MGM MIRAGE Reports First Quarter Results

April 16, 2003

MGM MIRAGE (NYSE: MGG) today reported its first quarter 2003 financial results. Adjusted earnings per diluted share ("Adjusted EPS") was $0.40 in the first quarter of 2003, versus $0.52 in the 2002 quarter. First quarter Adjusted EPS was in line with the Company's previously announced guidance of $0.35 to $0.40.

Adjusted EPS (and Adjusted Earnings) excludes preopening and start-up expenses, restructuring costs, and property transactions, net(1). Diluted EPS computed in accordance with generally accepted accounting principles ("GAAP EPS") decreased to $0.33 for the first quarter of 2003 from $0.51 in the 2002 quarter.

"We performed largely as we expected in the first quarter, which is particularly noteworthy given current economic and world events. Our resorts posted solid results due to strong business volumes," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We are cognizant of near-term challenges, but continue to focus on maximizing the power of our brands, superior resorts, and world-class employees to generate market-leading results."

                  First Quarter 2003 Company Highlights

   *  Earned revenues of $1.02 billion, up 1% from 2002;

   *  Amended the 364-Day Revolving Credit Facility, extending the maturity
      to April 2, 2004 and securing total available borrowings of
      $525 million.

   *  Used $101 million of cash to repay debt and repurchase common stock;

   *  Invested $88 million of capital in the Company's properties, including
      maintenance and expansion projects;

   *  Opened Tabu, the Ultra-Lounge, at MGM Grand Las Vegas, and Caramel and
      Mist, new lounges at Bellagio and Treasure Island, respectively.

   *  Announced a new Irish Pub at New York-New York, complementing the
      resort's improved entertainment amenities, including the new Cirque du
      Soleil show, Zumanity, slated to open this summer.

                        Detailed Financial Results

The following table shows key financial results on a Company-wide basis for the first quarter.

                                            Three months ended
                                                 March 31,
                                            2003           2002
                                               (In millions)
   Casino revenue, net                  $  545.3        $  567.4
   Non-casino revenue, net                 476.6           440.0
   Net revenue                           1,021.9         1,007.4
   Property-level EBITDA(2)                301.8           324.1
   EBITDA (after corporate expense)(2)     288.0           313.5
   Operating income                        167.6           207.9
   Net income                               51.0            82.0
   Adjusted Earnings                        60.9            83.4

Net revenue in the first quarter grew 1% from the 2002 first quarter, benefiting from strong hotel and other non-gaming results throughout much of the quarter, offset by lower gaming revenues. Casino revenue decreased by 4% in the 2003 quarter. Table games volume, including baccarat, was down 1% from the 2002 quarter. Table games hold percentages were within a normal range for both periods, but the hold percentage was higher in last year's quarter. Slot revenue in the quarter was up 4% from 2002. Bellagio had another strong quarter in slots, with revenue up 10% in the quarter. This was Bellagio's fourth straight quarter of double-digit year-over-year slot revenue growth. New York-New York also posted a strong 19% increase in slot revenues over last year. MGM Grand Detroit slot revenues were down 3% compared to last year.

Non-casino revenue was up 8% in this year's quarter, as a result of continued year-over-year improvement in visitation trends and room rates. Hotel occupancy was 90% in the first quarter of 2003, up slightly over 89% in 2002, while the average daily room rate ("ADR") was $120, up 8% over 2002. As a result, revenue per available room ("REVPAR") increased 8% to $108 in the 2003 first quarter when compared with 2002.

Food and beverage, entertainment, retail and other revenues showed solid gains in the first quarter. These revenues increased 16% at MGM Grand Las Vegas, even after the impact of closing the EFX! show in January 2003. This resort's mix of dining and entertainment has improved significantly since last year, as management's transformation of the resort continues to benefit financial results. Bellagio and The Mirage also showed strong growth in food and beverage revenues, up 7% and 8%, respectively.

For the quarter, EBITDA was down 8% from the year-ago period, and operating income was down 19%. The decrease in EBITDA was primarily the result of increased labor costs in the quarter, along with increased property taxes and insurance costs. Operating income decreased due to those items and higher preopening expenses and net property transactions.

Adjusted Earnings and net income decreased by 27% and 38%, respectively, in the first quarter due to the decrease in operating income and higher net interest expense. Net interest expense was higher due to the Company's decision to suspend development of its wholly-owned Atlantic City development project, resulting in lower capitalized interest, and the prior year savings from interest rate swaps.

