MGM MIRAGE (NYSE: MGM) announced today that it is in advanced discussions with the Diaoyutai State Guesthouse in Beijing, People's Republic of China aimed at creating a strategic relationship to pursue non-gaming business opportunities.
The parties intend to create a joint venture to develop luxury non-gaming hotels and resorts globally, initially targeting locations in the People's Republic of China.
The expectation is that the joint venture will develop its own distinctive brand identity, associating "MGM Grand" with "Diaoyutai" to create unique luxury hotel resorts and related facilities. The parties hope to conclude a definitive joint venture agreement in the first quarter of 2007.
Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE, said: "We are honored to be working with the Diaoyutai State Guesthouse, an institution which has a unique role in the People's Republic of China. The "Diaoyutai" brand is world-renowned. We believe that the association of "MGM Grand" and "Diaoyutai" will provide significant opportunities to build on the strengths of our two organizations and to expand our brand identity in rapidly growing international markets."
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected hotel and gaming companies, owns and operates 23 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. The Company has entered into agreements to sell its three Primm Valley Resort properties located in Primm, Nevada and its Colorado Belle and Edgewater properties located in Laughlin, Nevada. In addition, the Company has major new developments under construction in Nevada, Michigan and Macau S.A.R. CityCenter is a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip; a new MGM Grand hotel and casino complex is being built in downtown Detroit; and the Company has a 50% interest in MGM Grand Macau, a hotel-casino resort currently under construction in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com/. Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.
First Call Analyst:
FCMN Contact: gabsher@mgmmirage.com
SOURCE: MGM MIRAGE
CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer & Treasurer, +1-702-693-8877, or Media, Alan M. Feldman,
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Web site: http://www.mgmmirage.com/