MGM MIRAGE Reports Second Quarter Results

July 17, 2003
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGG) today reported its second quarter 2003 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") was $0.45 in the second quarter of 2003 versus $0.55 in the 2002 quarter. Second quarter results were above the Company's previously announced guidance of $0.25 to $0.35 (before the effect of discontinued operations).

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, and property transactions, net(1). In the 2002 second quarter, Adjusted EPS and Adjusted Earnings also excludes fees received from the buyout of the Company's South Africa management agreement. Diluted EPS from continuing operations computed in accordance with generally accepted accounting principles ("GAAP") decreased to $0.36 for the second quarter of 2003 from $0.62 in the 2002 quarter. GAAP diluted earnings per share, including the results of discontinued operations, was $0.35 in 2003 versus $0.63 in 2002.

"Our second quarter performance was strong across our portfolio of resorts. We generated higher earnings than we initially expected considering the global events at the outset of the quarter, though earnings remain below prior year's results," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We are mindful that in addition to continued labor cost pressure, higher taxes in Nevada and New Jersey will impact earnings going forward."

                    Second Quarter Company Highlights

   -- Generated net revenues of $985 million, up 3% from 2002 after
      excluding prior year revenue from the buyout of the Company's
      management agreement in South Africa;

   -- Borgata, of which the Company owns 50%, held a successful opening
      on July 2nd, and response to date has been overwhelmingly positive;

   -- Invested $140 million of capital in the Company's properties,
      including maintenance and expansion projects;

   -- Repaid $72 million of debt in the quarter, for a total of $106 million
      for the year;

   -- Repurchased $24 million of Company common stock in the second quarter.
      Year-to-date, the Company has repurchased 3.4 million shares for
      $91 million;

   -- Reached agreement to sell the Golden Nugget properties in Las Vegas
      and Laughlin for $215 million, subject to customary conditions and
      approvals;

   -- Selected by the New York Racing Association to manage a VLT facility
      at Aqueduct in New York;

   -- Acquired a 25% interest in Metro Casinos Limited, our first entrance
      into the United Kingdom gaming market;

   -- Opened Nine Fine Irishmen, an authentic Irish Pub, at
      New York-New York in early July;

   -- Introduced the new logo and branding campaign for Treasure Island, to
      be known as "TI," which will be followed by new restaurants and a
      revamped show at the front of the resort later this year;

   -- Continued installation of IGT's EZ-Pay™ cashless gaming system at
      the Company's resorts, with over 12,000 machines converted to cashless
      technology by quarter-end.

                        Detailed Financial Results

The following table shows key financial results on a Company-wide basis for the second quarter and year to date.

                               Three months ended        Six months ended
                                    June 30,                 June 30,
                                2003        2002         2003         2002
                                              (In millions)
   Casino revenue, net        $ 518.1     $ 497.8     $ 1,021.5    $ 1,027.3
   Non-casino revenue, net      467.2       473.1         924.1        893.6
   Net revenue                  985.3       970.9       1,945.6      1,920.9
   Operating income             174.6       228.5         336.0        430.6
   Income from continuing
    operations                   55.9       100.4         105.4        180.4
   Discontinued
    operations, net              (2.1)        1.5          (0.6)         3.4
   Net income                    53.8       101.9         104.8        183.8

   Property-level EBITDA(2)   $ 310.7     $ 327.1     $   601.3    $   640.7
   EBITDA (after
    corporate expense)(2)       295.6       316.1         572.6        619.1
   Adjusted Earnings             68.3        88.5         126.9        169.3


Except where noted, all references in this release to operating results, including statistical information, exclude the results of the Golden Nugget Las Vegas, Golden Nugget Laughlin and MGM MIRAGE Online for all periods presented. The results of these operations are classified as discontinued operations.

Net revenue in the second quarter increased 3% from the 2002 second quarter after excluding prior year South Africa revenue. This increase was due to higher volumes of hotel customers and a higher mix of leisure and casino customers to convention customers, leading to solid gaming results.

