MGM MIRAGE Reports Third Quarter Results

October 21, 2003
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGG) today reported its third quarter 2003 financial results. Adjusted earnings from continuing operations per diluted share ("Adjusted EPS") was $0.36 in the third quarter of 2003 versus $0.52 in the 2002 quarter. Third quarter results were in line with the Company's recently raised guidance for the quarter.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations, preopening and start-up expenses, restructuring costs, property transactions, net and loss on early retirement of debt(1). On a GAAP (Generally Accepted Accounting Principles) basis, diluted earnings per share from continuing operations decreased to $0.29 for the third quarter of 2003 from $0.45 in the 2002 quarter. GAAP diluted EPS, including the results of discontinued operations, was $0.31 in the 2003 period versus $0.43 in 2002.

"Our third quarter performance was satisfying on many fronts, including an increase in demand for resort travel, and increased spending among our visitors. We also saw solid business levels in the key national high-end customer segment," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We expect that the upcoming convention and holiday season will likely provide further data to support the recent positive trends."

                     Third Quarter Company Highlights

   *  Generated net revenues of $990 million, up 4% from 2002;
   *  Borgata, opened on July 3, 2003 generating net revenues of
      $150 million;
   *  Zumanity, the latest production from Cirque du Soleil, opened at
      New York-New York;
   *  Fiamma, Stephen Hanson's award-winning New York restaurant, opened at
      MGM Grand Las Vegas;
   *  Completed the rollout of Players Club, the Company's exclusive player
      rewards program, with the final installation at New York-New York in
      early October;
   *  Invested $153 million of capital in the Company's properties,
      including maintenance and expansion projects;
   *  Repurchased 4.0 million shares of Company common stock for
      $138.5 million in the quarter.
   *  Issued $600 million of 6% Senior Notes due 2009;
   *  Completed the sale of 315 acres of land in North Las Vegas, Nevada,
      near the Company's Shadow Creek golf course, for $55 million in early
      October;
   *  Received Board of Directors authorization to repurchase up to
      $100 million of the Company's public debt securities, and repurchased
      $25 million in the third quarter.

                        Detailed Financial Results

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

                                   Three months ended   Nine months ended
                                      September 30,       September 30,
                                     2003       2002     2003       2002
                                                (In millions)
   Casino revenue, net              $524.1    $519.4   $1,545.6  $1,546.7
   Non-casino revenue, net           465.5     429.5    1,389.6   1,323.1
   Net revenue                       989.6     948.9    2,935.2   2,869.8
   Operating income                  162.7     183.1      498.6     613.7
   Income from continuing
    operations                        43.7      72.9      149.1     253.3
   Discontinued operations, net        3.5      (3.4)       2.9       0.1
   Net income                         47.2      69.6      152.0     253.4

   Property-level EBITDA(2)         $294.4    $303.1     $895.8    $943.7
   EBITDA (after corporate
    expense)(2)                      279.0     292.4      851.5     911.5
   Adjusted Earnings                  54.9      84.0      181.8     253.3


Except where noted, all references in this release to operating results, including statistical information, exclude the results of 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 third quarter increased 4% from the 2002 third quarter. This increase was due to strong volume and pricing for hotel rooms and increased spending by our customers, particularly on non-gaming amenities.

Casino revenue increased by 1% in the 2003 quarter. Table games volume, including baccarat, was up 6% from the prior year's quarter, led by MGM Grand Las Vegas, up 12% over the 2002 quarter. Table games volumes benefited from a strong event calendar, including the Oscar De La Hoya-Shane Mosley fight in September. Table games hold percentages were within a normal range for both periods, but were significantly lower in the current year quarter, especially at Bellagio. Company-wide slot revenue in the quarter was up 6% from 2002. MGM Grand Las Vegas, New York-New York and The Mirage all posted double-digit percentage increases in slot revenues.

