MGM MIRAGE Reports Record Fourth Quarter Revenue, Cash Flow, and Net Income

February 01, 2001
PRNewswire
LAS VEGAS

MGM MIRAGE (NYSE: MGG) today reported earnings of 42 cents per diluted share for the three months ended December 31, 2000, compared with 34 cents per diluted share in the 1999 fourth quarter. Excluding preopening expenses, the company reported a 19% increase in earnings per share to 43 cents per share for the 2000 fourth quarter, up from 36 cents per share in the prior year's quarter. For the twelve months ended December 31, 2000, earnings per share rose 51% to $1.09 from 72 cents in 1999. Earnings per share during 2000, excluding non-recurring items, increased 44% to $1.70 from $1.18 in the prior year.

Net income before preopening expenses increased 66% to $69.2 million in the 2000 quarter from $41.7 million in the prior year's quarter. These results reflect the continued strong performance from the company's casino and hotel operations and the impact of the historic acquisition of Mirage Resorts, Incorporated ("Mirage Resorts") on May 31, 2000. Revenue and operating cash flow ("EBITDA") soared 155% and 150%, respectively, representing the eighth consecutive quarterly increase in revenue and EBITDA on a year-over-year basis.

On a pro forma basis to account for the Mirage Resorts acquisition in both periods, revenue grew 2% to $1.1 billion while EBITDA rose 10% to $316.9 million in the 2000 quarter. For the twelve months ended December 31, 2000, pro forma same-store net revenue increased 4% while same-store EBITDA grew an impressive 14%.

"We knew when we combined these two companies we had assembled an unmatched portfolio of properties," said Terry Lanni, Chairman of MGM MIRAGE. "Our challenge was to leverage these resorts to achieve the type of returns that would drive shareholder value. Our fourth quarter results were particularly strong and we are off to a good start in the current quarter as well."

                    Fourth Quarter Company Highlights

  -- Net revenue soared 155% to $1.1 billion
  -- Earnings rose 19% to 43 cents per diluted share before preopening
     expenses
  -- EBITDA grew 150% to $316.9 million
  -- Produced significant free cash flow at all operating properties
  -- Operated the three most profitable resorts in the state of Nevada
  -- Sold approximately $69.2 million in non-strategic assets bringing the
     total assets sold in 2000 to approximately $229 million
  -- Reduced debt by $168 million, resulting in total debt reduction during
     2000 of $529 million since the acquisition of Mirage Resorts
  -- Achieved cost savings ahead of targeted results
  -- Completed $630 million in financing for the development and
     construction of the Borgata resort in Atlantic City, a joint venture
     with Boyd Gaming

                      Company-Wide Operating Results

The company's consolidated net revenue of $1.1 billion for the three months ended December 31, 2000 increased 155% from the prior year's quarter of $421 million. Net revenue benefited from the acquisition of Mirage Resorts, which contributed $645.7 million in net revenue during the 2000 fourth quarter, and was aided by a 7% increase in net revenue from MGM Grand Las Vegas. EBITDA soared 150% to $316.9 million from $127 million in the 1999 quarter. This increase reflects a full quarter contribution from Mirage Resorts and the strong operating performance at all of the company's properties. The company's 30% overall EBITDA margin remained consistent with the prior year's quarter.

For the twelve months ended December 31, 2000, the company reported net revenue of $3.2 billion, up 132% from the prior year of $1.4 billion. EBITDA during 2000 increased 136% to $996.2 million from $421.7 million in 1999.

"In the face of ever-increasing competition in all sectors of our business, each of our properties reported strong performance and meaningful gains over last year," said Jim Murren, President and CFO of MGM MIRAGE. "As we look to the future, we continue to find operating efficiencies and marketing strength from our collection of brands and we are strategically the best positioned company in the industry. We have dramatically strengthened our balance sheet since the acquisition, while our attention to margins has resulted in superior returns and free cash flow."

