MGM MIRAGE Reports Record Third Quarter Results

October 30, 2007
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported record third quarter 2007 financial results, achieving diluted earnings per share from continuing operations of $0.62, a 17% increase over the $0.53 per share earned in 2006. Earnings benefited from continued year-over-year growth in net revenues and income recognized during the quarter from Hurricane Katrina insurance recoveries.

Net revenues increased 6% to $1.9 billion, a record third quarter for the Company. The Company continues to generate significant increases in revenues from its non-gaming operations as activity at the Company's restaurants, nightclubs, and shows accelerated across the board and room rates remain strong.

  Key results from the quarter include:
  -- Hotel revenues increased 7% led by a 6% increase in Las Vegas Strip
     REVPAR(1) -- the 17th consecutive quarter of REVPAR increases at the
     Company's Las Vegas Strip resorts;
  -- Gaming revenues increased 3%, but decreased 3% excluding Beau Rivage;
     volumes were flat and the table games hold percentage, though near the
     middle of the Company's normal range, was lower than the prior year;
  -- Property EBITDA(2) of $705 million was an all-time record, representing
     a 13% increase over the prior year; excluding insurance recoveries,
     other property transactions, preopening expenses and residential sales,
     Property EBITDA was consistent with the prior-year quarter.


The following table lists significant items which affect the comparability of the current year and prior year results (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):

  Three months ended September 30,                    2007           2006
  ------------------------------------------------------------------------
  Profits from The Signature at MGM Grand            $ 0.03          $0.06
  Preopening and start-up expenses                    (0.06)         (0.01)
  Hurricane Katrina business interruption income
    (recorded as a reduction of general and
    administrative expenses)                           0.06              -
  Property transactions net:
    Hurricane Katrina property damage income           0.24              -
    Other property transactions                       (0.04)             -
  Tax adjustments                                         -           0.02


  Recent significant developments:
  -- Opened the new MGM Grand Detroit casino and hotel resort complex on
     October 2;
  -- Entered into a 50/50 joint venture agreement on August 21 with a
     subsidiary of Dubai World; the Company will contribute the CityCenter
     project, continue to develop the resort, and upon completion manage
     CityCenter for a fee; Dubai World will contribute cash, most of which
     will be immediately distributed to the Company;
  -- Completed the sale of 14.2 million shares of common stock at $84 per
     share to a subsidiary of Dubai World on October 18, for proceeds of
     approximately $1.2 billion;
  -- Signed a definitive agreement with Kerzner International and a
     subsidiary of Dubai World, forming the joint venture which will develop
     a multi-billion dollar integrated resort property on the Las Vegas
     Strip;
  -- Announced plans for MGM Grand Atlantic City, a $4.5-$5.0 billion
     destination casino resort, which will be located on the Company's
     72-acre site at Renaissance Pointe.


"Our growth initiatives, including strategic relationships with Dubai World and Kerzner International, reflect our ability to leverage our tremendous assets and creative energy to grow the Company," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "Our all-new MGM Grand Detroit is the clear market leader right out of the gate. We are well underway in creating the most important Las Vegas development ever, CityCenter, and we believe our MGM Grand Atlantic City project will have a similarly profound impact on the Atlantic City market."

                 Detailed Discussion of Operating Results
                -----------------------------------------

Net revenues increased 6% for the quarter; excluding Beau Rivage, net revenues were up 2%. Gaming revenues increased 3%, but decreased 3% excluding Beau Rivage. Several Las Vegas Strip resorts posted solid increases in slot revenues over the prior year, including Bellagio, MGM Grand, and Mirage -- each up 8% -- and Mandalay Bay -- up 9%. Overall, slot revenues at the Company's Las Vegas resorts were up 2%. Slot revenues at MGM Grand Detroit's interim facility fell 8%, partially due to the winding down of operations at the interim facility in preparation for the new resort. Table games revenues decreased 5% excluding Beau Rivage. Table games volume, excluding Beau Rivage, was consistent with the prior year period. The overall table games hold percentage was near the middle of the normal 18-22% range in the 2007 period, though lower than 2006.

