Marcus Hotels And Resorts Selected To Manage Luxury Hotel In Indiana´s Carmel City Center

MILWAUKEE, WIS./COLUMBUS, OHIO, September 12, 2007-- Marcus Hotels and Resorts, a division of The Marcus Corporation (NYSE: MCS), today announced that it has been selected by Pedcor City Center Development Company to manage a luxury boutique hotel that is part of Carmel City Center, a master-planned, multi-use development located in Carmel, Indiana. In addition, the company will provide technical development and pre-opening services. This independent hotel will be the centerpiece of the one million square foot, multi-million dollar project that is expected to quickly become a landmark destination in this upscale city just north of Indianapolis. The hotel will feature 120-140 rooms, several food and beverage outlets, a banquet hall, meeting space and a luxury spa. ”

“Marcus Hotels and Resorts has extensive experience in developing and positioning luxury, urban and suburban hotels and operates some of the most well respected properties throughout the Midwest and the country,” said Bruce Cordingley, Pedcor´s CEO. “We believe their expertise, coupled with the potential economies of scale and synergies with their other hotels in the region, make them the ideal choice for this exciting, new project.

Carmel City Center is a public/private partnership between the City of Carmel and Pedcor City Center Development Company with direction and oversight from the Carmel Redevelopment Commission. A destination like no other in central Indiana, the project will offer the appeal of a neighborhood and the vibrancy of a downtown. The hotel will be complemented by 230,000 square feet of specialty retail, 170,000 square feet of premiere downtown office space, 300 luxury residential units, a world class, 1,600 seat performance hall, a 500 seat performing arts theater, spectacular green spaces and the ever popular Monon Trail.

Marcus Hotels and Resorts will provide technical development expertise and input for the design and concepting of the hotel, as well as pre-opening services. “A hotel is arguably the most complex of all real estate classes in terms of design and operations,” said Bill Otto, president of Marcus Hotels and Resorts. “Our goal is to provide input into the important design elements that will make the hotel both unique and highly functional.”

“We believe Carmel Center will become one of the most popular urban destinations in the Midwest,” Otto added. “We want to create a luxury lodging experience that will appeal to the most sophisticated traveler, yet maintain the city’s friendly, welcoming Midwest roots. We want to provide an environment that will become a magnet for social events and have broad appeal to both business and leisure travelers.”

Planning for the hotel is expected to get underway shortly, with opening scheduled in 2010.

Marcus Hotels and Resorts owns or manages a distinctive portfolio of 20 hotels, resorts and other properties, with two additional hotels under development. The company owns eight hotels and resorts, is a third-party manager for 12 hotels, resorts and other properties and is providing technical services for the development of a Hilton hotel in Bloomington, Minn. and an independent luxury hotel in Carmel, Ind.

Headquartered in Milwaukee, Wis., The Marcus Corporation is a leader in the lodging and entertainment industries. In addition to its Marcus Hotels and Resorts division, the company´s movie theatre division, Marcus Theatres®, owns or manages 594 screens at 49 locations in Wisconsin, Illinois, Minnesota, Ohio, North Dakota and Iowa, and one family entertainment center 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 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; (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; and (9) the successful integration of the Cinema Entertainment Corporation theatres into our theatre circuit. 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.