Bellagio

Bellagio net revenue of $261.9 million for the three months ended December 31, 2000 was the second highest quarterly total in the resort's history, trailing only the $275.1 million achieved in the fourth quarter of 1999. Despite the year-over-year revenue decline, ongoing expense reduction efforts led to record-high EBITDA of $88.1 million in the 2000 fourth quarter when compared with $87.3 million in the 1999 quarter. The quarterly EBITDA margin of 34% was also a record for this two-year-old resort. Particularly noteworthy was the continuing strength in room revenues. Average daily room rate ("ADR") increased by 9% to $179 versus the $164 achieved in the fourth quarter of 1999, while revenue per available room ("REVPAR") increased by 8% to $170. Bellagio was the most profitable resort in Nevada in 2000, as it achieved EBITDA of $294.6 million, or 13% above the $260.2 million reported in 1999. The EBITDA margin during 2000 increased to 30% from 26% in 1999.

MGM Grand Las Vegas - The City of Entertainment

MGM Grand Las Vegas - The City of Entertainment produced 7% growth in both net revenue and EBITDA for the three months ended December 31, 2000. Net revenue and EBITDA during the 2000 fourth quarter was $216.6 million and $54 million, respectively when compared with $203 million and $50.3 million in the 1999 period. The growth in both net revenue and EBITDA was attributable to a 7% increase in casino revenue and a 3% increase in non-casino revenue. Casino revenue benefited from all-time record highs in table game (excluding baccarat) and slot volumes during the fourth quarter. Non-casino revenue benefited from an all-time record high in room revenue and a 20% increase in food and beverage revenue. Room revenue rose in the 2000 fourth quarter as a result of increases in room occupancy to 92.1% from 89.1% and ADR increased to $115 from $111 in the 1999 fourth quarter. These gains resulted in a $7 increase in REVPAR to $106 during the 2000 period. For the twelve months ended December 31, 2000, this property recorded the highest net revenue in its history of $830.9 million, up 5% from $790.1 million in 1999 and its third highest annual EBITDA of $221.4 million, a 14% increase over the $193.8 million achieved in 1999.

The Mirage

The Mirage achieved striking increases in net revenue, EBITDA and EBITDA margin versus the fourth quarter of 1999. Net revenue increased by 17% to $157.8 million, while EBITDA increased by 58% to $41.3 million. EBITDA margin was 26% versus the 19% recorded in the 1999 fourth quarter. The increase in revenue was broad-based, with nearly every major category showing significant growth over the prior year. Room revenue during the 2000 quarter continued to benefit from increases in occupancy, up 2% to 95.6%, higher ADR of $123 versus $119, and a 4% increase in REVPAR to $117. Entertainment revenue was particularly strong. The continued success of Danny Gans, who has played to sold-out audiences since his April debut at The Mirage, and Siegfried and Roy, with additional performances at an increased occupancy percentage, led to a $9.2 million increase in entertainment revenue. For the full year, The Mirage achieved EBITDA of $173.1 million, an increase of 27% over the $136 million recorded in 1999, while margins improved to 27% from 24% in 2000.

Treasure Island

Treasure Island performed well during the quarter, as a strong increase in non-casino revenue along with a 3% decline in operating expenses allowed the resort to achieve a small increase in EBITDA, to $26.8 million versus the fourth quarter of 1999, despite a decline in casino revenue. The decline in casino revenue was attributable primarily to minor decreases in table game volume and hold percentage. The increase in non-casino revenue was concentrated in room and entertainment revenues. Room revenue benefited from a 10% increase in ADR, while the increase in entertainment revenue reflected an increase in ticket pricing, as well as a December 2000 increase in showroom capacity. Treasure Island achieved EBITDA of $110.2 million for all of 2000, a 21% increase over the $91 million reported in 1999. During 2000, Treasure Island's EBITDA margin was 29%, up from the 26% recorded in 1999.

New York - New York

New York - New York recorded net revenue of $53.6 million during the fourth quarter, up 5% from $51 million in the prior year's quarter. EBITDA for the three months ended December 31, 2000 was $22.6 million, also up 5% when compared with $21.5 million in 1999. EBITDA margin remained an impressive 42% during the 2000 period. The increase in net revenue was a result of a 3% increase in casino revenue and a 7% increase in non-casino revenue. Non-casino revenue benefited from higher room revenue due to an increase in room occupancy from 87.2% to 94.2% and higher REVPAR from $80 to $84 during the 2000 fourth quarter. For the twelve months ended December 31, 2000, net revenue, EBITDA, and EBITDA margin were $219.4 million, $96.4 million, and 44%, respectively.