Rooms revenues increased 7% despite having 29,000 less available rooms on the Las Vegas Strip due primarily to room and suite remodel activity at Mandalay Bay and Bellagio. Average room rates increased 5% at the Company's Las Vegas Strip resorts and occupancy remained solid. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

                                                   Three Months Ended
                                              ------------------------------
                                               September 30,  September 30,
                                                    2007           2006
                                              ------------------------------
  Occupancy %                                        97%            96%
  Average Daily Rate (ADR)                          $147           $140
  Revenue per Available Room (REVPAR)               $143           $135


Food and beverage revenues increased 10% as the Company's restaurants and nightclubs continue to experience increased volumes and the Company continues to invest in new restaurants and nightclubs. For example, on August 31 Luxor opened LAX, the latest addition to the Company's exciting nightlife amenities as part of the repositioning of the resort, which will include additional new entertainment and dining offerings opening in 2007 and 2008. Entertainment revenues increased 13% driven by strong demand across the Company's portfolio of Cirque du Soleil productions.

Beau Rivage was open for a full quarter in 2007 versus 33 days in 2006. Beau Rivage earned operating income of $145 million in the third quarter of 2007 with depreciation and amortization of $12 million for Property EBITDA of $157 million. In the third quarter of 2007, Beau Rivage's operating income and Property EBITDA includes $135 million of insurance recoveries, $107 million of which was recorded as property transactions and $28 million of which was recorded as a reduction in general and administrative expenses. Beau Rivage's third quarter 2007 Property EBITDA before insurance recoveries was $22 million. In the third quarter of 2006, Beau Rivage earned operating income of $10 million with depreciation and amortization of $5 million for Property EBITDA of $15 million.

Corporate expense of $63 million in the third quarter includes $18 million related to severance costs, Atlantic City and Macau development initiatives, and the CityCenter transaction.

The Company's operating income increased 11% to $465 million. Operating income was positively impacted by a full quarter of operations at Beau Rivage, including the insurance recoveries discussed earlier, and negatively impacted by lower profits from condominium sales at the Signature at MGM Grand -- $12 million in the 2007 quarter versus $26 million in 2006. In addition, operating income was negatively impacted by higher write-offs, demolition costs and preopening expense -- $44 million in the current quarter versus $6 million in 2006. Excluding results at Beau Rivage and the other items above, operating income decreased 10%, due in large part to higher corporate expense. Property EBITDA increased 13% to $705 million; excluding the impact of the above items, Property EBITDA and the Property EBITDA margin were consistent with 2006 results.

"Key volume indicators that we have come to rely on to gauge our Las Vegas business remain strong. These metrics suggest continued growth over the upcoming quarters," said Jim Murren, MGM MIRAGE President and Chief Operating Officer. "We have many opportunities to increase our future profits through initiatives deployed throughout the remainder of this year and into 2008. The opening of our Detroit resort has been a tremendous success and we are only a couple of months away from opening in Macau. Both of these resorts will substantially add to our future cash flows and earnings."

                  Detailed Discussion of Certain Charges
                 ---------------------------------------

In addition to the income from Hurricane Katrina insurance recoveries of $107 million included in property transactions, the Company recognized $12 million of write-offs primarily related to discontinued construction projects at its Las Vegas resorts and $5 million in demolition costs related to ongoing capital projects. In the 2006 period, the Company had minimal property transactions.

Preopening and start-up expenses of $26 million in the 2007 quarter included $14 million related to MGM Grand Detroit. Ongoing preopening and start-up expenses were also incurred at CityCenter and MGM Grand Macau.

                            Financial Position
                           -------------------

Third quarter capital investments totaled $767 million, which included $451 million for CityCenter and $140 million for the permanent MGM Grand Detroit resort. Remaining capital expenditures included spending of $61 million on room and suite remodel projects, primarily at Mandalay Bay and Bellagio, expenditures for corporate aircraft of $13 million, and $102 million of other routine capital expenditures on various new and upgraded amenities at the Company's resorts.

