MGM MIRAGE Reports Record Second Quarter Results

August 03, 2006
Same-Store Cash Flow Growth and Increased Operating Margins Highlight Results
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported its second quarter 2006 financial results, achieving record second quarter revenues and earnings. The Company continues to drive increased revenues as a result of strategic capital investments in existing resorts. Operating margins increased and earnings benefited from a full quarter of results from the Mandalay Resort Group ("Mandalay") properties versus 66 days of results in the prior year. Highlighting the Company's operating results was a 5% increase in same-store(1) gaming revenues and an all-time record performance at Bellagio, with Property EBITDA(2) of $131 million in the second quarter.

The Company reported GAAP (generally accepted accounting principles) diluted earnings per share of $0.50 for the quarter, breaking the previous second quarter record of $0.48 per share. This also sets an all-time company record for any quarter.

The Company's strong earnings result is despite the impacts of adopting Statement of Financial Accounting Standards (SFAS) 123® on January 1, 2006, and the continued closure of Beau Rivage. Offsetting these items was the recognition of profits from sales of a portion of the condominium units in Tower 1 at The Signature at MGM Grand.

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

   Three months ended June 30,                         2006           2005
   ---------------------------                       --------       --------
  Profits from The Signature at MGM Grand            $0.06         $  --
  Incremental stock compensation -
   adoption of SFAS 123®                           (0.04)           --
  Beau Rivage operating income                          --          0.04
  Preopening and start-up expenses                   (0.03)        (0.01)
  Property transactions, net                         (0.03)           --
  Tax adjustments                                       --          0.03



The 5% increase in gaming revenue resulted primarily from solid slots performance, strong high-end table games volumes and a higher table games win percentage. Non-gaming revenue was also strong, with same-store REVPAR (revenue per available room) at the Company's Las Vegas Strip resorts increasing 3% for the quarter. Property EBITDA increased 15% to $645 million in the 2006 quarter, and on a same-store basis, Property EBITDA was up 13%.

"We continue to provide guests with the most desirable resort and entertainment experiences in the markets we serve, and that has been the cornerstone of our strong financial performance," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "Our future developments will only serve to enhance our portfolio and further solidify our competitive position."

Net revenue increased 9% to $1.9 billion for the quarter. Same-store net revenue was $1.1 billion for the second quarter, up 4% over 2005 and an all-time second quarter record for the Company. This revenue growth is impressive against a strong 11% prior year increase in net revenues. Gaming revenue was up 5% overall, and included strong slots performances at several properties, particularly MGM Grand Las Vegas, MGM Grand Detroit and TI. Overall, slots revenue increased 4% on a same-store basis. Baccarat volume was particularly impressive as well, up 19% on a same-store basis. Table games hold percentages were within the normal 18-22% range in both periods, and was near the high end of the range in the current year versus the middle of the range in 2005. Bellagio was the primary beneficiary of the improved hold percentage.

Same-store hotel revenue increased 2%, as the Company reported its twelfth consecutive quarter of year-over-year REVPAR growth. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts on a same-store and pro forma (including Mandalay for both periods) basis:

                                                      Three Months Ended
                                                   ------------------------
                                                   June 30,        June 30,
                                                     2006            2005
                                                   --------        --------
  Same-store basis:
  Occupancy %                                          97%            97%
  Average Daily Rate (ADR)                            $177           $172
  Revenue per Available Room (REVPAR)                 $172           $167

  Pro forma basis:
  Occupancy %                                          97%            96%
  Average Daily Rate (ADR)                            $154           $149
  Revenue per Available Room (REVPAR)                 $148           $143



The 3% increase in same-store Las Vegas Strip REVPAR comes on top of a 15% year-over-year increase in the 2005 second quarter. The Company continues to drive increased occupancy at Mandalay's Las Vegas Strip resorts with combined occupancy of 96% in the 2006 quarter versus 95% in 2005.

Revenue growth carried through to the profit line, as the Company was able to increase its margins, leading to increases in operating income, EBITDA and Property EBITDA. The Company's operating income increased 13% to $428 million, and the operating margin was 23% in the current quarter versus 22% in the 2005 quarter. Operating income was negatively impacted by the $16 million of stock compensation expense in the quarter and larger amounts of property transactions, restructuring and preopening expenses -- $28 million in 2006 versus $6 million in 2005. Operating income was positively impacted by the profit recognition on Tower 1 of The Signature at MGM Grand.

