FOR RELEASE                                    CONTACT:  Chris Morris
July 26, 2005                                            Senior Vice President
3:05 p.m. Central Time                                   Chief Financial Officer
                                                         (972) 258-4525

             CEC ENTERTAINMENT, INC. REPORTS SECOND QUARTER RESULTS;
                    BOARD APPROVES $400 MILLION STOCK BUYBACK

IRVING,  TEXAS - CEC Entertainment,  Inc.  (NYSE:"CEC") today announced earnings
for the second quarter ended July 3, 2005.

Revenues for the second  quarter of 2005 increased to $168.4 million from $165.4
million in the second  quarter of 2004. Net income was $14.4 million in both the
second  quarter of 2005 and the second  quarter of 2004.  Diluted  earnings  per
share in the second  quarter of 2005 were $0.40 per share  compared to $0.37 per
share in the second quarter of 2004.

Revenues  for the first six  months of 2005  increased  to $382.5  million  from
$372.4  million in the first six months of 2004. Net income was $46.7 million in
the first  six  months of 2005 and  $45.8  million  in the same  period of 2004.
Diluted  earnings per share in the first six months of 2005 were $1.26 per share
compared to $1.17 per share in the first six months of 2004.

Chris Morris,  Senior Vice  President and Chief  Financial  Officer stated that,
"Total revenues in the second quarter increased $3.0 million over the prior year
due to new store  development.  Comparable  store  sales in the  second  quarter
decreased  2.1%. We believe the decline in comparable  store sales was primarily
due to unsuccessful  promotions in the quarter and the effect of higher gasoline
prices on the spending  decisions of our  customers.  Earnings per diluted share
increased  8.1% over the prior year.  During the first two quarters of 2005, the
Company  generated  operating  cash flow of $75  million,  invested  $34 million
primarily  in new and  existing  stores and  repurchased  $64 million of Company
stock.  Borrowings on our credit facility increased by $11 million. In July, the
Company  secured a $200 million  revolving  credit  facility with a term of five
years that  replaces  its  previous  $132.5  million  credit  facility  that was
scheduled to mature in December 2005."

Mr.  Morris  further  added,  "Based on  current  estimates,  we expect  diluted
earnings  per share to range from  $2.24 to $2.31 per share for the 2005  fiscal
year and $0.56 to $0.61 and $0.42 to $0.44 in the third and fourth  quarters  of
2005,  respectively.  Our estimates include the assumption that comparable store
sales are slightly negative to flat during the last half of the year."

The Company also  announced  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 $400 million.  The Company
recently  completed the purchase of $100 million of its common stock pursuant to
a stock buyback plan approved in August 2004. The Company's decision to commence
a new plan to purchase up to an additional  $400 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 that, "We believe
the continued  execution of our long-term  strategies of reinvesting in our core
stores,  continued new store development,  building on operational execution and




strategically repurchasing Company stock will drive long-term shareholder value.
The $400  million  stock  buyback  plan  approved by our Board is  significantly
higher than  previously  approved stock buyback plans.  The Board's  decision to
approve the stock  buyback  plan  reflects  their  confidence  in the  long-term
prospects  of the  Company  and their  belief in the  opportunity  to  provide a
long-term benefit to shareholders by share repurchases."

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,  success of its franchise
operations, negative publicity, fluctuations in quarterly results of operations,
including  seasonality,   government  regulations,   weather,  school  holidays,
commodity and labor costs.

CEC Entertainment,  Inc. operates a system of 500 Chuck E. Cheese's  restaurants
in 48 states, of which 455 are owned and operated by the Company. # # #








                                            CEC ENTERTAINMENT, INC.
                                  CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
                                       (Thousands, except per share date)


                                                        Quarter Ended                   Year to Date Ended
                                                  07/03/05         06/27/04          07/03/05         06/27/04
                                                  --------         --------          --------         --------
                                                                                         