Net income for the first quarter of 2003 included a net $14.8 million ($9.9 million, net of tax) of items excluded from Adjusted Earnings. These items included:

   *  Preopening and start-up expenses of $7.4 million, including
      $4.2 million related to the Company's Borgata investment and
      $1.7 million related to Players Club;

   *  Net property transactions of $6.8 million, resulting primarily from
      asset impairments and demolition costs associated with the closure of
      the EFX! show ($4.7 million), and other asset impairments at MGM Grand
      Las Vegas ($1.4 million);

   *  Restructuring costs of $0.6 million.

In the first quarter of 2002, similar items totaled $2.2 million ($1.5 million, net of tax), and consisted of preopening expenses related primarily to MGM MIRAGE Online and Borgata.

                            Financial Position

   *  Repaid $34 million of debt;

   *  Repurchased the remaining 1.4 million shares of Company common stock
      available under the 2001 authorization at a total cost of $36 million;

   *  Announced Board of Director approval for a new 10 million share
      repurchase program, and repurchased 1.2 million shares under the new
      authorization at a total cost of $31 million.

First quarter capital expenditures of $88 million included costs related to continued implementation of new slot technology, the Bellagio expansion, construction of the two new theatres for Cirque du Soleil at New York-New York and MGM Grand Las Vegas, and other maintenance expenditures.

After giving effect to the extension of the 364-day credit facility, the Company has approximately $654 million of available borrowings under its senior credit facilities, with no public debt maturities until 2005.

"We are pleased to have secured continuing available credit at terms consistent with our past borrowings. Our extended facility also gives us the flexibility needed to pursue development opportunities," said MGM MIRAGE President, CFO and Treasurer Jim Murren. "We are analyzing a variety of growth opportunities, and while we explore them we are actively returning value to shareholders through targeted investments in our existing resorts, debt reductions, and prudent stock repurchases consistent with the strength of our balance sheet," Mr. Murren said.

                          Operational Highlights

   *  Successfully launched Players Club at Beau Rivage, the sixth resort
      linked to the program;

   *  Continued installation of IGT's EZ-Pay™ cashless gaming system at
      the Company's resorts, with over 10,000 machines converted to cashless
      technology by quarter-end;

   *  Further enhanced our resorts with world-class lounge and entertainment
      offerings, including Tabu, the Ultra Lounge, at MGM Grand Las Vegas,
      Caramel bar and lounge at Bellagio, and Mist bar and lounge at
      Treasure Island.


   *  Anticipate the opening of Borgata this summer, with our final capital
      contributions of up to $40 million to be made in the second and third

   *  Forecast capital expenditures (excluding required contributions to
      Borgata) of $100 million in the second quarter of 2003, including
      continued development expenditures related to the Bellagio expansion
      and theatres for the two new Cirque du Soleil shows.

"Global events and the current state of the economy create a difficult environment in which to forecast performance," said Mr. Lanni. "Incoming call volumes are slightly lower than last year's pace while we continue to operate with shortened booking windows. While these conditions may put pressure on near-term performance, we are confident that the Las Vegas market will once again prove its durability, and that an improving economy and resolution to global uncertainties will spur increased spending by our customers."

MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the second quarter at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at or, or by calling 1-800-299-7635 (domestic) or 1-617-786-2901 (international) with the access code "MGM MIRAGE". A complete replay of the conference call will be made available at .

(1) Adjusted Earnings (and Adjusted EPS) is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of performance, and 2) a principal basis for valuation of gaming companies, as this measure is considered by many to be a better measure on which to base expectations of future results than GAAP net income. A reconciliation of Adjusted Earnings and EPS to GAAP net income and EPS is included in the financial schedules accompanying this release.

(2) EBITDA is earnings before interest, taxes, depreciation and amortization, restructuring, preopening and start-up expenses, and property transactions, net. EBITDA 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. Management uses property-level EBITDA (EBITDA before corporate expense) 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. A reconciliation of EBITDA to operating income is included in the financial schedules accompanying this release.

MGM MIRAGE (NYSE: MGG), one of the world's leading and most respected hotel and gaming companies, owns and operates 14 casino resorts located in Nevada, Mississippi, Michigan and Australia, and has investments in two other casino resorts in Nevada and New Jersey. The company is headquartered in Las Vegas, Nevada, and offers an unmatched collection of casino resorts with a limitless range of choices for guests. Guest satisfaction is paramount, and the company has approximately 43,000 employees committed to that result. Its portfolio of brands include AAA Five Diamond award-winner Bellagio, MGM Grand Las Vegas - The City of Entertainment, The Mirage, Treasure Island, New York - New York, Boardwalk Hotel and Casino and 50 percent of Monte Carlo, all located on the Las Vegas Strip; Golden Nugget in downtown Las Vegas; Whiskey Pete's, Buffalo Bill's, Primm Valley Resort and two championship golf courses at the California/Nevada state line; the exclusive Shadow Creek golf course in North Las Vegas; Golden Nugget in Laughlin, Nevada; Beau Rivage on the Mississippi Gulf Coast; and MGM Grand Detroit Casino in Detroit, Michigan. The Company is also a 50-percent owner of Borgata, a destination casino resort under development on Renaissance Pointe in Atlantic City, New Jersey. Borgata is scheduled to open this summer. Internationally, MGM MIRAGE owns and operates MGM Grand Australia in Darwin, Australia. For more information about MGM MIRAGE, please visit the company's website at .