During the quarter, the Company received an additional $92 million of insurance recoveries related to Hurricane Katrina, bringing cumulative proceeds through September 30, 2007 to $522 million, of which $53 million was deferred. In October, the Company reached final settlements with its remaining carriers and expects to receive an additional $113 million, bringing final insurance proceeds to $635 million.

The proceeds of $1.2 billion from the sale of common stock in October to a subsidiary of Dubai World were used to reduce outstanding borrowings under the Company's senior credit facility. Following these payments, the Company had

approximately $2.0 billion of available borrowings under its senior credit facility.

"Our recent strategic transactions will have a profound impact on our financial position and allow us to execute our many growth initiatives," said Dan D'Arrigo, MGM MIRAGE Executive Vice President and Chief Financial Officer. "Following the transactions with Dubai World, we will have significant borrowing capacity under our senior credit facility and no significant debt maturities in 2008."

                            Development Update
                           -------------------

As discussed earlier, the permanent MGM Grand Detroit opened on October 2 at estimated final costs consistent with previous estimates. In Macau, the updated total project budget is $1.25 billion, up from the previous estimate of $1.1 billion. At CityCenter, the construction budget has increased from $7.4 billion to $7.8 billion. The current budget for preopening expenses is $200 million, consistent with previous estimates.

MGM MIRAGE will hold a conference call to discuss its third quarter earnings results and outlook for the fourth quarter at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at http://www.companyboardroom.com/ or http://www.mgmmirage.com/, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until Tuesday, November 6, 2007, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 21241421. A complete replay of the call will also be made available at http://www.mgmmirage.com/. Supplemental detailed earnings information will also be available on the Company's website.

(1) REVPAR is hotel Revenue per Available Room.

(2) "EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization. "Property EBITDA" is EBITDA before corporate expense and stock compensation expense. EBITDA information is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Management uses Property EBITDA as the primary measure of the Company's operating resorts' performance, including the evaluation of operating personnel. EBITDA should not be construed as an alternative to operating income, as an indicator of the Company's operating performance; or as an alternative to cash flows from operating activities, as a measure of liquidity; or as any other measure determined in accordance with generally accepted accounting principles. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in EBITDA. Also, other gaming companies that report EBITDA information may calculate EBITDA in a different manner than the Company. Reconciliations of consolidated EBITDA to net income and of operating income to Property EBITDA are included in the financial schedules accompanying this release.

MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE is the largest landholder on the Las Vegas Strip, with significant undeveloped landholdings in both Las Vegas and Atlantic City. The Company recently opened MGM Grand Detroit, a major new resort; and will open another, MGM Grand Macau, before the end of the year. Also under development is CityCenter, a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip. The Company has entered into an agreement with a subsidiary of Dubai World whereby MGM MIRAGE will contribute the CityCenter assets into a newly formed joint venture equally owned by the parties valued at $5.4 billion. MGM MIRAGE has signed a definitive agreement with Kerzner International Holdings Limited and Istithmar Hotels FZE to develop a new multi-billion dollar integrated resort property on the Las Vegas Strip. The Company has a separate definitive agreement with the Diaoyutai State Guesthouse in Beijing forming a strategic relationship to pursue non-gaming business opportunities in the People's Republic of China. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received 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.

                       MGM MIRAGE AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                               (Unaudited)