Non-casino revenue was up 8% in the quarter. Hotel revenue was up 7%, with higher occupancy of 92% in the third quarter of 2003 versus 89% in 2002, and a higher average daily room rate ("ADR") of $116 versus $112 in 2002. As a result, revenue per available room ("REVPAR") was $107, compared with REVPAR of $99 in 2002. Bellagio's REVPAR was up 10% over 2002, but the resort had approximately 9% fewer rooms available due to the standard room remodel project. MGM Grand Las Vegas and New York-New York also posted double-digit percentage increases in REVPAR, bolstered by recent new amenities added to these resorts.

Food and beverage, entertainment, retail and other revenues were up 9% in the 2003 quarter. These increases resulted primarily from the increases in hotel volumes, as well as the addition of Zumanity and Nine Fine Irishmen Pub at New York-New York, and continued improvement of amenities at other resorts, resulting in higher volumes and pricing.

EBITDA was down 5% for the quarter, and operating income was down 11%. The decrease in EBITDA was primarily the result of the lower hold percentage discussed earlier. Operating income decreased due to those items and higher depreciation expense resulting from enhancements to our resorts, including new slot technology.

Third quarter Adjusted Earnings decreased by 35% compared to 2002 due to the decrease in operating income and higher net interest expense. Net interest expense increased due to the Company's October 2002 decision to suspend development of its wholly-owned Atlantic City development project, which resulted in lower capitalized interest, along with the cessation of interest capitalization on the Company's investment in Borgata, which opened on July 3, 2003.

For the third quarter of 2003, Adjusted Earnings excluded a net $17.1 million ($11.2 million, net of tax) of items. These items included:

   *  Preopening and start-up expenses of $7.3 million ($4.8 million, net of
      tax), including $3.5 million related to the Company's Borgata
      investment, $3.0 million at New York-New York, related to Zumanity,
      Nine Fine Irishmen Pub and the rollout of Players Club, and
      $0.7 million related to Fiamma at MGM Grand Las Vegas;
   *  Net property transactions of $2.6 million ($1.7 million, net of tax),
      including $1.8 million of demolition costs at Bellagio, in preparation
      for the Spa Tower expansion, and MGM Grand Las Vegas, in preparation
      for the new Cirque du Soleil show;
   *  Restructuring costs of $4.0 million ($2.6 million, net of tax),
      including $3.3 million for the termination of an operating lease at
      MGM Grand Las Vegas in order to facilitate the new monorail entrance,
      and $0.7 million of severance at MGM Grand Las Vegas and
      New York-New York related to a restructuring of casino staffing.
   *  Loss on early retirement of debt of $3.2 million ($2.1 million, net of
      tax), classified in "Other, net."

In the third quarter of 2002, items excluded in the determination of Adjusted Earnings included $4.0 million ($2.6 million, net of tax) of preopening and start-up expenses, primarily related to Borgata and Players Club, and property transactions, net of $12.6 million ($8.2 million, net of tax) related to the revised Detroit Development Agreement and damage sustained during Hurricane Isidore at Beau Rivage.

Income (loss) from discontinued operations includes the results of MGM MIRAGE Online and the Golden Nugget Las Vegas and Golden Nugget Laughlin resorts. Pretax income from discontinued operations was $5 million, including the allocation of $2 million of interest expense, in the 2003 third quarter compared to a loss of $4 million, including $2 million of allocated interest, in the 2002 period.

Financial Position

Third quarter capital investments of $153 million included required contributions to Borgata of $18 million, $44 million for the Bellagio expansion and standard room remodel, $33 million for construction of the two new theatres for Cirque du Soleil at New York-New York and MGM Grand Las Vegas, $5 million related to continued implementation of new slot technology, and other routine capital expenditures.

In order to enhance its financial flexibility and to take advantage of historically low interest rates, the Company issued $600 million of 6% Senior Notes due 2009 in September 2003. The proceeds were used to reduce the outstanding balance of the Company's existing revolving credit facilities.

"Our financial position is now optimized to allow us to continue our investment program in our market leading resorts while positioning ourselves to grow domestically and internationally," said MGM MIRAGE President, CFO and Treasurer Jim Murren. "Much of our recent capital spending has been focused on enhancing and expanding our Las Vegas resorts, an approach which continues to be reinforced by recent market results," Mr. Murren said.