Casino revenue increased by 4% in the 2003 quarter. Table games volume, including baccarat, was up 3% from the prior year's quarter, while table games hold percentages were within a normal range for both periods. Table games volume was particularly strong at Bellagio, up 15% over prior year. Company- wide slot revenue in the quarter was up 3% from 2002. Bellagio slot revenue was up 3% in the quarter, on top of last year's 17% increase over 2001. New York-New York and The Mirage also posted strong increases in slot revenues, up 10% and 9% over last year, respectively. MGM Grand Detroit slot revenues were up 7% and Beau Rivage posted a 6% increase, as these markets' revenue trends showed signs of improvement in the quarter.

Non-casino revenue was up 1% after excluding prior year South Africa revenue. Hotel revenue was flat, with slightly higher occupancy of 92% in the second quarter of 2003 versus 91% in 2002, while the average daily room rate ("ADR") was $121, down from $122 in 2002. As a result, revenue per available room ("REVPAR") was $111, flat compared with 2002.

Food and beverage, entertainment, retail and other revenues, excluding prior year South Africa revenue, were up 2% in the 2003 quarter. These increases resulted primarily from the increases in hotel volumes.

Excluding South Africa's results, EBITDA was down 3% for the quarter, and operating income was down 20%. The decrease in EBITDA was primarily the result of increased labor costs in the quarter, along with increased property taxes and insurance costs, as well as the $5 million paid to Nevada gaming regulators to settle currency transaction reporting violations at The Mirage. Operating income decreased due to those items, higher preopening and start-up expenses, higher net property transactions, and the non-recurring restructuring credit recorded in 2002. These items are discussed in detail below.

Second quarter Adjusted Earnings decreased by 23% compared to prior year due to the decrease in operating income and higher net interest expense. Net interest expense was higher due to prior year savings from interest rate swaps and the Company's October 2002 decision to suspend development of its wholly- owned Atlantic City development project, which resulted in lower capitalized interest.

For the second quarter of 2003, Adjusted Earnings excluded a net $19.2 million ($12.5 million, net of tax) of items. These items included:

   -- Preopening and start-up expenses of $14.9 million ($9.7 million,
      net of tax), including $12.0 million related to the Company's Borgata
      investment and $2.0 million related to the upcoming Cirque du Soleil
      show and recently opened Nine Fine Irishmen Pub at New York-New York;

   -- Net property transactions of $3.7 million ($2.4 million, net of tax),
      including $2.2 million at MGM Grand Las Vegas consisting of asset
      write-downs in preparation for a new Italian restaurant and costs
      incurred in preparation for the resort's new Cirque du Soleil show;

   -- Restructuring costs of $0.6 million ($0.4 million, net of tax).

In the second quarter of 2002, items excluded in the determination of Adjusted Earnings included $3.6 million ($2.3 million, net of tax) of preopening and start-up expenses, a restructuring credit of $10.4 million ($6.8 million, net of tax), and $11.4 million ($7.4 million, net of tax) of revenue related to the sale of the Company's interest in managing four South African casinos.

Loss from discontinued operations includes the results of MGM MIRAGE Online and the Golden Nugget Las Vegas and Golden Nugget Laughlin resorts. In June 2003, the Company ceased operations of its online gaming site, operated by MGM MIRAGE Online. The second quarter results include pretax operating losses of $3 million for the second quarter and a pretax impairment loss of $7 million.

In June 2003, the Company announced an agreement to sell the Golden Nugget Las Vegas and Golden Nugget Laughlin to Poster Financial Group for $215 million. Included in discontinued operations is pretax income related to these resorts of $2 million and $3 million for the second quarters of 2003 and 2002, respectively, including an allocation of the Company's interest costs to these operations. The Company expects to record a modest gain on the sale of these resorts, which is expected to close before the end of 2003.

Financial Position

Second quarter capital investments of $140 million included required contributions to Borgata, costs related to continued implementation of new slot technology, the Bellagio expansion and standard room remodel, construction of the two new theatres for Cirque du Soleil at New York-New York and MGM Grand Las Vegas, and other routine capital expenditures.