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
                    (In thousands, except per share data)

                                                    Three Months Ended
                                                 March 31,       March 31,
                                                    2003           2002
    Casino                                        $545,343       $567,389
    Rooms                                          225,539        206,499
    Food and beverage                              201,937        188,180
    Entertainment, retail and other                162,049        152,955
                                                 1,134,868      1,115,023
    Less: Promotional allowances                   112,938        107,617
                                                 1,021,930      1,007,406
    Casino                                         287,405        281,604
    Rooms                                           63,137         53,953
    Food and beverage                              113,946         97,585
    Entertainment, retail and other                108,259         99,835
    Provision for doubtful accounts                  7,966         12,058
    General and administrative                     150,256        147,483
    Corporate expense                               13,746         10,635
    Preopening and start-up expenses                 7,431          2,239
    Restructuring costs                                605             --
    Property transactions, net                       6,784             --
    Depreciation and amortization                  105,613        103,373
                                                   865,148        808,765

  Income from unconsolidated affiliate              10,789          9,225

  Operating income                                 167,571        207,866

  Non-operating income (expense):
    Interest income                                  1,777          1,240
    Interest expense, net                          (85,988)       (72,597)
    Interest expense from unconsolidated affiliate      --           (277)
    Other, net                                         389         (2,623)
                                                   (83,822)       (74,257)

  Income before income taxes                        83,749        133,609
    Provision for income taxes                     (32,746)       (51,653)

  Net income                                       $51,003        $81,956

  Per share of common stock:
    Net income per share                             $0.34          $0.52

    Weighted average shares outstanding            152,110        158,011

    Net income per share                             $0.33          $0.51

    Weighted average shares outstanding            153,549        160,152

                         MGM MIRAGE AND SUBSIDIARIES
                    (In thousands, except per share data)

                                                     Three Months Ended
                                                  March 31,      March 31,
                                                     2003           2002

  Net income                                       $51,003        $81,956
  Preopening and start-up expenses, net              5,088          1,455
  Restructuring costs, net                             393             --
  Property transactions, net                         4,410             --
  Adjusted earnings                                $60,894        $83,411

  Per diluted share of common stock:
    Net income                                       $0.33          $0.51
    Preopening and start-up expenses, net             0.04           0.01
    Restructuring costs, net                            --             --
    Property transactions, net                        0.03             --
    Adjusted EPS                                     $0.40          $0.52

    Weighted average diluted shares outstanding    153,549        160,152

                         MGM MIRAGE AND SUBSIDIARIES
                                (In thousands)

                      Three Months Ended March 31, 2003

                             Depreci-  Preopening           Property
                             ation and     and     Restruc- trans-
                   Operating  amorti-   start-up    turing  actions,
                    income    zation    expenses     costs   net    EBITDA
  Bellagio          $40,281   $27,872      $--       $--     $10   $68,163
  MGM Grand
   Las Vegas         26,879    20,188      591        25   6,331    54,014
  The Mirage         29,694    12,435       --       300     (69)   42,360
  Treasure Island    18,081     8,219       --        --     (77)   26,223
  New York-New York  19,471     5,950       52        --      42    25,515
  MGM Grand Detroit  28,197     8,581       --        --     156    36,934
  Beau Rivage        10,002     4,641       --        --     206    14,849
  Other operations   12,336     9,715      884        --     (32)   22,903
   affiliate         10,789        --       --        --      --    10,789
                    195,730    97,601    1,527       325   6,567   301,750
   and other        (28,159)    8,012    5,904       280     217   (13,746)
                   $167,571  $105,613   $7,431      $605  $6,784  $288,004

