The Company�s plan of reorganization under Chapter 11 of the US Bankruptcy Code became effective today when all documents and actions contemplated by the plan were finalized. The Company recently sold its Times Square retail unit for $30 million cash, eliminating the need for bridge loan financing; however, the timing of the sale caused the Company to delay its emergence from bankruptcy. As previously described, as a result of the reorganization, all existing common stock of the Company has been cancelled in exchange for 200,000 warrants to purchase new common stock in the reorganized Company. A group of investors, organized by Robert Earl, the Company�s Chairman and CEO, invested $30 million into the Company for the right to direct ownership of 7 million shares of new common stock (70%). The balance of the outstanding shares (3 million), together with $47.5 million in cash and $60 million in PIK Notes were distributed to the former bondholders in exchange for the cancellation of approximately $282 million in debt.

A portion of the new common stock distributed to the bondholders is exempt from registration and is freely tradable.  The new common stock will be trading on the over-the-counter market on the NASDAQ Bulletin Board until such time as the Company receives notification that its shares have been accepted for listing on a stock exchange, which is expected to be within 60 days.

Mr. Earl is looking forward to placing Planet Hollywood back in the spotlight. �The reorganization has provided $30 million in new investment, $25 million in new credit facilities and has significantly reduced the outstanding debt and onerous obligations that were a financial burden on the Company,� said Mr. Earl. �With the reorganization and store closings behind us, Planet Hollywood is now positioned to move ahead with its plans to rapidly revitalize the Company.�

�In addition, Planet Hollywood is planning on making several exciting announcements in the coming weeks concerning senior management, celebrities, new restaurant locations and its website launch. My management team is now able to completely focus on our significant portfolio of 34 company-owned restaurants and 32 franchised units and returning Planet Hollywood to its former glory and preeminent position in the themed restaurant arena, and to help restore confidence in the entertainment sector.� Planet Hollywood is the creator and worldwide developer of a consumer brand that will capitalize on the universal appeal of movies, TV, sports and other leisure-time activities. The Company�s worldwide operations offer products and services in the restaurant, retail, leisure and entertainment sectors.

Certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.