Revenues:
     Food and beverage                           $ 109,455        $ 108,739         $ 248,499        $ 245,078
     Games and merchandise                          58,253           55,826           132,495          125,567
     Franchise fees and royalties                      685              852             1,480            1,713
     Interest income                                     8                7                13               14
                                                 ---------        ---------         ---------        ---------
                                                   168,401          165,424           382,487          372,372
                                                 ---------        ---------         ---------        ---------
Costs and expenses:
     Cost of sales:
        Food, beverage and related supplies         19,837           21,307            45,405           45,785
        Games and merchandise                        6,707            7,218            15,031           15,860
        Labor                                       48,622           47,688           102,447          100,927
     Selling, general and
        administrative expenses                     21,416           20,047            46,833           43,879
     Depreciation and amortization                  15,780           13,880            30,177           27,258
     Interest expense                                  984              485             1,707              968
     Other operating expenses                       31,659           31,436            65,214           63,387
                                                 ---------        ---------         ---------        ---------
                                                   145,005          142,061           306,814          298,064
                                                 ---------        ---------         ---------        ---------

Income before income taxes                          23,396           23,363            75,673           74,308

Income taxes                                         8,960            8,947            28,983           28,459
                                                 ---------        ---------         ---------        ---------
Net income                                       $  14,436        $  14,416         $  46,690        $  45,849
                                                 =========        =========         =========        =========

Earnings per share:
     Basic                                       $     .41        $     .38         $    1.31        $    1.21
     Diluted                                     $     .40        $     .37         $    1.26        $    1.17

Weighted average shares outstanding:
     Basic                                          35,255           37,507            35,736           37,910
     Diluted                                        36,473           38,604            36,963           39,107











                                       CEC ENTERTAINMENT, INC.
                                CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Thousands, except share amounts)

                                                                         July 3,          January 2,
                                                                           2005              2005
                                                                       -----------       -----------
                                                                       (unaudited)
                                                                                    
ASSETS

Current assets:
   Cash and cash equivalents.......................................     $   9,611         $  11,798
   Accounts receivable.............................................        15,141            13,482
   Inventories.....................................................        11,919            12,171
   Prepaid expenses................................................         9,144             7,444
   Deferred tax asset..............................................         1,763             1,763
                                                                        ---------         ---------
      Total current assets.........................................        47,578            46,658
                                                                        ---------         ---------

Property and equipment, net........................................       567,231           563,081
                                                                        ---------         ---------

Other assets ......................................................         1,122             2,278
                                                                        ---------         ---------
                                                                        $ 615,931         $ 612,017
                                                                        =========         =========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Current portion of long-term debt...............................     $     534         $  78,279
   Accounts payable................................................        22,927            24,294
   Accrued liabilities.............................................        32,957            36,329
                                                                        ---------         ---------
      Total current liabilities....................................        56,418           138,902
                                                                        ---------         ---------

Long-term debt, less current portion...............................       100,669            11,673
                                                                        ---------         ---------

Deferred rent......................................................        58,545            53,427
                                                                        ---------         ---------

Deferred tax liability.............................................        34,386            36,429
                                                                        ---------         ---------

Accrued insurance .................................................        10,750            10,856
                                                                        ---------         ---------

Shareholders' equity:
   Common stock, $.10 par value; authorized 100,000,000 shares;
      55,973,127 and 55,556,857 shares issued, respectively .......         5,597             5,556
   Capital in excess of par value..................................       257,823           245,991
   Retained earnings ..............................................       479,957           433,267
   Accumulated other comprehensive income .........................         1,333             1,476
   Less treasury shares of 20,921,268
      and 19,210,568, respectively, at cost........................      (389,547)         (325,560)
                                                                        ---------         ---------
                                                                          355,163           360,730
                                                                        ---------         ---------
                                                                        $ 615,931         $ 612,017
                                                                        =========         =========











                                     CEC ENTERTAINMENT, INC.
                                SUPPLEMENTAL FINANCIAL INFORMATION
                                           (Thousands)

                                                Quarter Ended              Year to Date Ended
                                           07/03/05       06/27/04       07/03/05       06/27/04
                                           --------       --------       --------       --------
                                                                               
Number of Company-owned stores:
   Beginning of period                        453            420            449            418
   New                                          1             10              5             12
   Company purchased franchise stores           1                             1
   Closed
                                             ----           ----           ----           ----
   End of period                              455            430            455            430


Number of franchise stores:
   Beginning of period                         45             48             46             48
   New                                          1              1              1              1
   Company purchased franchise stores          (1)                           (1)
   Closed                                                                    (1)
                                             ----           ----           ----           ----
   End of period                               45             49             45             49