During the second quarter, the Company announced two transactions with strategic importance. The New York Racing Association selected the Company to manage its Video Lottery Terminal ("VLT") operation at Aqueduct racetrack in New York. As currently contemplated, the facility will house 4,500 VLTs and the Company will receive a management fee based on a percentage of revenue. The Company anticipates that the facility will be open by year-end. In addition, the Company has purchased a 25% stake in Metro Casinos Limited, a gaming company in the United Kingdom.

"Our investing and financial strategies are designed to better position us for targeted growth initiatives," said MGM MIRAGE President, CFO and Treasurer Jim Murren. "Meanwhile, we continue to invest in our existing core assets and de-capitalize our balance sheet with excess cash," Mr. Murren said.

As of June 30, 2003, the Company had approximately $711 million of available borrowings under its senior credit facilities, with no public debt maturities until 2005.

MGM MIRAGE will hold a conference call to discuss its earnings results and outlook for the third quarter at 11:00 a.m. Eastern Daylight Time today. The call can be accessed live at www.companyboardroom.com or www.mgmmirage.com, or by calling 1-888-276-0009 (domestic) or 1-612-288-0318 (international). A complete replay of the conference call will be made available at www.mgmmirage.com.

   (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 income from continuing operations computed in accordance
       with generally accepted accounting principles ("GAAP").
       Reconciliations of GAAP income from continuing operations and EPS to
       Adjusted Earnings and EPS are 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.  Reconciliations of operating income to EBITDA are 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; 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; Beau Rivage on the Mississippi Gulf Coast; and MGM Grand Detroit Casino in Detroit, Michigan. The Company has entered an agreement to sell Golden Nugget Las Vegas and Golden Nugget Laughlin pending finalization. The Company is also a 50-percent owner of Borgata, a destination casino resort at Renaissance Pointe in Atlantic City, New Jersey. Internationally, MGM MIRAGE owns and operates MGM Grand Australia in Darwin, Australia, and holds a 25 percent interest in casino developer Metro Casinos Limited of Great Britain. 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         Six Months Ended
                         June 30,     June 30,     June 30,     June 30,
                           2003         2002         2003         2002
  Revenues:
    Casino             $  518,061   $ 497,793   $ 1,021,510  $  1,027,284
    Rooms                 213,374     213,119       427,008       408,261
    Food and beverage     191,510     182,676       380,827       358,927
    Entertainment,
     retail and other     160,796     175,413       319,386       324,460
                        1,083,741   1,069,001     2,148,731     2,118,932
    Less: Promotional
     allowances            98,397      98,077       203,143       198,003
                          985,344     970,924     1,945,588     1,920,929
  Expenses:
    Casino                255,344     250,884       520,322       511,366
    Rooms                  59,257      53,986       117,386       103,684
    Food and beverage     107,855      99,055       213,873       189,325
    Entertainment,
     retail and other     105,921     101,696       209,726       198,487
    Provision for
     doubtful accounts      6,784      10,879        14,420        22,678
    General and
     administrative       148,069     136,509       287,861       273,107
    Corporate expense      15,022      10,930        28,768        21,565
    Preopening and
     start-up expenses     14,896       3,599        21,443         4,738
    Restructuring costs
     (credit)                 548     (10,421)        1,153       (10,421)
    Property
     transactions, net      3,734          --        10,550            --
    Depreciation and
     amortization         101,904      94,448       203,454       194,152
                          819,334     751,565     1,628,956     1,508,681

  Income from
   unconsolidated
   affiliate                8,547       9,148        19,336        18,373

  Operating income        174,557     228,507       335,968       430,621

  Non-operating income
  (expense):
    Interest income           853       1,207         2,620         2,424
    Interest
     expense, net         (81,035)    (66,924)     (164,659)     (137,388)
    Interest expense
     from unconsolidated
     affiliate                 --        (311)           --          (588)
    Other, net             (5,694)     (2,706)       (5,101)       (5,190)
                          (85,876)    (68,734)     (167,140)     (140,742)