As of September 30, 2003, the Company had approximately $1.2 billion of available borrowings under its senior credit facilities, with no public debt maturities until 2005.

Outlook

"We are comfortable with the current earnings estimate consensus of 28 cents for the fourth quarter, as reported on First Call on October 20, 2003," Mr. Murren said. "Of course, as always, a significant factor in our fourth quarter results will be the holiday period at the end of the quarter." The Company's estimates include the operating impact from the closure of the Siegfried and Roy show, which is estimated to be roughly $0.01 per share for the quarter. The Company will also incur a pretax charge of approximately $4 million as a result of the closure of the show, which will be excluded from Adjusted EPS. This charge reflects both restructuring costs, primarily severance for the MGM MIRAGE employees affected by the show's closure, and a write-down of certain theatre assets. Also excluded from Adjusted EPS will be the approximate $37 million pretax gain on the previously announced sale of North Las Vegas land.

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 1-800-526-8531 (domestic) or 1-706-634-6528 (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 and other non-operating income (expense), 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          Nine Months Ended
                     September 30, September 30, September 30, September 30,
                        2003          2002          2003          2002
  Revenues:
    Casino            $   524,097  $   519,442   $  1,545,607  $  1,546,726
    Rooms                 207,033      194,131        634,041       602,392
    Food and beverage     192,514      173,962        573,341       532,889
    Entertainment,
     retail and other     172,706      160,821        492,092       485,281
                        1,096,350    1,048,356      3,245,081     3,167,288
    Less: Promotional
     allowances           106,705       99,436        309,848       297,439
                          989,645      948,920      2,935,233     2,869,849
  Expenses:
    Casino                267,227      253,226        787,549       764,592
    Rooms                  60,090       52,560        177,476       156,244
    Food and beverage     112,691       99,698        326,564       289,023
    Entertainment,
     retail and other     114,345      104,034        324,071       302,521
    Provision for
     doubtful accounts      3,847       (2,411)        18,267        20,267
    General and
     administrative       155,037      145,481        442,898       418,588
    Corporate expense      15,456       10,620         44,224        32,185
    Preopening and
     start-up expenses      7,316        3,988         28,759         8,726
    Restructuring costs
     (credit)               4,034           --          5,187       (10,421)
    Property
     transactions,
     net                    2,599       12,578         13,149        12,578
    Depreciation and
     amortization         102,341       92,755        305,795       286,907
                          844,983      772,529      2,473,939     2,281,210

  Income from
   unconsolidated
   affiliates              18,018        6,720         37,354        25,093

  Operating income        162,680      183,111        498,648       613,732

  Non-operating income
   (expense):
    Interest income           847        1,037          3,383         3,417
    Interest expense,
     net                  (86,079)     (69,173)      (250,738)     (206,561)
    Other nonoperating-
     unconsolidated
     affiliates            (3,998)        (420)        (4,222)       (1,211)
    Other, net             (5,670)      (2,567)       (10,463)       (7,510)
                          (94,900)     (71,123)      (262,040)     (211,865)

  Income before income
   taxes and
   discontinued
   operations              67,780      111,988        236,608       401,867
    Provision for
     income taxes         (24,093)     (39,051)       (87,521)     (148,553)
  Income from continuing
   operations              43,687       72,937        149,087       253,314

  Discontinued
   operations
    Income (loss) from
     discontinued
     operations,
     including loss on
     disposal of $7,357
     (nine months 2003)     5,353       (4,281)           427         1,864
    Benefit (provision)
     for income taxes      (1,831)         904          2,448        (1,787)
                            3,522       (3,377)         2,875            77

  Net income            $  47,209  $    69,560   $    151,962    $  253,391

  Per share of
   common stock:
    Basic:
    Income from
     continuing
     operations         $    0.29  $      0.46   $       0.99    $     1.60
    Discontinued
     operations              0.03        (0.02)          0.02            --
    Net income
     per share          $    0.32  $      0.44   $       1.01    $     1.60

