PopStar Guitar

London – October 20th , 2008 - Midway Games Ltd., a subsidiary of Midway Games Inc. (NYSE: MWY), today announced a European distribution deal for the new music rhythm game, PopStar Guitar™, from XS Games.

Featuring songs from top pop music stars including 3 Doors Down, Simple Plan, Blink 182 and many more, PopStar Guitar allows players to unlock their inner pop celebrity and star as the lead guitarist in their very own band. Expected to ship in November 2008, PopStar Guitar will be available for Wii™, featuring the AirG, an exciting new peripheral that turns the Wii Remote into an air guitar.

“The popularity of music rhythm games is at an all time high, but to date the games have primarily featured hard core metal, classic and alternative rock music,” said Steve Grossman, chief executive officer of XS Games. “With popular songs from today’s top pop artists, PopStar Guitar is a game the whole family can enjoy. We’ve also created a dynamic new air guitar game play experience with our AirG peripheral for Wii, allowing players to have a blast as they unleash their inner pop star.”

PopStar Guitar developed by Broadsword Interactive features a single player Career Mode, along with single player and multi-player mini-games. The game takes the player on a musical journey that starts with forming a garage band to playing at 25 unique venues and eventually performing in the worldwide “Battle of the Bands” contest. Twelve playable characters are featured in the game and can be customized to give the band its own unique look. PopStar Guitar features 60 pop songs, including several masters performed by the original artists.

Martin Spiess, Executive Vice President - International, Midway Games Ltd, said, “PopStar Guitar is perfectly aligned with the mainstream console demographic and the genre performs particularly well in Europe. We believe that Midway’s dynamic marketing approach will ensure the game is one of the year’s successes.”

# # #

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.

About XS Games

XS Games is a leading publisher of entertainment software with a quality portfolio of multiplatform games for Wii™, PLAYSTATION®2, Nintendo DS and PC. XS Games has publishing operations across North America and Europe (France, Germany, Spain, UK) and Australia.

NINTENDO DS, Wii AND THE Wii LOGO ARE TRADEMARKS OF NINTENDO.

About Broadsword Interactive

Broadsword Interactive established in 1995 is a leading developer of entertainment software based in Aberystwyth, Wales. The company designs and develops software for all current consoles as well as PC and iPhone.

POP STAR GUITAR and AIRG are trademarks of XS Games Ltd.

NINTENDO WII is trademark of Nintendo. ©2006 Nintendo.

All other trademarks are the property of their respective owners.

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 that involves 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 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. Business - Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, and in any more recent 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 Midway 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.

For More Information Contact:

Phil Robinson

Sr. Media Relations Manager – UK

Midway Games Ltd

Phone: +44 0 207 382 7720

probinson@midway.com

Danielle Woodyatt/Lunch PR

phone+44 1789 841167

danielle@lunchpr.com