Primm Properties

The Primm Properties (Whiskey Pete's, Buffalo Bill's and the Primm Valley Resort located in Primm, Nevada and two championship golf courses at the California/Nevada Stateline) produced net revenue for the 2000 fourth quarter of $53.1 million and EBITDA of $14.6 million, representing a 28% EBITDA margin. This compares with net revenue of $54.4 million and EBITDA of $16.4 million during the 1999 fourth quarter. Higher gasoline prices and increased competition from Native American casinos in California have negatively impacted traffic counts to these resorts.

Golden Nugget Properties

The Golden Nugget in downtown Las Vegas produced net revenue of $45.5 million and EBITDA of $8.1 million during the fourth quarter of 2000, representing declines of $0.8 million and $1.1 million, respectively, versus the amounts achieved in the 1999 fourth quarter. These declines are attributable primarily to a decline in the table game hold percentage while table game volume essentially was flat and slot volume rose 2%. Hotel occupancy increased from 92.9% to 95.5% quarter-over-quarter. EBITDA at the Golden Nugget Laughlin fell to $0.6 million from the $1.4 million reported in the 1999 fourth quarter. Full year EBITDA for the Golden Nugget and Golden Nugget Laughlin were essentially unchanged from the prior year, at $35.1 million and $5.8 million, respectively.

MGM Grand Detroit

Despite the inclement weather and increased competition, MGM Grand Detroit produced net revenue of $93.7 million and EBITDA of $34.1 million for the three months ended December 31, 2000 when compared with net revenue and EBITDA of $100.9 million and $33.4 million, respectively, for the 1999 fourth quarter. EBITDA margins increased from 33% in the 1999 period to 36% during the 2000 quarter as management continues to focus on maximizing MGM Grand Detroit's profitability and market share leadership. For the twelve months ended December 31, 2000, MGM Grand Detroit recorded net revenue of $402.7 million and EBITDA of $156.7 million.

Beau Rivage

Beau Rivage performed well during the fourth quarter of 2000, generating EBITDA of $11.5 million versus $4.6 million (excluding a one-time insurance claim) in the prior-year quarter. Net revenue grew only slightly, as strong increases in table game, slot and food and beverage revenue were largely offset by a decline in entertainment revenue. The Cirque du Soleil show, Alegria, ended its sixteen-month run at Beau Rivage in October 2000, resulting in the significant quarter-over-quarter decline in entertainment revenue, as well as a corresponding decline in entertainment expenses. Significant decreases in several expense categories allowed the resort to more than double its EBITDA margin versus the fourth quarter of 1999.

Monte Carlo

Monte Carlo reported net revenue of $69.4 million and EBITDA of $24.1 million compared with $63.9 million and $21.3 million, respectively, for the fourth quarter of 1999. The company's 50% share of this joint venture's results contributed $10.3 million to operating income for the three months ended December 31, 2000.

MGM Grand Australia

MGM Grand Australia reported net revenue of $8.6 million and EBITDA of $4.2 million in the 2000 fourth quarter compared with net revenue of $10.3 million and EBITDA of $4.2 million in the 1999 period. MGM Grand Australia's EBITDA margin grew from 41% in the 1999 period to an impressive 49% in the 2000 quarter. The decrease in net revenue and the flat EBITDA quarter-over-quarter is due to a lower currency exchange rate. MGM Grand Australia's actual EBITDA in Australian dollars increased by 22% during the 2000 period, while net revenue remained flat. For the twelve months ended December 31, 2000, MGM Grand Australia produced net revenue of $36.6 million, EBITDA of $15.5 million, and an EBITDA margin of 42%.

Recent Developments

On January 17, 2001, the company announced that it completed a review of various development opportunities resulting from its recent acquisition of Mirage Resorts. As a result, MGM MIRAGE determined to begin the design phase for a world class resort in Atlantic City on land it owns immediately adjacent to Borgata, its joint venture with Boyd Gaming. MGM MIRAGE also announced that it is suspending the capitalization of interest associated with the 55 acre site in Las Vegas adjacent to Bellagio and will expense such interest until the development process for the Las Vegas site is further advanced. The company indicated that this action will have no impact on EBITDA but will reduce net earnings by $.20 to $.25 cents per share on an annualized basis beginning in 2001.