                         Three Months Ended          Nine Months Ended
                     --------------------------  --------------------------
                     September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                     --------------------------  --------------------------
  Revenues:
    Casino            $  803,834    $  782,047    $2,389,704    $2,296,999
    Rooms                510,795       479,107     1,614,906     1,498,366
    Food and beverage    406,620       369,383     1,248,786     1,108,161
    Entertainment        141,093       125,290       418,578       329,123
    Retail                75,608        73,027       222,930       207,535
    Other                132,061       118,765       388,891       335,651
                      -----------   -----------   -----------   -----------
                       2,070,011     1,947,619     6,283,795     5,775,835
    Less: Promotional
     allowances         (172,941)     (152,577)     (520,874)     (445,917)
                      -----------   -----------   -----------   -----------
                       1,897,070     1,795,042     5,762,921     5,329,918
                      -----------   -----------   -----------   -----------
  Expenses:
    Casino               412,165       395,253     1,240,441     1,187,794
    Rooms                142,722       136,118       428,476       404,032
    Food and beverage    242,034       228,799       736,115       667,418
    Entertainment        101,164        91,056       303,558       240,052
    Retail                47,917        46,359       141,807       135,941
    Other                 83,812        67,818       232,578       181,213
    General and
     administrative      286,447       278,551       873,739       785,350
    Corporate expense     63,050        35,184       140,673       110,415
    Preopening and
     start-up expenses    25,851         6,083        54,275        27,308
    Restructuring costs       --            --            --         1,035
    Property
     transactions, net   (89,225)          282       (81,799)       36,455
    Depreciation and
     amortization        170,780       156,280       506,566       461,506
                      -----------   -----------   -----------   -----------
                       1,486,717     1,441,783     4,576,429     4,238,519
                      -----------   -----------   -----------   -----------
  Income from
   unconsolidated
   affiliates             54,260        66,138       192,227       158,773
                      -----------   -----------   -----------   -----------
  Operating income       464,613       419,397     1,378,719     1,250,172
                      -----------   -----------   -----------   -----------
  Non-operating income
   (expense):
    Interest income        4,770         2,650        12,936         8,422
    Interest expense,
     net                (180,033)     (189,368)     (547,473)     (572,993)
    Non-operating
     items from
     unconsolidated
     affiliates           (4,599)       (4,627)      (14,419)      (11,563)
    Other, net            (1,152)       (1,659)       (4,684)       (6,877)
                      -----------   -----------   -----------   -----------
                        (181,014)     (193,004)     (553,640)     (583,011)
                      -----------   -----------   -----------   -----------
  Income from
   continuing
   operations before
   income taxes          283,599       226,393       825,079       667,161
    Provision for
     income taxes        (99,736)      (72,628)     (295,308)     (230,293)
                      -----------   -----------   -----------   -----------
  Income from
   continuing
   operations            183,863       153,765       529,771       436,868
                      -----------   -----------   -----------   -----------
  Discontinued
   operations:
    Income from
     discontinued
     operations               --         3,744        10,461        14,815
    Gain on disposal
     of discontinued
     operations               --            --       263,881            --
    Provision for
     income taxes             --        (1,247)      (91,905)       (4,990)
                      -----------   -----------   -----------   -----------
                              --         2,497       182,437         9,825
                      -----------   -----------   -----------   -----------
  Net income          $  183,863    $  156,262    $  712,208    $  446,693
                      ===========   ===========   ===========   ===========
  Per share of common
   stock:
    Basic:
    Income from
     continuing
     operations       $     0.65    $     0.55    $     1.86    $     1.54
    Discontinued
     operations               --            --          0.65          0.04
                      -----------   -----------   -----------   -----------
    Net income per
     share            $     0.65    $     0.55    $     2.51    $     1.58
                      ===========   ===========   ===========   ===========
    Weighted average
     shares
     outstanding         284,730       281,836       284,201       283,423
                      ===========   ===========   ===========   ===========
    Diluted:
    Income from
     continuing
     operations       $     0.62    $     0.53    $     1.79    $     1.50
    Discontinued
     operations               --          0.01          0.62          0.03
                      -----------   -----------   -----------   -----------
    Net income per
     share            $     0.62    $     0.54    $     2.41    $     1.53
                      ===========   ===========   ===========   ===========
    Weighted average
     shares
     outstanding         296,248       289,258       295,687       291,744
                      ===========   ===========   ===========   ===========



                         MGM MIRAGE AND SUBSIDIARIES
                       SUPPLEMENTAL DATA - NET REVENUES
                                (In thousands)
                                 (Unaudited)