    Weighted average
     shares
     outstanding          149,051      158,497        150,616       158,626

    Diluted:
    Income from
     continuing
     operations         $    0.29  $      0.45   $       0.97    $     1.58
    Discontinued
     operations              0.02        (0.02)          0.02            --
    Net income
     per share          $    0.31  $      0.43   $       0.99    $     1.58

    Weighted average
     shares
     outstanding          152,740      160,575        152,994       160,881


                         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             Nine Months Ended
                  September 30,  September 30,  September 30,  September 30,
                     2003           2002           2003           2002

  Income from
   continuing
   operations      $  43,687      $  72,937       $ 149,087      $ 253,314
  Preopening and
   start-up
   expenses, net       4,756          2,592          18,693          5,672
  Restructuring
   costs (credit),
   net                 2,622             --           3,372         (6,774)
  Property
   transactions,
   net                 1,689          8,176           8,547          8,176
  Management
   agreement
   termination
   fee, net               --             --              --         (7,419)
  Loss on debt
   retirements,
   net                 2,109            328           2,109            328
  Adjusted
   earnings        $  54,863      $  84,033       $ 181,808      $ 253,297

  Per diluted
   share of
   common stock:
     Income from
      continuing
      operations   $   0.29       $    0.45       $    0.97      $    1.58
     Preopening
      and start-up
      expenses, net    0.03            0.02            0.13           0.03
     Restructuring
      costs (credit),
      net              0.02              --            0.02          (0.04)
     Property
      transactions,
      net              0.01            0.05            0.06           0.05
     Management
      agreement
      termination
      fee, net           --              --              --          (0.05)
     Loss on debt
      retirements,
      net              0.01              --            0.01             --
     Adjusted EPS  $   0.36       $    0.52       $    1.19      $    1.57

     Weighted
      average
      diluted
      shares
      outstanding   152,740         160,575         152,994        160,881


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

                         Three Months Ended          Nine Months Ended
                     September 30, September 30, September 30, September 30,
                         2003          2002          2003          2002

  Bellagio           $  233,453    $  245,819   $   733,993   $   738,704
  MGM Grand Las Vegas   194,502       176,703       558,978       543,246
  The Mirage            148,481       139,988       443,856       420,237
  Treasure Island        87,243        86,159       264,136       262,667
  New York-New York      72,052        55,901       193,725       161,834
  MGM Grand Detroit      97,752        93,392       294,999       295,934
  Beau Rivage            79,081        77,028       226,354       223,835
  Other operations       77,081        73,930       219,192       223,392
                     $  989,645    $  948,920   $ 2,935,233   $ 2,869,849


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

                         Three Months Ended          Nine Months Ended
                     September 30, September 30, September 30, September 30,
                         2003          2002          2003          2002

  Bellagio           $   62,004    $   91,305   $   223,672   $   268,319
  MGM Grand Las Vegas    58,729        53,470       164,070       162,233
  The Mirage             40,811        43,083       120,558       120,185
  Treasure Island        18,981        21,617        68,323        75,018
  New York-New York      26,014        21,679        74,311        65,135
  MGM Grand Detroit      35,335        35,132       111,892       123,311
  Beau Rivage            20,206        16,445        54,803        49,294
  Other operations       14,328        13,601        40,779        55,119
  Income from
   unconsolidated
   affiliates            18,018         6,720        37,354        25,093
                     $  294,426    $  303,052   $   895,762   $   943,707