On January 18, 2001, MGM MIRAGE issued $400 million Senior Subordinated Notes, which carry a coupon of 8 3/8% and mature on February 1, 2011. Proceeds from the offering in the amount of $395 million were used to repay a portion of the outstanding amount under the company's $461 million Term Loan.

Subsequent to year-end, the company has reduced outstanding indebtedness by an additional $41 million. Also, MGM MIRAGE completed the sale of approximately $12 million in non-strategic assets. Since the acquisition of Mirage Resorts, the company has reduced debt by approximately $570 million and completed the sale of approximately $241 million of non-strategic assets.

MGM MIRAGE is an entertainment, hotel and gaming company headquartered in Las Vegas, Nevada, which owns and/or operates through subsidiaries 18 casino properties on three continents. Its U.S. holdings include: the MGM Grand Hotel and Casino - The City of Entertainment, Bellagio, The Mirage, Treasure Island, New York - New York Hotel and Casino, the Boardwalk Hotel and Casino and 50% of Monte Carlo, all located on the Las Vegas Strip; the Golden Nugget in Downtown Las Vegas; Whiskey Pete's, Buffalo Bill's and the Primm Valley Resort in Primm, Nevada as well as two championship golf courses at the California/Nevada Stateline; the Golden Nugget in Laughlin, Nevada; the Beau Rivage resort on the Mississippi Gulf Coast; and the MGM Grand Detroit Casino in Detroit, Michigan. The company is a joint venture partner on Borgata, a resort under development in Atlantic City, New Jersey and also controls several development sites in the ocean-front resort community. Internationally, MGM MIRAGE owns and operates the MGM Grand Hotel and Casino in Darwin, Australia and manages casinos in Nelspruit, Witbank and Johannesburg, Republic of South Africa.

For more information on MGM MIRAGE and its operating subsidiaries, visit our website at http://www.mgm-mirage.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
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (in thousands)
                                 (Unaudited)

                              Three Months Ended      Twelve Months Ended
                             December    December     December   December
                                31,         31,         31,         31,
                               2000        1999         2000       1999
  Revenues:
    Casino                   $616,218   $287,225    $1,913,733   $873,781
    Rooms                     217,888     69,149       620,626    266,490
    Food and beverage         173,196     43,800       490,981    161,856
    Entertainment, retail
     and other                155,409     54,835       471,525    196,626
    Income from
     unconsolidated
     affiliates                10,314         --        22,068      6,084
                            1,173,025    455,009     3,518,933  1,504,837
  Less: promotional
   allowances                 101,202     33,995       286,343    112,606
                            1,071,823    421,014     3,232,590  1,392,231
  Expenses:
    Casino                    310,504    144,515       933,621    434,241
    Rooms                      64,383     20,526       188,080     84,135
    Food and beverage         102,251     27,637       293,380    102,102
    Entertainment, retail
     and other                 99,936     30,543       291,711    112,046
    Provision for doubtful
     accounts and discounts    40,720     11,449       106,938     47,114
    General and
     administrative           137,096     59,361       422,655    190,934
    Preopening expenses
     and other                  1,816      2,715         5,624     71,496
    Restructuring costs            --         --        23,520         --
    Write-Downs and
     Impairments                   --         --       102,225         --
    Depreciation and
     amortization              96,085     38,994       293,181    126,610
                              852,791    335,740     2,660,935  1,168,678

  Operating Profit            219,032     85,274       571,655    223,553

  Corporate Expense             9,783      2,170        33,939     13,685
  Operating Income            209,249     83,104       537,716    209,868

  Non-Operating Income
   (Expense):
    Interest income             2,686        695        12,964      2,142
    Interest expense, net     (98,520)   (20,221)     (272,856)   (59,853)
    Interest expense from
     unconsolidated affiliates   (849)        --        (2,043)    (1,058)
    Other, net                    (47)      (208)         (741)      (946)
                              (96,730)   (19,734)     (262,676)   (59,715)

  Income Before Income Taxes,
   Extraordinary Item
   and Cumulative Effect of
   Change in Accounting
   Principle                  112,519     63,370       275,040    150,153
  Provision for income taxes  (44,517)   (23,448)     (108,880)   (55,029)

