CEC Entertainment, Inc. Announces $50 Million Stock Buyback Plan.

Business Editors

IRVING, Texas--(BUSINESS WIRE)--July 29, 2003

CEC Entertainment, Inc. (NYSE:CEC) announced today that its Board of Directors has approved a new plan to purchase, from time to time in the open market or through negotiated trades with persons who are not affiliates of the Company, shares of the Company's common stock at an aggregate purchase price of up to $50 million. The Company also announced that it recently completed the purchase of up to $25 million of its common stock pursuant to a stock buyback plan approved in June 2003. The Company's decision to commence a new plan to purchase up

to an additional $50 million of its common stock was based on its belief that its common stock represents an attractive long-term investment opportunity for the Company. The timing and extent of the purchases will depend on market conditions. The funds required for the stock purchase will be provided from the Company's cash balances, operating cash flow and as appropriate, the Company's credit facility.

Richard M. Frank, Chairman and Chief Executive Officer stated, "Strong operating cash flow of $86 million during the first half of 2003 enabled the Company to fund capital expenditures of $42 million, reduce debt by $31 million and repurchase $17 million of treasury shares. Year to date, the Company has repurchased $36 million of treasury shares. The Board's decision to approve a $50 million buyback plan reflects their confidence in the long-term prospects of the Company and our ability to successfully execute our strategic plan and drive long-term shareholder value."

Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on CEC's operating results, performance or financial condition are its ability to implement its growth strategies, national, regional and local economic conditions affecting the restaurant/entertainment industry, competition within each of the restaurant and entertainment industries, store sales cannibalization, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs.

CEC Entertainment, Inc. operates a system of 445 Chuck E. Cheese's restaurants in 47 states, of which 394 are owned and operated by the Company.