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Tuesday, 02/20/2007 9:03:20 AM

Tuesday, February 20, 2007 9:03:20 AM

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uWink Issues Stockholder Letter Detailing Progress of Business

Tuesday February 20, 8:00 am ET

LOS ANGELES--(BUSINESS WIRE)--uWink, Inc. (OTCBB:UWNK - News), a publicly-held digital entertainment company, today provided shareholders with a letter from CEO Nolan Bushnell updating them on the progress of the business since the opening of the company's first restaurant.
"Today, I am very proud to announce that we believe that uWink has delivered strong proof of concept for the next innovation in the restaurant industry," stated Nolan Bushnell, CEO.

Following is the full text of the letter:

February 20, 2007

Dear Shareholder,

I wanted to personally thank you for your support and give you an
assessment of the progress of uWink and our first restaurant. Today, I
am very proud to announce that we believe that uWink has delivered
strong proof of concept for the next innovation in the restaurant
industry.

Since we opened the doors to our prototype restaurant in Woodland
Hills, California on October 16, 2006, our monthly revenues have grown
steadily from $30,000 in October to $87,000 in November to $161,000 in
December to $185,000 in January '07. We expect to continue our revenue
growth as we layer in additional capacity and software designed to
create activities that will add revenue streams and fill the
restaurant during traditionally slow times.

With little promotion, we are currently serving approximately 3,000 -
3,500 guests per week in Woodland Hills, and these guests are playing
between 50,000 and 60,000 games per week on our terminals. Our
customers' level of engagement with our entertainment offerings has
far exceeded our expectations.

The uWink experience - the ambience, the food, the fun, the service -
is attracting new customers everyday. We are currently running one
hour-plus wait times on weekends. We will be adding additional inside
and outside seating in the next few weeks to meet the current and
growing crowds.

Just to note, all of this has been accomplished in LESS THAN FOUR
MONTHS, with word of mouth being our main promotion vehicle. I'm very
proud that we have been able to prove our concept, despite opening our
first restaurant in a historically difficult restaurant location, and
that we have become a destination for so many.

And, as with any innovative endeavor, we are working to improve things
in response to customer feedback. In the next few weeks we will be
making significant changes to our ordering process to give our
customers more flexibility and control over when and how their orders
are sent to the kitchen. We are also making improvements to the
checkout process and plan to make noteworthy changes to our table,
chair and terminal designs in our next location.

Over the next several weeks we plan on rolling out the next phase in
uWink game play, which will allow group competitions and tournament
play. Stay tuned! We believe this is a very important addition to the
overall uWink experience. To help build the uWink community and to
better communicate the uWink experience, we will be unveiling a
significant upgrade to our website. This new website is designed to be
flexible enough to grow along with us, and robust enough to provide
our fans, shareholders, franchisees and customers all the information,
community and resources they need.

Our food reviews from the press and customers have been excellent, a
testament to our Executive Chef Greg Schroeppel's menu and execution.
Following are quotes from some of the press food reviews:

"The food is designed to be a primary draw. The globally inspired
menu of uWink includes such appetizers as Thai-style chicken
lettuce cups, barbecued pork sliders and hummus with olive
tapanade served with fried yucca chips."
- LISA JENNINGS, NATION'S RESTAURANT NEWS

"Burger fanciers can enjoy a field day here, being able to make
their half-pounder just about any way they like it. "Build your
own" invites the alluring option. Just touch the screen and you
get what you want here. Even your horoscope."
- LARRY LIPSON, RESTAURANT REVIEWER LA DAILY NEWS

We plan on growing through a combination of company-owned and
franchised stores. We are currently in active negotiations on a number
of additional restaurant sites in the Los Angeles and greater
California areas. In addition, we are in various stages of
negotiations with a number of potential franchisees. While we cannot
guarantee that we will be able to secure additional sites or sell
franchises, we hope to have some definitive news for you in the coming
weeks and months.

Overall, I am extremely impressed with where we are to date. I'm proud
to be part of the great team that has effectively transformed this
innovative concept into a successful reality. Thank you for your
support and I look forward to a prosperous future.

Sincerely,
Nolan Bushnell
CEO
uWink, Inc.

The letter to the shareholders can also be accessed via uWink's blog: http://blog.uwink.com.

uWink, Inc. is a publicly-held digital entertainment company based in Los Angeles, California that develops interactive entertainment for restaurants, bars, and mobile devices. Led by entertainment and restaurant visionary Nolan Bushnell, founder and former CEO of Atari and Chuck E. Cheese (NYSE: CEC - News), uWink is currently building a new entertainment dining experience called uWink that leverages uWink's proprietary network and entertainment software. For more information visit: www.uwink.com.



Contact:
uWink
For general company information:
Alissa Bushnell, 415-235-9532
alissa@uwink.com
For investor relations information:
Nancy Nino
nancyn@uwink.com
or
104 West Partners PR
For media relations information:
Ashley Cox Cohen, 303-522-0783
ashley.cohen@104degreeswest.com

--------------------------------------------------------------------------------
Source: uWink, Inc.

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