Total revenues for the third quarter of fiscal 2000 were $77,439,000, up 2.5% from revenues of $75,519,000 for the same period during the prior year. Earnings from continuing operations were $533,000 or $0.02 per diluted share for the third quarter of fiscal 2000, over four times higher than earnings from continuing operations of $128,000 or $0.01 per diluted share for the comparable prior period. Net earnings were $881,000 or $0.03 per diluted share for the third quarter of fiscal 2000, up 71.7% from net earnings of $513,000 or $0.02 per diluted share for the same period in the prior year.  Continuing operations include The Marcus Corporation�s limited-service lodging, theatre and hotels and resorts divisions. The company has announced plans to sell its KFC restaurant operation, which has been classified as a discontinued business in accordance with current accounting pronouncements.

For the first nine months of fiscal 2000, total revenues were $265,400,000, a 4.4% increase from revenues of $254,138,000 during the same prior year period. Earnings from continuing operations were $18,320,000 or $0.61 per diluted share during the first nine months of fiscal 2000, compared to earnings from continuing operations of $18,843,000 or $0.62 per diluted share for the comparable prior period. Net earnings were $19,639,000 or $0.66 per diluted share during the first nine months of fiscal 2000, compared to net earnings of $20,593,000 or $0.68 per diluted share for the same period in fiscal 1999.
Operating income before depreciation and amortization (EBITDA) was $15,140,000 for the third quarter of fiscal 2000, a 5.9% increase from EBITDA of $14,302,000 for the third quarter of the prior year.  For the first nine months of fiscal 2000, EBITDA was $69,373,000, compared to EBITDA of $69,420,000 for the comparable prior period.

�We are pleased with the increase in earnings in the third quarter. Revenues and operating income increased in all three divisions. We are particularly encouraged by the results of our largest division, Baymont Inns Suites, which continued to improve,� said Stephen H. Marcus, chairman and chief executive officer of The Marcus Corporation. �The improved companywide performance is especially significant in view of the reduced travel during the period both before and after the Y2K computer changeover and the lack of movies with broad audience appeal during the holiday season.�

Results for Baymont Inns Suites continued to trend upward in the third quarter. �This was a significant quarter for several reasons. It is the first quarter of year-over-year improvement since the Baymont brand was introduced in January 1999 and it ends a period of nine consecutive quarters with decreased operating income from our limited-service lodging division. Revenue per available room (RevPAR) for comparable inns was up nearly 6% during the third quarter, compared to the same quarter a year ago. The improvement in RevPAR is due in large part to our new lobby breakfast program, which has enabled us to increase room rates while still remaining an excellent value. The roll-out of the lobby breakfast program was completed during the third quarter. This new feature has quickly become very popular with guests,� Marcus said.

Marcus said franchisee interest in Baymont Inns Suites continues to be strong. A total of 25 franchised properties are currently in development and nine properties are under construction, eight franchised and one company owned. Three new franchised inns opened during the third quarter, increasing the total to 172 properties, 95 company-owned and 77 franchised.

Revenues and operating income also increased in the company�s hotels and resorts division during the third quarter. �The most significant improvement was at the Miramonte Resort in Indian Wells, Calif., which continues to build momentum. Performance at this property is also benefitting from the fact that first-year pre-opening expenses are behind us. Our three other company-owned properties also performed well during what is historically a slow period for hotels,� said Marcus.

Marcus said the major addition to the Hilton Milwaukee City Center is moving forward in anticipation of its June 2000 opening. Construction is also continuing on the company�s new 238-room Hilton Madison at Monona Terrace in Madison, Wis., which is scheduled for completion in Spring 2001. �Early sales of vacation ownership units at the Grand Geneva Resort  Spa in Lake Geneva, Wis. are progressing
well. The first two buildings in the development are scheduled to open by the end of May and we expect strong interest in this development during the busy summer season,� Marcus said.

Marcus said the company continues to pursue the sale of its KFC restaurant business in order to focus on its core lodging and theatre operations. He said the company continued its stock repurchase program,
purchasing 376,000 shares of common stock since the end of the second quarter. Year-to-date, the company has repurchased a total of 428,000 shares. �Depending upon a number of factors including prevailing market conditions, we anticipate continuing to repurchase shares in the open market or in privately negotiated transactions. Our capital spending program is slowing down as we complete scheduled projects, especially in the theatre division. This gives us the financial flexibility to consider future share repurchases as opportunities arise,� he said.

In the theatre division, both revenues and income were up slightly in the third quarter. �There were a number of successful pictures, such as Toy Story 2, Stuart Little and The Green Mile, but overall the holiday season lacked an �event� movie and pictures with broad appeal. The absence of strong movies, combined with the fact that both Christmas and New Year�s fell on a weekend, reduced attendance during what is traditionally one of the strongest periods for motion picture operators,� said Marcus.
Marcus said 37 new theatre screens are under construction, with 29 of these scheduled to open by the company�s fiscal year end in late May. These include a new 16-screen UltraPlex� in the Minneapolis-St. Paul area and the company�s second UltraScreen� theatre in Madison, Wisconsin. �As a result of our investments in stadium seating and digital sound, our theatres are the state-of-the-art in our markets. Given good film product from Hollywood, such as the new hit Erin Brockovich, we are positioned to reap the rewards from our recent upgrades,� he said.

Headquartered in Milwaukee, Wis., The Marcus Corporation is comprised of four divisions: limited-service lodging, movie theatres, hotels/resorts and restaurants. The company operates or franchises 172 Baymont Inns Suites in 30 states, and a total of seven Woodfield Suites in Illinois, Wisconsin, Colorado, Ohio and Texas; 450 movie screens in Wisconsin, Ohio, Illinois and Minnesota, and one family entertainment center in Wisconsin; three hotels and a resort in Wisconsin, one hotel and a resort in California and one hotel in Minnesota; and 27 KFC and 3 KFC/Taco Bell 2-in-1 restaurants in Wisconsin.