  Income Before Extraordinary
   Item and Cumulative
   Effect of Change in
   Accounting Principle        68,002     39,922       166,160     95,124

  Extraordinary Item:
    Loss on Early Extinguishment
     of Debt, net                  --         --        (5,416)      (898)

  Cumulative Effect of Change in
   Accounting Principle:
    Preopening Expenses, net       --         --            --     (8,168)
  Net Income                  $68,002    $39,922      $160,744   $ 86,058

  Income Before Preopening and
   Other, Restructuring,
   Write-Downs and Impairments,
   Extraordinary Item and
   Cumulative Effect of Change
   in Accounting Principle    $69,183    $41,687      $251,550   $141,596


                         MGM MIRAGE AND SUBSIDIARIES
                          PER SHARE OF COMMON STOCK
                                 (Unaudited)

                                  Three Months             Twelve Months
                                      Ended                    Ended
                              December     December    December   December
                                  31,        31,           31,        31,
                                 2000       1999          2000       1999
  Per Share Of Common Stock:
    Basic:
    Income Before Extraordinary
     Item and Cumulative
     Effect of Change in
     Accounting Principle       $0.43       $0.35        $1.15      $0.82
    Extraordinary Item, net        --         --         (0.04)     (0.01)
    Cumulative Effect of
     Change in Accounting
     Principle, net                --         --            --      (0.07)
    Net Income Per Share        $0.43      $0.35         $1.11      $0.74

    Weighted Average Shares
     Outstanding (000's)(1)   159,037    113,778       145,300    116,580

    Diluted:
    Income Before Extraordinary
     Item and Cumulative Effect
     of Change in Accounting
     Principle                  $0.42      $0.34         $1.13      $0.79
    Extraordinary Item, net        --         --         (0.04)     (0.01)
    Cumulative Effect of
     Change in Accounting
     Principle, net                --         --            --      (0.06)
    Net Income Per Share        $0.42      $0.34         $1.09      $0.72

    Weighted Average Shares
     Outstanding (000's)(1)   161,621    117,308       147,901    120,086


                         MGM MIRAGE AND SUBSIDIARIES
                 SUPPLEMENTAL DATA PER SHARE OF COMMON STOCK
                                 (Unaudited)

                                   Three Months            Twelve Months
                                      Ended                    Ended
                               December    December     December   December
                                  31,        31,           31,        31,
                                 2000       1999          2000       1999
  Per Share Of Common Stock:
    Basic:
    Net Income Before Preopening
     and other, Restructuring,
    Write-Downs and Impairments,
    Extraordinary Item and
    Cumulative Effect of Change
    in Accounting Principle     $0.44      $0.37         $1.75      $1.21
    Preopening expenses
     and Other                  (0.01)     (0.02)        (0.03)     (0.39)
    Restructuring costs            --         --         (0.11)        --
    Write-Downs and Impairments    --         --         (0.46)        --
    Extraordinary Item, net        --         --         (0.04)     (0.01)
    Cumulative Effect of
     Change in Accounting
     Principle, net                --         --            --      (0.07)
    Net Income Per Share        $0.43      $0.35         $1.11      $0.74

    Weighted Average Shares
     Outstanding (000's)(1)   159,037    113,778       145,300    116,580

  Diluted:
    Net Income Before Preopening
     and other, Restructuring,
     Write-Downs and Impairments,
     Extraordinary Item and
     Cumulative Effect of
     Change in Accounting
     Principle                  $0.43      $0.36         $1.70      $1.18
    Preopening expenses
     and Other                  (0.01)     (0.02)        (0.02)     (0.39)
    Restructuring costs            --         --         (0.10)        --
    Write-Downs and Impairments    --         --         (0.45)        --
    Extraordinary Item, net        --         --         (0.04)     (0.01)
    Cumulative Effect of
     Change in Accounting
     Principle, net                --         --            --      (0.06)
    Net Income Per Share        $0.42      $0.34         $1.09      $0.72

  Weighted Average Shares
   Outstanding (000's)(1)     161,621    117,308       147,901    120,086

  Note:
  (1)  All references to share and per share data herein have been adjusted
       retroactively to give effect to the 2 for 1 stock split.