                         Three Months Ended          Nine Months Ended
                     --------------------------  --------------------------
                     September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                     ------------  ------------  ------------  ------------
    Las Vegas Strip   $1,598,237    $1,543,101    $4,865,228    $4,671,092
    Other Nevada          46,177        52,812       137,667       151,261
    MGM Grand Detroit    110,445       116,141       337,049       345,142
    Mississippi          142,211        82,988       422,977       162,423
                     ------------  ------------  ------------  ------------
                      $1,897,070    $1,795,042    $5,762,921    $5,329,918
                     ============  ============  ============  ============



                       MGM MIRAGE AND SUBSIDIARIES
                   SUPPLEMENTAL DATA - PROPERTY EBITDA
                              (In thousands)
                               (Unaudited)

                         Three Months Ended          Nine Months Ended
                     --------------------------  --------------------------
                     September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                     ------------  ------------  ------------  ------------
  Las Vegas Strip     $  469,598    $  486,621    $1,549,664    $1,528,117
    Other Nevada           5,808         6,185         9,892        18,827
    MGM Grand Detroit     17,305        38,421        80,247       114,020
    Mississippi          164,285        25,011       227,595        42,401
    Unconsolidated
     resorts              47,746        64,814       178,840       154,154
                     ------------  ------------  ------------  ------------
                      $  704,742    $  621,052    $2,046,238    $1,857,519
                     ============  ============  ============  ============



                         MGM MIRAGE AND SUBSIDIARIES
        DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA
                                (In thousands)
                                 (Unaudited)

                      Three Months Ended September 30, 2007
                      -------------------------------------
                         Preopening                    Property
                        and start-up  Restructuring  transactions,
                          expenses        costs          net         Total
                      --------------  -------------  ------------  ---------
     Las Vegas Strip  $      5,642    $       --     $   17,735    $ 23,377
     Other Nevada               --            --             20          20
     MGM Grand Detroit      13,554            --             --      13,554
     Mississippi                --            --       (107,035)   (107,035)
     Unconsolidated
      resorts                6,514            --             --       6,514
                      --------------  --------------  -----------  ---------
                            25,710            --        (89,280)    (63,570)
     Corporate and
      other                    141            --             55         196
                      --------------  --------------  -----------  ---------
                      $     25,851    $       --      $ (89,225)   $(63,374)
                      ==============  ==============  ===========  =========


                      Three Months Ended September 30, 2006
                      -------------------------------------
                         Preopening                    Property
                        and start-up  Restructuring  transactions,
                          expenses        costs          net         Total
                      --------------  --------------  -----------  ---------
     Las Vegas Strip  $      3,998    $       --      $      69    $  4,067
     Other Nevada               --            --            (21)        (21)
     MGM Grand Detroit         647            --             --         647
     Mississippi                --            --            167         167
     Unconsolidated
      resorts                1,324            --             --       1,324
                      --------------  --------------  -----------  ---------
                             5,969            --            215       6,184
     Corporate and
      other                    114            --             67         181
                      --------------  --------------  -----------  ---------
                      $      6,083    $       --      $     282    $  6,365
                      ==============  ==============  ===========  =========



                         MGM MIRAGE AND SUBSIDIARIES
  DETAIL OF CERTAIN CHARGES AFFECTING PROPERTY EBITDA and EBITDA (continued)
                                (In thousands)
                                 (Unaudited)

                      Nine Months Ended September 30, 2007
                      ------------------------------------
                         Preopening                    Property
                        and start-up  Restructuring  transactions,
                          expenses        costs          net         Total
                      --------------  --------------  -----------  ---------
     Las Vegas Strip  $     21,245    $       --      $  20,600    $ 41,845
     Other Nevada               --            --          4,630       4,630
     MGM Grand Detroit      19,138            --             --      19,138
     Mississippi                --            --       (106,434)   (106,434)
     Unconsolidated
      resorts               13,387            --             --      13,387
                      --------------  --------------  -----------  ---------
                            53,770            --        (81,204)    (27,434)
     Corporate and
      other                    505            --           (595)        (90)
                      --------------  --------------  -----------  ---------
                      $     54,275    $       --      $ (81,799)   $(27,524)
                      ==============  ==============  ===========  =========