  Income before income
   taxes and discontinued
   operations              88,681     159,773       168,828       289,879
    Provision for income
     taxes                (32,829)    (59,393)      (63,428)     (109,502)
  Income from continuing
   operations              55,852     100,380       105,400       180,377

  Discontinued operations
    Income (loss)
     from discontinued
     operations, including
     loss on disposal
     of $7,357             (8,523)      2,642        (4,926)        6,145
    Benefit (provision)
     for income taxes       6,421      (1,147)        4,279        (2,691)
                           (2,102)      1,495          (647)        3,454

  Net income           $   53,750   $ 101,875   $   104,753   $   183,831


  Per share of common stock:

    Basic:
    Income from
     continuing
     operations        $    0.37    $    0.63   $      0.70   $     1.14
    Discontinued
     operations            (0.01)        0.01         (0.01)        0.02
    Net income
     per share         $    0.36    $    0.64   $      0.69   $     1.16

    Weighted average
     shares outstanding   150,721     159,366       151,412       158,692

    Diluted:
    Income from
     continuing
     operations        $    0.36    $    0.62   $      0.69   $     1.12
    Discontinued
     operations            (0.01)        0.01         (0.01)        0.02
    Net income
     per share         $    0.35    $    0.63   $      0.68   $     1.14

    Weighted average
     shares outstanding   153,052     161,693       153,241       160,894



                         MGM MIRAGE AND SUBSIDIARIES
         RECONCILIATION OF GAAP INCOME FROM CONTINUING OPERATIONS AND
                       EPS TO ADJUSTED EARNINGS AND EPS
                    (In thousands, except per share data)
                                 (Unaudited)

                              Three Months Ended       Six Months Ended
                              June 30,  June 30,     June 30,    June 30,
                               2003       2002        2003         2002
  Income from continuing
   operations              $  55,852  $  100,380   $ 105,400   $  180,377
  Preopening and start-up
   expenses, net               9,683       2,340      13,938        3,080
  Restructuring costs
   (credit), net                 356      (6,774)        749       (6,774)
  Property
   transactions, net           2,427          --       6,858           --
  Management agreement
   termination fee, net           --      (7,419)         --       (7,419)
  Adjusted earnings        $  68,318  $   88,527   $ 126,945   $  169,264

  Per diluted share of
   common stock:
    Income from continuing
     operations            $    0.36  $     0.62   $    0.69   $    1.12
    Preopening and start-up
     expenses, net              0.07        0.02        0.09        0.02
    Restructuring costs
     (credit), net                --       (0.04)       0.01       (0.04)
    Property
     transactions, net          0.02          --        0.04          --
    Management agreement
     termination fee, net         --       (0.05)         --       (0.05)
    Adjusted EPS           $    0.45  $     0.55   $    0.83   $    1.05

    Weighted average
     diluted shares
     outstanding             153,052     161,693     153,241     160,894



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

                      Three Months Ended June 30, 2003

                               Depreci-   Pre-
                                ation   opening            Property
                                 and      and    Restruc-   trans-
                   Operating   amorti-  start-up  turing   actions,
                    income     zation   expenses   costs     net    EBITDA
  Bellagio         $ 66,267  $ 27,143  $    --  $   --    $   95   $ 93,505
  MGM Grand
   Las Vegas         28,339    20,540      300      --     2,148     51,327
  The Mirage         25,131    12,332       --      --       (76)    37,387
  Treasure Island    14,397     8,600       --     178       (56)    23,119
  New York-New York  14,847     5,938    2,015      --       (18)    22,782
  MGM Grand Detroit  30,480     8,543      300      --       300     39,623
  Beau Rivage        14,171     4,762       --      --       815     19,748
  Other operations    8,480     5,643       --      --       500     14,623
  Unconsolidated
   affiliate          8,547        --       --      --        --      8,547
                    210,659    93,501    2,615     178     3,708    310,661
  Corporate
   and other        (36,102)    8,403   12,281     370        26    (15,022)