                         MGM MIRAGE AND SUBSIDIARIES
                SUPPLEMENTAL DATA - PROPERTY OPERATING RESULTS
                                (in thousands)

                               Three Months Ended      Twelve Months Ended
                             December     December    December    December
                                31,         31,          31,         31,
                               2000         1999        2000        1999
  NET REVENUES:
    Bellagio (1)           $  261,863   $     --    $  591,035  $      --
    MGM Grand Las Vegas       216,563    202,951       830,871    790,079
    The Mirage (1)            157,830         --       363,455         --
    Treasure Island (1)        91,102         --       215,509         --
    New York-New York (2)      53,603     50,995       219,448    178,123
    Primm Properties (2)       53,084     54,448       239,648    199,410
    Golden Nugget
     Las Vegas (1)             45,458         --       103,090         --
    Golden Nugget
     Laughlin (1)              11,205         --        26,217         --
    MGM Grand Detroit (3)      93,663    100,904       402,659    172,923
    Beau Rivage (1)            67,880         --       177,824         --
    MGM Grand Australia         8,563     10,349        36,641     37,477
    Income from Unconsol.
     Affiliates (1) (4)        10,314         --        22,068      6,084
    MGM Grand South Africa      1,114      1,508         5,162      8,746
    Eliminations and Other       (419)      (141)       (1,037)      (611)
                           $1,071,823   $421,014    $3,232,590 $1,392,231

  EBITDA:
    Bellagio (1)           $   88,118   $     --    $  191,807 $       --
    MGM Grand Las Vegas        54,026     50,274       221,365    193,827
    The Mirage (1)             41,261         --        93,939         --
    Treasure Island (1)        26,818         --        62,400         --
    New York-New York (2)      22,579     21,453        96,353     80,194
    Primm Properties (2)       14,644     16,402        75,055     61,501
    Golden Nugget Las
     Vegas (1)                  8,053         --        17,753         --
    Golden Nugget
     Laughlin (1)                 636         --         1,903         --
    MGM Grand Detroit (3)      34,109     33,350       156,683     58,332
    Beau Rivage (1)            11,450         --        37,135         --
    MGM Grand Australia         4,209      4,158        15,532     14,552
    Income from Unconsol.
     Affiliates (1) (4)        10,314         --        22,068      6,084
    MGM Grand South Africa      1,091      1,441         5,065      7,562
    Eliminations and Other       (375)       (95)         (853)      (393)
                           $  316,933   $126,983    $  996,205 $  421,659

  Note:
  (1)  The Company acquired Mirage Resorts, Incorporated on May 31, 2000,
       thereby acquiring the Mirage Properties and 50% ownership in
       the Monte Carlo Resort & Casino.
  (2)  The Company acquired Primadonna Resorts, Inc. on March 1, 1999,
       thereby acquiring the Primm Properties and the remaining 50% of
       New York-New York.
  (3)  MGM Grand Detroit commenced operations on July 29, 1999.
  (4)  The 1999 results reflect two months of the Company's 50% share of
       New York-New York's income before New York-New York became a
       wholly-owned subsidiary of the Company on March 1, 1999.


                         MGM MIRAGE AND SUBSIDIARIES
           SUPPLEMENTAL DATA - PRO FORMA PROPERTY OPERATING RESULTS
                                (in thousands)

                              Three Months Ended       Twelve Months Ended
                             December    December     December    December
                                31,         31,          31,         31,
                               2000      1999 (1)     2000 (1)    1999 (1)
  NET REVENUES:
    Bellagio               $  261,863 $  275,070    $  995,626 $  997,094
    MGM Grand Las Vegas       216,563    202,951       830,871    790,079
    The Mirage                157,830    134,694       639,283    570,959
    Treasure Island            91,102     93,087       374,622    351,439
    New York-New York          53,603     50,995       219,448    213,339
    Primm Properties           53,084     54,448       239,648    237,394
    Golden Nugget Las Vegas    45,458     46,276       181,223    182,491
    Golden Nugget Laughlin     11,205     11,816        47,898     49,797
    MGM Grand Detroit(2)       93,663    100,904       402,659    172,923
    Beau Rivage (3)            67,880     67,362       310,702    238,888
    MGM Grand Australia         8,563     10,349        36,641     37,477
    Income from Unconsol.
     Affiliate                 10,314      6,441        38,630     32,109
    MGM Grand South Africa      1,114      1,508         5,162      8,746
    Eliminations and Other       (419)      (141)       (1,037)      (611)
                           $1,071,823 $1,055,760    $4,321,376 $3,882,124