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

                    Three Months Ended September 30, 2003

                               Depreci-   Pre-
                                ation   opening            Property
                                 and      and     Restruc-  trans-
                   Operating   amorti-  start-up   turing  actions,
                     income    zation   expenses   costs     net    EBITDA
  Bellagio       $   36,608  $  24,613  $    -- $    --  $   783 $  62,004
  MGM Grand
   Las Vegas         30,414     22,573      675   3,856    1,211    58,729
  The Mirage         27,928     12,366       --      --      517    40,811
  Treasure Island    10,449      8,521       --      --       11    18,981
  New York-New York  17,006      6,534    2,320     178      (24)   26,014
  MGM Grand
   Detroit           27,441      7,672      150      --       72    35,335
  Beau Rivage        14,815      5,237       --      --      154    20,206
  Other operations    8,840      5,614       --      --     (126)   14,328
  Unconsolidated
   affiliates        14,593         --    3,425      --       --    18,018
                    188,094     93,130    6,570   4,034    2,598   294,426
  Corporate
   and other        (25,414)     9,211      746      --        1   (15,456)
                 $  162,680  $ 102,341  $ 7,316 $ 4,034  $ 2,599 $ 278,970


                    Three Months Ended September 30, 2002

                               Depreci-   Pre-
                                ation   opening            Property
                                 and      and     Restruc-  trans-
                   Operating   amorti-  start-up   turing  actions,
                     income    zation   expenses   costs     net    EBITDA
  Bellagio       $   67,707  $  23,598  $    --  $   --  $    --  $  91,305
  MGM Grand
   Las Vegas         32,910     20,560       --      --       --     53,470
  The Mirage         30,387     12,696       --      --       --     43,083
  Treasure Island    13,046      8,571       --      --       --     21,617
  New York-New York  15,695      5,984       --      --       --     21,679
  MGM Grand
   Detroit           25,437      4,941       --      --    4,754     35,132
  Beau Rivage         2,981      5,640       --      --    7,824     16,445
  Other operations    7,722      5,879       --      --       --     13,601
  Unconsolidated
   affiliates         4,943         --     1,777     --       --      6,720
                    200,828     87,869     1,777     --   12,578    303,052
  Corporate and
   other            (17,717)     4,886     2,211     --       --    (10,620)
                 $  183,111  $  92,755  $  3,988 $   --  $12,578  $ 292,432


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

                     Nine Months Ended September 30, 2003

                               Depreci-   Pre-
                                ation   opening            Property
                                 and      and     Restruc-  trans-
                   Operating   amorti-  start-up   turing  actions,
                     income    zation   expenses   costs     net    EBITDA
  Bellagio       $  143,156  $  79,628  $    -- $    --  $   888 $ 223,672
  MGM Grand
   Las Vegas         85,632     63,301    1,566   3,881    9,690   164,070
  The Mirage         82,753     37,133       --     300      372   120,558
  Treasure Island    42,927     25,340       --     178     (122)   68,323
  New York-New York  51,324     18,422    4,387     178       --    74,311
  MGM Grand
   Detroit           86,118     24,796      450      --      528   111,892
  Beau Rivage        38,988     14,640       --      --    1,175    54,803
  Other operations   23,151     17,254       --      --      374    40,779
  Unconsolidated
   affiliates        18,028         --   19,326      --       --    37,354
                    572,077    280,514   25,729   4,537   12,905   895,762
  Corporate
   and other        (73,429)    25,281    3,030     650      244   (44,224)

                 $  498,648  $ 305,795  $28,759 $ 5,187  $13,149 $ 851,538


                     Nine Months Ended September 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       $  202,030  $  70,051  $  --  $ (3,762) $   --  $ 268,319
  MGM Grand
   Las Vegas        101,853     63,591     --    (3,211)     --    162,233
  The Mirage         84,961     38,672     --    (3,448)     --    120,185
  Treasure Island    49,577     25,441     --        --      --     75,018
  New York-New York  37,674     27,461     --        --      --     65,135
  MGM Grand
   Detroit          103,952     14,605     --        --    4,754   123,311
  Beau Rivage        23,728     17,742     --        --    7,824    49,294
  Other operations   37,324     17,795     --        --      --     55,119
  Unconsolidated
   affiliates        20,769         --   4,324       --      --     25,093
                    661,868    275,358   4,324  (10,421)  12,578   943,707
  Corporate
   and other        (48,136)    11,549   4,402       --      --    (32,185)