                      Three Months Ended March 31, 2002

                             Depreci-  Preopening           Property
                             ation and     and     Restruc- trans-
                   Operating  amorti-   start-up    turing  actions,
                    income    zation    expenses     costs   net    EBITDA
  Bellagio          $63,346   $23,299      $--       $--     $--   $86,645
  MGM Grand
   Las Vegas         33,093    22,268       --        --      --    55,361
  The Mirage         27,353    12,651       --        --      --    40,004
  Treasure Island    17,216     8,380       --        --      --    25,596
  New York-New York   8,421    11,198       --        --      --    19,619
  MGM Grand Detroit  40,335     5,791       --        --      --    46,126
  Beau Rivage         9,362     6,182       --        --      --    15,544
  Other operations   15,332     9,563    1,098        --      --    25,993
   affiliate          9,225        --       --        --      --     9,225
                    223,683    99,332    1,098        --      --   324,113
   and other        (15,817)    4,041    1,141        --      --   (10,635)
                   $207,866  $103,373   $2,239       $--     $--  $313,478

                         MGM MIRAGE AND SUBSIDIARIES
                                (In thousands)

                                                     Three Months Ended
                                                  March 31,      March 31,
                                                    2003           2002
  Bellagio                                      $  240,364     $  244,448
  MGM Grand Las Vegas                              184,143        184,987
  The Mirage                                       150,107        140,397
  Treasure Island                                   89,942         86,601
  New York-New York                                 61,911         50,322
  MGM Grand Detroit                                 94,769        103,619
  Beau Rivage                                       70,411         71,902
  Other operations                                 130,283        125,130
                                                $1,021,930     $1,007,406

                         MGM MIRAGE AND SUBSIDIARIES

                                                      Three Months Ended
                                                   March 31,      March 31,
                                                     2003           2002
   Occupancy %                                       91.7%          92.8%
   Average daily rate (ADR)                           $238           $217
   Revenue per available room (REVPAR)                $219           $202

  MGM Grand Las Vegas
   Occupancy %                                       92.7%          90.2%
   Average daily rate (ADR)                           $119           $113
   Revenue per available room (REVPAR)                $111           $101

  The Mirage
   Occupancy %                                       92.2%          93.0%
   Average daily rate (ADR)                           $149           $139
   Revenue per available room (REVPAR)                $137           $130

  Treasure Island
   Occupancy %                                       94.9%          95.2%
   Average daily rate (ADR)                           $110            $99
   Revenue per available room (REVPAR)                $104            $94

  New York-New York
   Occupancy %                                       99.0%          95.0%
   Average daily rate (ADR)                           $101            $90
   Revenue per available room (REVPAR)                $100            $85

  Beau Rivage
   Occupancy %                                       91.0%          91.6%
   Average daily rate (ADR)                            $87            $81
   Revenue per available room (REVPAR)                 $79            $74

  Other operations
   Occupancy %                                       78.4%          77.8%
   Average daily rate (ADR)                            $53            $52
   Revenue per available room (REVPAR)                 $42            $41

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


                                                  March 31,    December 31,
                                                    2003           2002
  Current assets:
    Cash and cash equivalents                  $   172,134    $   211,234
    Accounts receivable, net                       134,586        139,935
    Inventories                                     68,066         83,582
    Deferred income taxes                           65,604         84,348
    Prepaid expenses and other                      87,572         86,311
       Total current assets                        527,962        605,410

  Property and equipment, net                    8,739,506      8,762,445

  Other assets:
    Investment in unconsolidated affiliates        713,682        710,802
    Goodwill and other intangible assets, net      257,351        256,108
    Deposits and other assets, net                 192,835        170,220
       Total other assets                        1,163,868      1,137,130
                                               $10,431,336    $10,504,985


  Current liabilities:
    Accounts payable                            $   75,168     $   69,959
    Income taxes payable                            13,445            637
    Current portion of long-term debt                7,356          6,956
    Accrued interest on long-term debt              56,267         80,310
    Other accrued liabilities                      567,665        592,206
       Total current liabilities                   719,901        750,068

  Deferred income taxes                          1,761,541      1,769,431
  Long-term debt                                 5,184,236      5,213,778
  Other long-term obligations                      112,594        107,564
  Stockholders' equity:
    Common stock ($.01 par value:
     authorized 300,000,000 shares,
     issued 166,399,089 and
     166,393,025 shares and outstanding
     152,021,689 and 154,574,225 shares)             1,664          1,664
    Capital in excess of par value               2,125,999      2,125,626
    Deferred compensation                          (25,195)       (27,034)
    Treasury stock, at cost (14,377,400 and
     11,818,800 shares)                           (384,172)      (317,432)
    Retained earnings                              941,209        890,206
    Other comprehensive loss                        (6,441)        (8,886)
       Total stockholders' equity                2,653,064      2,664,144
                                               $10,431,336    $10,504,985


CONTACT: Investment Community, James J. Murren, President, Chief
Financial Officer and Treasurer, +1-702-693-8877, or Media, Alan Feldman,
Senior Vice President, Public Affairs, +1-702-891-7147, both of MGM MIRAGE