  EBITDA:
    Bellagio               $   88,118 $   87,295    $  294,645 $  260,159
    MGM Grand Las Vegas        54,026     50,274       221,365    193,827
    The Mirage                 41,261     26,125       173,123    136,016
    Treasure Island            26,818     26,505       110,150     91,014
    New York-New York          22,579     21,453        96,353     96,208
    Primm Properties           14,644     16,402        75,055     70,446
    Golden Nugget Las Vegas     8,053      9,112        35,098     34,504
    Golden Nugget Laughlin        636      1,416         5,782      6,023
    MGM Grand Detroit (2)      34,109     33,350       156,683     58,332
    Beau Rivage (3)            11,450      4,592        67,129     33,121
    MGM Grand Australia         4,209      4,158        15,532     14,552
    Income from Unconsol.
     Affiliate                 10,314      6,441        38,630     32,109
    MGM Grand South Africa      1,091      1,441         5,065      7,562
    Eliminations and Other       (375)       (95)         (853)      (393)
                           $  316,933 $  288,469    $1,293,757 $1,033,480

  Note:
  (1)  Pro forma amounts include the results of operations for the periods
       presented before non-recurring expenses as if the acquisitions had
       occurred at the beginning of each period.  The acquisition of
       Primadonna Resorts, Inc. and Mirage Resorts, Incorporated occurred
       on March 1, 1999 and May 31, 2000, respectively.
  (2)  MGM Grand Detroit commenced operations on July 29, 1999.
  (3)  Beau Rivage commenced operations on March 16, 1999.  Fourth quarter
       and year-to-date 1999 amounts are before a one-time insurance claim
       of $12.0 million.


                         MGM MIRAGE AND SUBSIDIARIES
                     SUPPLEMENTAL STATISTICAL INFORMATION

                                  Three Months             Twelve Months
                                      Ended                    Ended
                              December    December     December   December
                                 31,        31,           31,        31,
                                2000       1999          2000       1999
  ROOM STATISTICS:
  Bellagio (1)
   (3,005 Rooms)
    Occupancy %                 94.9%      96.5%         97.7%      98.4%
    Average Daily Rate (ADR)     $179       $164          $169       $153
    Revenue per Available
     Room (REVPAR)               $170       $158          $165       $151

  MGM Grand Las Vegas
   (5,034 Rooms)
    Occupancy %                 92.1%      89.1%         96.8%      96.3%
    Average Daily Rate (ADR)     $115       $111          $110       $103
    Revenue per Available
     Room (REVPAR)               $106        $99          $106       $ 99

  The Mirage (1)
   (3,044 Rooms)
    Occupancy %                 95.6%      93.6%         97.2%      97.2%
    Average Daily Rate (ADR)     $123       $119          $118       $113
    Revenue per Available
     Room (REVPAR)               $117       $112          $115       $110

  Treasure Island (1)
   (2,885 Rooms)
    Occupancy %                 93.5%      97.1%         97.9%      98.5%
    Average Daily Rate (ADR)     $102       $ 93          $ 96       $ 92
    Revenue per Available
     Room (REVPAR)               $ 96       $ 90          $ 94       $ 90

  New York-New York (2)
   (2,024 Rooms)
    Occupancy %                 94.2%      87.2%         96.5%      95.7%
    Average Daily Rate (ADR)     $ 89       $ 92          $ 88       $ 85
    Revenue per Available
     Room (REVPAR)               $ 84       $ 80          $ 84       $ 82

  Primm Properties (2)
   (2,642 Rooms)
    Occupancy %                 56.5%      61.4%         63.6%      69.5%
    Average Daily Rate (ADR)     $ 39       $ 36          $ 38       $ 33
    Revenue per Available
     Room (REVPAR)               $ 22       $ 22          $ 24       $ 23

