## Not “Why?” But “When?”. 

Some may question the need for such an aggressive capital and growth plan, but we believe the question is not so much, “Why?,” as “When?” Our 27 years of experience has proven time and again that when we invest in improving our product and enhancing the overall Chuck E. Cheese’s experience, guests reward us with increased sales and frequency that drives success not just this year or next, but generation after generation. 

## More Fun = More Value = More Families. 

An important component of our brand loyalty lies in the value proposition of our concept. Among today’s many entertainment choices for children, Chuck E. Cheese’s is unique. Our locations offer a safe, wholesome environment where families can dine and play together. We also provide tremendous value for the dollar. This makes Chuck E. Cheese’s accessible for most American families, and positions us as the Birthday Capital of the Universe$^{®}$ with more than 2 million parties hosted annually. Value is the key to guest frequency and we achieve it with a variety of in-store initiatives. Our value packages combine meals, drinks and tokens for a single price. We offer numerous free attractions — from our ever-popular Skytubes$^{®}$ to our live stage shows with Chuck E. Cheese and our star cast. Our “More Fun” sales initiative is a hallmark of our value programs. All games and rides require just one token and kids can choose from a better and wider selection of prizes. In 2004, we built on the popularity of “More Fun” with our “More Fun II” promotion. These seasonal traffic-builders promised a free token to every child who visited during the promotion. Our perceived value to parents is also evident in what we value — like education. We underwrite quality children’s educational programming, like PBS’ Clifford the Big Red Dog , Barney , Arthur , Berenstain Bears , and Caillou . We also offer free tokens for good grades. And in 2004, we joined with parent-teacher groups to help with fundraising efforts for books, equipment, supplies and field trips. Our “School Night” events not only increase traffic in our restaurants during traditionally slow week parts, but also help to build a sense of community and partnership with our key constituents. A percentage of the evening’s proceeds benefit the school’s fundraising cause. We are encouraged by early participation and response and plan to promote the program nationally in 2005.  