                   $174,557  $101,904  $14,896  $  548    $3,734   $295,639


                         Three Months Ended June 30, 2002

                               Depreci-   Pre-
                                ation   opening   Restruc-  Property
                                 and      and      turing    trans-
                   Operating   amorti-  start-up   costs    actions,
                    income     zation   expenses  (credit)    net    EBITDA
  Bellagio         $ 70,977  $ 23,154  $   --    $ (3,762)  $ --   $ 90,369
  MGM Grand
   Las Vegas         35,850    20,763      --      (3,211)    --     53,402
  The Mirage         27,221    13,325      --      (3,448)    --     37,098
  Treasure Island    19,315     8,490      --          --     --     27,805
  New York-New York  13,558    10,279      --          --     --     23,837
  MGM Grand Detroit  38,180     3,873      --          --     --     42,053
  Beau Rivage        11,385     5,920      --          --     --     17,305
  Other operations   20,024     6,022      --          --     --     26,046
  Unconsolidated
   affiliate          9,148        --      --          --     --      9,148
                    245,658    91,826      --     (10,421)    --    327,063
  Corporate
   and other        (17,151)    2,622   3,599          --     --    (10,930)

                   $228,507  $ 94,448  $3,599    $(10,421)  $ --   $316,133


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

                        Six Months Ended June 30, 2003

                              Depreci-   Pre-
                               ation    opening           Property
                                and       and    Restruc-   trans-
                   Operating   amorti-  start-up  turing   actions,
                    income     zation   expenses   costs     net    EBITDA
  Bellagio         $106,548  $ 55,015  $    --   $  --    $  105   $161,668
  MGM Grand
   Las Vegas         55,218    40,728      891      25     8,479    105,341
  The Mirage         54,825    24,767       --     300      (145)    79,747
  Treasure Island    32,478    16,819       --     178      (133)    49,342
  New York-New York  34,318    11,888    2,067      --        24     48,297
  MGM Grand Detroit  58,677    17,124      300      --       456     76,557
  Beau Rivage        24,173     9,403       --      --     1,021     34,597
  Other operations   14,311    11,640       --      --       500     26,451
  Unconsolidated
   affiliate         19,336        --       --      --        --     19,336
                    399,884   187,384    3,258     503    10,307    601,336
  Corporate
   and other        (63,916)   16,070   18,185     650       243    (28,768)

                   $335,968  $203,454  $21,443  $1,153   $10,550   $572,568


                           Six Months Ended June 30, 2002

                               Depreci-   Pre-
                                ation   opening   Restruc-  Property
                                 and      and      turing    trans-
                   Operating   amorti-  start-up   costs    actions,
                    income     zation   expenses  (credit)    net    EBITDA
  Bellagio         $134,323  $ 46,453  $   --    $ (3,762)  $ --   $177,014
  MGM Grand
   Las Vegas         68,943    43,031      --      (3,211)    --    108,763
  The Mirage         54,574    25,976      --      (3,448)    --     77,102
  Treasure Island    36,531    16,870      --          --     --     53,401
  New York-New York  21,979    21,477      --          --     --     43,456
  MGM Grand Detroit  78,515     9,664      --          --     --     88,179
  Beau Rivage        20,747    12,102      --          --     --     32,849
  Other operations   29,602    11,916      --          --     --     41,518
  Unconsolidated
   affiliate         18,373        --      --          --     --     18,373
                    463,587   187,489      --     (10,421)    --    640,655
  Corporate
   and other        (32,966)    6,663   4,738          --     --    (21,565)

                   $430,621  $194,152  $4,738    $(10,421)  $ --   $619,090



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

                           Three Months Ended           Six Months Ended
                         June 30,      June 30,       June 30,     June 30,
                           2003       2002           2003         2002
  Bellagio             $  260,176    $  248,437   $   500,540  $    492,885
  MGM Grand Las Vegas     180,333       181,556       364,476       366,543
  The Mirage              145,268       139,852       295,375       280,249
  Treasure Island          86,951        89,907       176,893       176,508
  New York-New York        59,762        55,611       121,673       105,933
  MGM Grand Detroit       102,478        98,923       197,247       202,542
  Beau Rivage              76,862        74,905       147,273       146,807
  Other operations         73,514        81,733       142,111       149,462
                       $  985,344    $  970,924   $ 1,945,588  $  1,920,929