  Golden Nugget Las Vegas (1)
   (1,907 Rooms)
    Occupancy %                 95.5%      92.9%         97.4%      97.1%
    Average Daily Rate (ADR)     $ 62       $ 63          $ 59       $ 57
    Revenue per Available
     Room (REVPAR)               $ 59       $ 58          $ 57       $ 56

  Golden Nugget Laughlin (1)
   (300 Rooms)
    Occupancy %                 81.7%      87.7%         90.8%      94.0%
    Average Daily Rate (ADR)     $ 38       $ 35          $ 36       $ 35
    Revenue per Available
     Room (REVPAR)               $ 31       $ 31          $ 33       $ 33

  Beau Rivage (1)
   (1,780 Rooms)
    Occupancy %                 87.6%      80.5%         95.0%      85.4%
    Average Daily Rate (ADR)     $ 71       $ 82          $ 81       $ 90
    Revenue per Available
     Room (REVPAR)               $ 62       $ 66          $ 77       $ 77

  MGM Grand Australia
   (96 Rooms)
    Occupancy %                 64.2%      81.8%         77.2%      77.5%
    Average Daily Rate (ADR)     $ 56       $ 66          $ 62       $ 67
    Revenue per Available
     Room (REVPAR)               $ 36       $ 54          $ 48       $ 52

  Note:
  (1)  The Company acquired Mirage Resorts, Incorporated on May 31, 2000
       thereby acquiring the Mirage Properties and 50% ownership in the
       Monte Carlo Resort & Casino.  The statistics for the Mirage
       Properties reflect a full twelve months for the periods presented.
  (2)  The Company acquired Primadonna Resorts, Inc. on March 1, 1999,
       thereby acquiring the Primm Properties and the remaining 50% of
       New York-New York.  The statistics for the Primm Properties and
       New York-New York reflect a full twelve months for the periods
       presented.


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

                                    ASSETS

                                      December 31,        December 31,
                                          2000                1999

  CURRENT ASSETS:
    Cash and cash equivalents        $   227,968          $  121,522
    Accounts receivable, net             236,650              83,101
    Prepaid expenses                      70,549              32,598
    Inventories                           86,279              15,240
    Income tax receivable                 11,264                  --
    Deferred tax asset                   162,934              17,452
      Total current assets               795,644             269,913

  PROPERTY AND EQUIPMENT, NET          9,064,233           2,384,772

  OTHER ASSETS:
    Investment in unconsolidated
     affiliates                          522,422              12,485
    Excess of purchase price over
     fair market value of net assets
     acquired, net                        54,281              31,683
    Deposits and other assets, net       298,021              44,601
      Total other assets                 874,724              88,769
                                     $10,734,601          $2,743,454


                     LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Accounts payable                 $    65,317          $   45,914
    Income taxes payable                      --               3,296
    Dividend payable                          --              11,388
    Current obligation,
     capital leases                        4,099               5,145
    Current portion-long term debt       521,308               7,852
    Accrued interest on
     long term debt                       77,738              18,915
    Other accrued liabilities            595,011             197,580
      Total current liabilities        1,263,473             290,090

  DEFERRED REVENUES                        3,113               4,241
  DEFERRED INCOME TAXES                1,730,158             108,713
  LONG TERM OBLIGATION,
   CAPITAL LEASES                          7,092              12,864
  LONG TERM DEBT                       5,348,320           1,304,345
  COMMITMENTS and CONTINGENCIES
  STOCKHOLDERS' EQUITY:
    Common stock ($.01 par value,
     300,000,000 shares authorized,
     159,130,205 and 113,879,848
     shares issued)                        1,632               1,384
    Capital in excess of par value     2,041,820           1,261,625
    Treasury stock, at cost
     (4,059,000 and
     24,565,200 shares)                  (83,683)           (505,824)
    Retained earnings                    427,956             267,165
    Other comprehensive income            (5,280)             (1,149)
      Total stockholders' equity       2,382,445           1,023,201
                                     $10,734,601          $2,743,454

SOURCE: MGM MIRAGE

Contact: investors, James J. Murren, President and Chief Financial
Officer, 702-693-8877, or media, Alan Feldman, Vice President, Public Affairs,
702-693-7147, both of MGM MIRAGE

Website: http://www.mgm-mirage.com/

Company News On-Call: http://www.prnewswire.com/comp/000725.html or fax,
800-758-5804, ext. 000725