                      Nine Months Ended September 30, 2006
                      ------------------------------------
                         Preopening                    Property
                        and start-up  Restructuring  transactions,
                          expenses        costs          net         Total
                      --------------  --------------  -----------  ---------
     Las Vegas Strip  $     19,024    $     1,035     $  32,635    $ 52,694
     Other Nevada               --             --           (42)        (42)
     MGM Grand Detroit       1,924             --             1       1,925
     Mississippi                --             --           177         177
     Unconsolidated
      resorts                5,969             --            --       5,969
                      --------------  --------------  -----------  ---------
                            26,917          1,035        32,771      60,723
     Corporate and
      other                    391             --         3,684       4,075
                      --------------  --------------  -----------  ---------
                      $     27,308    $     1,035     $  36,455    $ 64,798
                      ==============  ==============  ===========  =========



                         MGM MIRAGE AND SUBSIDIARIES
       RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING
                                 OPERATIONS
                               (In thousands)
                                 (Unaudited)

                         Three Months Ended          Nine Months Ended
                        --------------------        -------------------
                     September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                     ------------  ------------  ------------  ------------
  EBITDA              $  635,393    $  575,677    $1,885,285    $1,711,678
    Depreciation and
     amortization       (170,780)     (156,280)     (506,566)     (461,506)
                     ------------  ------------  ------------  ------------
  Operating income       464,613       419,397     1,378,719     1,250,172
                     ------------  ------------  ------------  ------------
  Non-operating income
   (expense):
    Interest expense,
     net                (180,033)     (189,368)     (547,473)     (572,993)
    Other                   (981)       (3,636)       (6,167)      (10,018)
                     ------------  ------------  ------------  ------------
                        (181,014)     (193,004)     (553,640)     (583,011)
                     ------------  ------------  ------------  ------------
  Income from
   continuing
   operations before
   income taxes          283,599       226,393       825,079       667,161
     Provision for
      income taxes       (99,736)      (72,628)     (295,308)     (230,293)
                     ------------  ------------  ------------  ------------
  Income from
   continuing
   operations         $  183,863    $  153,765    $  529,771    $  436,868
                     ============  ============  ============  ============



                         MGM MIRAGE AND SUBSIDIARIES
            RECONCILIATION OF OPERATING INCOME TO PROPERTY EBITDA
                               (In thousands)
                                 (Unaudited)

                     Three Months Ended September 30, 2007
                     -------------------------------------
                                                  Depreciation
                                      Operating       and
                                       income     amortization    EBITDA
                                    ------------  ------------  -----------
    Las Vegas Strip                 $  334,218    $  135,380    $  469,598
    Other Nevada                         4,304         1,504         5,808
    MGM Grand Detroit                   11,343         5,962        17,305
    Mississippi                        148,974        15,311       164,285
    Unconsolidated resorts              47,746            --        47,746
                                    ------------  ------------  -----------
                                       546,585       158,157       704,742
    Stock compensation                                             (10,710)
    Corporate and other                                            (58,639)
                                                                -----------
                                                                $  635,393
                                                                ===========

                     Three Months Ended September 30, 2006
                     -------------------------------------
                                                  Depreciation
                                      Operating       and
                                       income     amortization    EBITDA
                                    -----------   ------------  -----------
    Las Vegas Strip                 $  355,282    $  131,339    $  486,621
    Other Nevada                         3,963         2,222         6,185
    MGM Grand Detroit                   33,865         4,556        38,421
    Mississippi                         16,353         8,658        25,011
    Unconsolidated resorts              64,814            --        64,814
                                    -----------   ------------  -----------
                                       474,277       146,775       621,052
    Stock compensation                                             (17,125)
    Corporate and other                                            (28,250)
                                                                -----------
                                                                $  575,677
                                                                ===========