                       MGM MIRAGE AND SUBSIDIARIES
                   SUPPLEMENTAL DATA - HOTEL STATISTICS
                               (Unaudited)

                            Three Months Ended         Six Months Ended
                          June 30,     June 30,       June 30,    June 30,
                            2003         2002           2003        2002
  Bellagio
    Occupancy %            96.3%         95.4%        94.5%         94.6%
    Average daily rate
     (ADR)                  $229          $226         $234          $221
    Revenue per available
     room (REVPAR)          $221          $215         $221          $209

  MGM Grand Las Vegas
    Occupancy %            94.9%         93.8%        93.8%         92.0%
    Average daily rate
     (ADR)                  $114          $114         $117          $113
    Revenue per available
     room (REVPAR)          $109          $107         $110          $104

  The Mirage
    Occupancy %            96.9%         97.1%        94.7%         95.2%
    Average daily rate
     (ADR)                  $134          $140         $141          $139
    Revenue per available
     room (REVPAR)          $130          $136         $134          $133

  Treasure Island
    Occupancy %            98.2%         97.7%        97.1%         97.1%
    Average daily rate
     (ADR)                   $99          $102         $104          $100
    Revenue per available
     room (REVPAR)           $97          $100         $101           $98

  New York-New York
    Occupancy %            99.5%         96.0%        99.2%         95.5%
    Average daily rate
     (ADR)                   $95           $96          $98           $93
    Revenue per available
     room (REVPAR)           $94           $92          $97           $89

  Beau Rivage
    Occupancy %            94.7%         95.2%        92.9%         93.4%
    Average daily rate
     (ADR)                   $98           $99          $93           $90
    Revenue per available
     room (REVPAR)           $93           $94          $86           $84

  Other operations
    Occupancy %            68.6%         65.3%        68.5%         66.5%
    Average daily rate
     (ADR)                   $44           $43          $44           $43
    Revenue per available
     room (REVPAR)           $30           $28          $30           $29



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

                                  ASSETS

                                       June 30,          December 31,
                                         2003                2002

  Current assets:
     Cash and cash equivalents    $      130,724      $      211,234
     Accounts receivable, net            131,091             139,935
     Inventories                          61,995              68,001
     Deferred income taxes                51,937              84,348
     Prepaid expenses and other           69,808              86,311
     Assets held for sale                219,646                  --
           Total current assets          665,201             589,829

  Property and equipment, net          8,579,833           8,762,445

  Other assets:
     Investment in
      unconsolidated
      affiliates                         710,559             710,802
     Goodwill and other
      intangible assets, net             256,704             256,108
     Deposits and other assets,
      net                                198,874             185,801
           Total other assets          1,166,137           1,152,711
                                  $   10,411,171      $   10,504,985


                   LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
     Accounts payable             $       80,444      $       69,959
     Income taxes payable                  1,602                 637
     Current portion of
      long-term debt                       8,025               6,956
     Accrued interest on
      long-term debt                      80,580              80,310
     Other accrued liabilities           553,762             592,206
     Liabilities related to
      assets held for sale                24,204                  --
           Total current
            liabilities                  748,617             750,068

  Deferred income taxes                1,747,060           1,769,431
  Long-term debt                       5,116,344           5,213,778
  Other long-term obligations            110,112             107,564
  Stockholders' equity:
     Common stock ($.01 par value:
      authorized 300,000,000 shares,
      issued 166,471,784 and
      166,393,025 shares and
      outstanding 151,218,384
      and 154,574,225 shares)              1,665               1,664
     Capital in excess of
      par value                        2,127,579           2,125,626
     Deferred compensation               (23,217)            (27,034)
     Treasury stock, at cost
      (15,253,400 and
       11,818,800 shares)               (408,196)           (317,432)
     Retained earnings                   994,959             890,206
     Other comprehensive loss             (3,752)             (8,886)
           Total stockholders'
            equity                     2,689,038           2,664,144
                                  $   10,411,171      $   10,504,985

SOURCE: MGM MIRAGE

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

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