Property EBITDA was $645 million, and on a same-store basis Property EBITDA was $406 million, a 13% increase over the 2005 second quarter. Same-store Property EBITDA was also impacted by the larger amount of property transactions and preopening expenses and the profit recognition on Tower 1 of The Signature at MGM Grand. Excluding these differences, same-store Property EBITDA would have increased 8%. The same-store Property EBITDA margin was 36%, a significant increase from 33% in the prior year. Adjusting for the items noted above, the current year Property EBITDA margin would have been 35%.

Detailed Discussion of Certain Charges

In the second quarter of 2006, net property transactions of $13 million largely related to the write-off of assets in connection with expansion projects at MGM Grand Las Vegas and Mandalay Bay and the write-off of Luxor's investment in the Hairspray show. In the 2005 period, net property transactions totaled $2 million.

Preopening and start-up expenses of $15 million in 2006 related primarily to The Signature at MGM Grand, the Love show at The Mirage, Project CityCenter, and our share of preopening related to the Borgata expansion, which opened on June 30, 2006. Preopening and start-up expenses were $4 million in the 2005 quarter, and related to several projects at MGM Grand Las Vegas, including The Signature at MGM Grand, and MGM Grand Macau.

Earnings per share for the 2006 second quarter include the impact of implementing SFAS 123®. The Company classified the incremental expense of $16 million as a result of implementing the standard as follows:

                                                     2006
  For the three months ended June 30,            (In thousands)
  -----------------------------------            --------------
  Casino                                            $ 3,297
  Other operating departments                         1,605
  General and administrative                          4,777
  Corporate expense and other                         6,506
                                                 --------------
                                                    $16,185
                                                 ==============


                            Financial Position

Second quarter capital investments totaled $449 million, which included $157 million for Project CityCenter, $75 million for the permanent MGM Grand Detroit hotel and casino, $109 million for rebuilding efforts at Beau Rivage and $23 million of additional investments in MGM Grand Macau. Remaining capital expenditures of $85 million included spending on the new theatre and new restaurants at The Mirage, new amenities at Mandalay Bay, and other routine capital expenditures.

During the second quarter, the Company received an additional $113 million in recoveries from its insurers related to Hurricane Katrina's impact on Beau Rivage, bringing total recoveries to $163 million.

Also during the second quarter, the Company repurchased 2.5 million shares of its common stock for $103 million. In April, the Company issued $750 million of long-term, fixed rate debt at rates below 7%, which it used to reduce the outstanding balance of its senior credit facility. At June 30, 2006, the Company had $2.5 billion of available borrowings under its senior credit facility.

"Our development projects continue to take shape, and we are very focused on ensuring that these projects generate strong immediate returns on investment," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "We are also maintaining a very strong balance sheet and look forward to being able to finance future development initiatives from operating cash flow and our superior access to low-cost debt financing."

Outlook

"We are once again expecting solid financial results in the third quarter, indicative of continued operating strength across our portfolio of resorts. We are estimating a mid-single digit increase in Property EBITDA, with an estimate of GAAP diluted EPS of approximately $0.40 per share in the third quarter of 2006, compared to $0.31 per share in the prior year," Mr. Murren said. The Company's EPS estimate incorporates the impact of the following significant items (EPS impact shown, net of tax, per diluted share; negative amounts represent charges to income):

                                                      2006            2005
  Three months ended September  30,                 Estimate         Actual
  ---------------------------------                ----------       --------
  Profits from The Signature at MGM Grand            $0.06           $  --
  Incremental stock compensation -
   adoption of SFAS 123®                           (0.04)             --
  Preopening, property transactions and other        (0.02)          (0.06)
  Tax adjustments                                       --           (0.01)



MGM MIRAGE will hold a conference call to discuss its second quarter 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). Until August 17, 2006, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 2977364. A complete replay of the call will also be made available at www.mgmmirage.com. Supplemental detailed earnings information will also be available on the Company's website.

