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                                                 Contact: Lawrence X. Taylor III
                                                                  (712) 328-7801

               STUART ENTERTAINMENT FILES REORGANIZATION PETITION

         WILMINGTON, Delaware August 13, 1999 -- Stuart Entertainment, Inc.
d/b/a Bingo King (OTC Bulletin Board: STUA) ("Stuart") filed a petition for
relief under Chapter 11 of the Bankruptcy Code (the "Chapter 11 Case") in the
United States Bankruptcy Court for the District of Delaware in order to effect
the Restructuring Agreement (the "Agreement"), dated May 21, 1999, between the
holders (the "Noteholders") of its $100 million 12 1/2% Senior Subordinated
Notes due 2004 (the "Notes") and Stuart. As previously announced, Stuart did not
make the May 15 interest payment with respect to the Notes. However, pursuant to
the Agreement, the Noteholders have agreed to refrain from taking any action to
enforce the Notes or the obligations of Stuart.

         Under the Agreement, upon effectiveness (the "Effective Date") of the
Joint Plan of Reorganization (the "Plan"), the holders of the Notes will
receive, pro-rata, 100% of the common stock to be authorized under Stuart's
amended and restated Certificate of Incorporation to be filed with the Delaware
Secretary of State after the Bankruptcy Court approves the Plan ("New Common
Stock"), subject to dilution of approximately 10% on a fully-diluted basis by
shares reserved for issuance under options to be issued to Stuart's executive
management. The existing equity holders of Stuart will have their shares
cancelled and will receive a pro-rata portion of $150,000 in cash.

         Joseph M. Valandra, Chairman and Chief Executive Officer of the
company, said: "The filing of the Plan of Reorganization today is a crucial next
step in the revitalization of the company. We are confident that with the
support of a majority of our Noteholders, we can emerge quickly from Chapter 11.
As reorganized, the company will be a stronger company that will continue to
compete vigorously in all of our markets. This process will protect the
continuing interests of our customers, suppliers and employees in the viability
of the company's business."

         Under the Plan, all persons who hold, together with all affiliates of
such persons, $500,000 or less in principal amount of Notes will receive a cash
payment equal to 25% of such Noteholder's allowed claim in lieu of New Common
Stock, unless such Noteholder elects to receive New Common Stock. Stuart will
fund up to $3 million of such cash payments ("Company Funding"), with the
remainder of the funding to be supplied by Contrarian Capital Management, LLC
("Contrarian") pursuant to a Standby Funding Commitment. Under such commitment,
Contrarian will receive, in exchange for any such funding provided, an allowed
claim as a Noteholder, thereby entitling Contrarian to an additional pro rata
distribution of New Common Stock under the Plan.


Stuart press release August 16, 1999                                          1
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         The Agreement also provides for certain key executive officers of
Stuart to receive vested options to purchase 4% of the outstanding New Common
Stock, and performance based incentive options to purchase 6% of the outstanding
New Common Stock as of the Effective Date of the Plan on a fully diluted basis.
These percentages are subject to increase based on the amount of Company
Funding, and the accretive effect of such funding, in accordance with a formula
set forth in the Plan.

         Additionally, under the Agreement, the Noteholders have agreed to
support the payment of all trade claims in the ordinary course of Stuart's
business. As a result, Stuart's trade creditors will not be impaired or
negatively impacted by the contemplated restructuring.

         Mr. Valandra went on the say: "We are pleased that the Noteholders have
agreed with the company to support the full payment of our trade creditors. This
allows the company to continue our business on a normal basis and displays
confidence in the ongoing operational and financial performance of the company."

         The Plan is subject to numerous conditions, and no assurance can be
given that the consensual restructuring provided for in the Agreement and the
Plan or any other consensual restructuring will be finalized or that any
restructuring which is completed will not be on terms materially different from
those contained in the Agreement and the Plan.

         Stuart is a worldwide leader in the manufacture of bingo paper,
pulltabs and related electronic gaming equipment and supplies, with locations in
the United States, Canada and Mexico. Its subsidiaries include Bazaar & Novelty,
Canada's largest supplier of bingo paper and related supplies, and Video King, a
major supplier of fixed base electronic gaming systems.

         Information provided herein by Stuart may contain "forward-looking"
information, as that term is defined by the Private Securities Litigation Reform
Act of 1995 (the "PSLRA"). These cautionary statements are being made pursuant
to the provisions of the PSLRA and with the intention of obtaining the benefits
of the "safe harbor" provisions of the PSLRA. Stuart cautions investors that any
forward-looking statements made by Stuart are not guarantees of future
performance and that actual results may differ materially from those in the
forward-looking statements as a result of various factors, including but not
limited to risks or uncertainties detailed in Stuart's filing with the
Securities and Exchange Commission. Stuart undertakes no obligation to publicly
update or revise any forward-looking statements.


Stuart press release August 16, 1999                                          2