                     Nine Months Ended September 30, 2007
                     ------------------------------------
                                                  Depreciation
                                      Operating       and
                                       income     amortization    EBITDA
                                    -----------   ------------  -----------
    Las Vegas Strip                 $1,146,894    $  402,770    $1,549,664
    Other Nevada                         4,923         4,969         9,892
    MGM Grand Detroit                   62,411        17,836        80,247
    Mississippi                        181,992        45,603       227,595
    Unconsolidated resorts             178,840            --       178,840
                                    -----------   ------------  -----------
                                     1,575,060       471,178     2,046,238
    Stock compensation                                             (35,350)
    Corporate and other                                           (125,603)
                                                                -----------
                                                                $1,885,285
                                                                ===========

                     Nine Months Ended September 30, 2006
                    --------------------------------------
                                                  Depreciation
                                      Operating       and
                                       income     amortization    EBITDA
                                    -----------   ------------  -----------
    Las Vegas Strip                 $1,131,278    $  396,839    $1,528,117
    Other Nevada                        11,824         7,003        18,827
    MGM Grand Detroit                  103,310        10,710       114,020
    Mississippi                         22,746        19,655        42,401
    Unconsolidated resorts             154,154            --       154,154
                                    -----------   -----------   -----------
                                     1,423,312       434,207     1,857,519
    Stock compensation                                             (54,056)
    Corporate and other                                            (91,785)
                                                                -----------
                                                                $1,711,678
                                                                ===========



                         MGM MIRAGE AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                      (In thousands, except share data)
                                 (Unaudited)

                                             September 30,      December 31,
                                                 2007               2006
                                             ------------       ------------
                             ASSETS
  Current assets:
      Cash and cash equivalents              $   311,605        $   452,944
      Accounts receivable, net                   378,697            362,921
      Inventories                                124,562            118,459
      Income tax receivable                       50,652             18,619
      Deferred income taxes                       65,105             68,046
      Prepaid expenses and other                 148,801            124,414
      Assets held for sale                        55,077            369,348
                                             ------------       ------------
            Total current assets               1,134,499          1,514,751
                                             ------------       ------------

  Real estate under development                  478,318            188,433

  Property and equipment, net                 19,302,533         17,241,860

  Other assets:
      Investments in unconsolidated
       affiliates                              1,107,179          1,092,257
      Goodwill                                 1,269,591          1,300,747
      Other intangible assets, net               360,553            367,200
      Deposits and other assets, net             654,538            440,990
                                             ------------       ------------
            Total other assets                 3,391,861          3,201,194
                                             ------------       ------------
                                             $24,307,211        $22,146,238
                                             ============       ============

                   LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                       $   186,870        $   182,154
      Construction payable                       371,293            234,486
      Accrued interest on long-term debt         179,724            232,957
      Other accrued liabilities                  964,462            958,244
      Liabilities related to assets held
       for sale                                    3,396             40,259
                                             ------------        -----------
            Total current liabilities          1,705,745          1,648,100
                                             ------------        -----------
  Deferred income taxes                        3,373,770          3,441,157
  Long-term debt                              14,131,377         12,994,869
  Other long-term obligations                    514,567            212,563
  Stockholders' equity:
      Common stock, $.01 par value: authorized
       600,000,000 shares, issued 367,114,815
       and 362,886,027 shares and outstanding
       285,637,788 and 283,909,000 shares          3,671              3,629
      Capital in excess of par value           3,000,476          2,806,636
      Treasury stock, at cost: 81,477,027
       and 78,977,027 shares                  (1,771,707)        (1,597,120)
      Retained earnings                        3,348,197          2,635,989
      Accumulated other comprehensive
       income                                      1,115                415
                                             ------------       ------------
            Total stockholders' equity         4,581,752          3,849,549
                                             ------------       ------------
                                             $24,307,211        $22,146,238
                                             ============       ============

First Call Analyst:
FCMN Contact:

SOURCE: MGM Mirage

CONTACT: investors, Daniel J. D'Arrigo, Executive Vice President, Chief
Financial Officer, +1-702-693-8895, or media, Alan M. Feldman, Senior Vice
President, Public Affairs, +1-702-891-7147, both of MGM Mirage

Web site: http://www.mgmmirage.com/
http://www.companyboardroom.com/