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

                              *     *      *

MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected hotel and gaming companies, owns and operates 23 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE has also announced plans to develop Project CityCenter, a multi-billion dollar mixed-use urban development project in the heart of Las Vegas and has a 50% interest in the MGM Grand Macau, a development project in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com/.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the company's public filings with the Securities and Exchange Commission.

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

                                Three Months Ended      Six Months Ended
                               --------------------   --------------------
                               June 30,    June 30,    June 30,    June 30,
                                 2006       2005        2006        2005
                             ----------- ----------- ----------- -----------
  Revenues:
    Casino                   $  796,373  $  764,378  $1,643,338  $1,379,191
    Rooms                       524,047     455,761   1,044,297     729,815
    Food and beverage           387,527     352,184     774,266     595,662
    Entertainment               105,457     115,711     205,110     203,858
    Retail                       72,336      69,463     138,903     114,342
    Other                       133,445     106,973     256,873     167,808
                             ----------- ----------- ----------- -----------
                              2,019,185   1,864,470   4,062,787   3,190,676
    Less: Promotional
     allowances                (152,002)   (148,514)   (317,071)   (270,585)
                             ----------- ----------- ----------- -----------
                              1,867,183   1,715,956   3,745,716   2,920,091
                             ----------- ----------- ----------- -----------
  Expenses:
    Casino                      412,710     389,767     857,789     700,556
    Rooms                       141,484     125,405     278,611     194,884
    Food and beverage           233,585     220,466     460,381     354,777
    Entertainment                76,740      84,801     150,270     144,866
    Retail                       47,391      45,233      92,887      74,817
    Other                        76,600      64,517     145,904     103,982
    General and administrative  276,602     249,713     546,606     408,077
    Corporate expense            38,579      31,651      75,231      58,442
    Preopening and start-up
     expenses                    15,044       3,897      21,225       6,421
    Restructuring costs
     (credit)                       231          (4)      1,035         (70)
    Property transactions, net   12,575       1,793      36,044       5,996
    Depreciation and
     amortization               164,984     151,673     320,257     262,168
                             ----------- ----------- ----------- -----------
                              1,496,525   1,368,912   2,986,240   2,314,916
                             ----------- ----------- ----------- -----------

  Income from unconsolidated
   affiliates                    57,081      30,885      92,635      65,930
                             ----------- ----------- ----------- -----------

  Operating income              427,739     377,929     852,111     671,105
                             ----------- ----------- ----------- -----------

  Non-operating income
   (expense):
    Interest income               3,027       5,319       5,772       7,016
    Interest expense, net      (195,345)   (167,348)   (392,731)   (268,816)
    Non-operating items from
     unconsolidated affiliates   (3,341)     (4,404)     (6,936)     (7,191)
    Other, net                   (3,333)     (1,781)     (6,377)    (17,472)
                             ----------- ----------- ----------- -----------
                               (198,992)   (168,214)   (400,272)   (286,463)
                             ----------- ----------- ----------- -----------

  Income before income taxes    228,747     209,715     451,839     384,642
    Provision for income taxes  (82,353)    (68,547)   (161,408)   (132,395)
                             ----------- ----------- ----------- -----------

  Net income                   $146,394    $141,168    $290,431    $252,247
                             =========== =========== =========== ===========


  Per share of common stock:
    Basic:
    Net income per share          $0.51       $0.49       $1.02       $0.89
                             =========== =========== =========== ===========

    Weighted average shares
     outstanding                284,285     285,546     284,239     284,031
                             =========== =========== =========== ===========

    Diluted:
    Net income per share          $0.50       $0.48       $0.99       $0.85
                             =========== =========== =========== ===========

    Weighted average shares
     outstanding                292,962     296,725     292,868     295,685
                             =========== =========== =========== ===========


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

                              Three Months Ended      Six Months Ended
                             --------------------   --------------------
                             June 30,    June 30,    June 30,    June 30,
                               2006        2005        2006        2005
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $1,556,387  $1,363,856  $3,127,991  $2,314,084
  Other Nevada                158,325     129,141     309,289     189,872
  MGM Grand Detroit           113,908     109,702     229,001     223,402
  Mississippi                  38,563     113,257      79,435     192,733
                           ----------- ----------- ----------- -----------
                           $1,867,183  $1,715,956  $3,745,716  $2,920,091
                           =========== =========== =========== ===========