                 $  613,732  $ 286,907  $8,726 $(10,421) $12,578 $ 911,522


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

                         Three Months Ended          Nine Months Ended
                     September 30, September 30, September 30, September 30,
                         2003          2002          2003          2002
  Bellagio
    Occupancy %             96.7%        93.1%         95.2%         94.1%
    Average daily
     rate (ADR)           $  219       $  206        $  229        $  216
    Revenue per available
     room (REVPAR)        $  212       $  192        $  218        $  203

  MGM Grand Las Vegas
    Occupancy %             95.6%        92.8%         94.4%         92.3%
    Average daily
     rate (ADR)           $  112       $  103        $  115        $  109
    Revenue per available
     room (REVPAR)        $  107       $   95        $  109        $  101

  The Mirage
    Occupancy %             98.2%        94.7%         95.9%         95.0%
    Average daily
     rate (ADR)           $  129       $  126        $  137        $  135
    Revenue per available
     room (REVPAR)        $  126       $  119        $  131        $  128

  Treasure Island
    Occupancy %             97.8%        94.3%         97.3%         96.2%
    Average daily
     rate (ADR)           $   98       $   96        $  102        $   99
    Revenue per available
     room (REVPAR)        $   96       $   91        $  100        $   95

  New York-New York
    Occupancy %             98.4%        96.6%         98.5%         95.4%
    Average daily
     rate (ADR)           $   95       $   86        $   97        $   91
    Revenue per available
     room (REVPAR)        $   93       $   84        $   95        $   86

  Beau Rivage
    Occupancy %             94.0%        89.8%         93.3%         92.2%
    Average daily
     rate (ADR)           $   97       $   99        $   94        $   93
    Revenue per available
     room (REVPAR)        $   91       $   89        $   88        $   86

  Other operations
    Occupancy %             69.4%        65.0%         68.8%         66.0%
    Average daily
     rate (ADR)           $   44       $   44        $   44        $   43
    Revenue per available
     room (REVPAR)        $   31       $   28        $   30        $   29


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

                                              September 30,    December 31,
                                                  2003            2002

                                   ASSETS
  Current assets:
    Cash and cash equivalents               $     153,806   $     211,234
    Accounts receivable, net                      141,295         139,935
    Inventories                                    64,407          68,001
    Deferred income taxes                          57,943          84,348
    Prepaid expenses and other                     88,172          86,311
    Assets held for sale                          236,282              --
        Total current assets                      741,905         589,829

  Property and equipment, net                   8,592,190       8,762,445

  Other assets:
    Investments in unconsolidated affiliates      733,129         710,802
    Goodwill and other intangible assets,
     net                                          264,699         256,108
    Deposits and other assets, net                219,727         185,801
        Total other assets                      1,217,555       1,152,711
                                            $  10,551,650   $  10,504,985

                    LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Accounts payable                        $     100,072   $      69,959
    Income taxes payable                           26,559             637
    Current portion of long-term debt               8,151           6,956
    Accrued interest on long-term debt             57,030          80,310
    Other accrued liabilities                     588,074         592,206
    Liabilities related to assets held
     for sale                                      23,427              --
        Total current liabilities                 803,313         750,068

  Deferred income taxes                         1,757,696       1,769,431
  Long-term debt                                5,246,878       5,213,778
  Other long-term obligations                     115,166         107,564
  Stockholders' equity:
    Common stock ($.01 par value: authorized
     300,000,000 shares, issued 167,548,680
     and 166,393,025 shares and outstanding
     148,340,680 and 154,574,225 shares)            1,676           1,664
    Capital in excess of par value              2,153,276       2,125,626
    Deferred compensation                         (21,144)        (27,034)
    Treasury stock, at cost (19,208,000
     and 11,818,800 shares)                      (546,827)       (317,432)
    Retained earnings                           1,042,168         890,206
    Accumulated other comprehensive loss             (552)         (8,886)
        Total stockholders' equity              2,628,597       2,664,144
                                            $  10,551,650   $  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/