation 2 and Xbox, and Unreal Anthology for the PC. During the remainder of the quarter, the Company expects to release Happy Feet for multiple platforms; The Grim Adventures of Billy & Mandy, Rampage: Total Destruction, and The Ant Bully for the Nintendo Wii; Blitz: The League for the Xbox 360; and Blitz: The League Overtime, Mortal Kombat: Unchained, and Rush for the PlayStation Portable (PSP). For the year ending December 31, 2006, Midway continues to expect net revenues of $155 million, and is revising full year earnings expectations to a net loss of approximately $73 million, compared to our prior guidance of a net loss of approximately $70 million. This is primarily due to decreasing margins on current generation titles. The full year guidance includes approximately $3.5 million of stock option expense.

Mr. Zucker commented, "Our fourth quarter line–up demonstrates both our genre and platform diversity. We expect that 2007 will show the fruits of our investment over the last several years in next generation technology and our sales and marketing infrastructure, and we continue to focus our efforts to position the company for revenue and market share growth in 2007 and beyond."

Conference Call

Midway Games Inc. is hosting a conference call and simultaneous webcast open to the general public at 4:30 P.M. EST today, Thursday, November 2, 2006. The conference call number is (866) 510–0704 or (617) 597–5362 (international callers). The passcode for the call is 82744623. Please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call on the Internet at www.investor.midway.com or at www.earnings.com. Please log–on fifteen minutes in advance to ensure that you are connected prior to the call's initiation. Following its completion, a replay of the call can be accessed until November 9th by dialing (888) 286–8010 or (617) 801–6888 (international callers). The passcode for the replay is 79391706. Additionally, a replay of the call will be available for twelve months on the Internet via www.investor.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.

For More Information

Geoffrey Mogilner
Midway – Investor Relations
773–961–2222
gmogilner@midway.com

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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. The Company's actual results could differ materially from those described in the forward"looking statements as a result of a number of risks and uncertainties, including, without limitation, the performance 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 1A. Risk Factors" in the Company's Annual Report on Form 10–K for the year ended December 31, 2005, and in other 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 the Company 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.