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

                              Three Months Ended      Six Months Ended
                             --------------------   --------------------
                             June 30,    June 30,    June 30,    June 30,
                               2006        2005        2006        2005
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $  518,115  $  440,719  $1,041,496  $  768,000
  Other Nevada                 24,926      21,680      49,785      30,739
  MGM Grand Detroit            38,499      38,756      75,599      77,636
  Mississippi                   8,031      31,419      17,390      52,040
  Unconsolidated resorts       55,144      28,547      89,340      63,523
                           ----------- ----------- ----------- -----------
                           $  644,715  $  561,121  $1,273,610  $  991,938
                           =========== =========== =========== ===========


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

                       Three Months Ended June 30, 2006

                           Preopening   Restruc-    Property
                          and start-up   turing   transactions,
                            expenses     costs         net        Total
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $   11,818  $      231  $    9,073  $   21,122
  Other Nevada                     --          --        (131)       (131)
  MGM Grand Detroit               684          --           3         687
  Mississippi                      --          --          13          13
  Unconsolidated resorts        2,424          --          --       2,424
                           ----------- ----------- ----------- -----------
                               14,926         231       8,958      24,115
  Corporate and other             118          --       3,617       3,735
                           ----------- ----------- ----------- -----------
                           $   15,044  $      231  $   12,575  $   27,850
                           =========== =========== =========== ===========


                       Three Months Ended June 30, 2005

                                        Restruc-
                           Preopening    turing     Property
                          and start-up   costs    transactions,
                            expenses    (credit)       net        Total
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $    1,497  $       (4) $    1,652  $    3,145
  Other Nevada                     --          --          (2)         (2)
  MGM Grand Detroit                --          --         302         302
  Mississippi                      62          --         (27)         35
  Unconsolidated resorts        2,338          --          --       2,338
                           ----------- ----------- ----------- -----------
                                3,897          (4)      1,925       5,818
  Corporate and other              --          --        (132)       (132)
                           ----------- ----------- ----------- -----------
                           $    3,897  $       (4) $    1,793  $    5,686
                           =========== =========== =========== ===========


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

                        Six Months Ended June 30, 2006


                           Preopening   Restruc-    Property
                          and start-up   turing   transactions,
                            expenses     costs         net        Total
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $   15,026  $    1,035  $   32,566  $   48,627
  Other Nevada                     --          --        (150)       (150)
  MGM Grand Detroit             1,277          --           1       1,278
  Mississippi                      --          --          10          10
  Unconsolidated resorts        4,645          --          --       4,645
                           ----------- ----------- ----------- -----------
                               20,948       1,035      32,427      54,410
  Corporate and other             277          --       3,617       3,894
                           ----------- ----------- ----------- -----------
                           $   21,225  $    1,035  $   36,044  $   58,304
                           =========== =========== =========== ===========


                       Six Months Ended June 30, 2005

                                        Restruc-
                           Preopening    turing     Property
                          and start-up   costs    transactions,
                            expenses    (credit)       net        Total
                           ----------- ----------- ----------- -----------
  Las Vegas Strip          $    3,939  $       (4) $    5,426  $    9,361
  Other Nevada                     --          --         (63)        (63)
  MGM Grand Detroit                --          --         304         304
  Mississippi                      75          --          40         115
  Unconsolidated resorts        2,407          --          --       2,407
                           ----------- ----------- ----------- -----------
                                6,421          (4)      5,707      12,124
  Corporate and other              --         (66)        289         223
                           ----------- ----------- ----------- -----------
                           $    6,421  $      (70)  $   5,996  $   12,347
                           =========== =========== =========== ===========


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

                              Three Months Ended      Six Months Ended
                             --------------------   --------------------
                             June 30,    June 30,    June 30,    June 30,
                               2006        2005        2006        2005
                           ----------- ----------- ----------- -----------

  EBITDA                   $  592,723  $  529,602  $1,172,368  $  933,273
    Depreciation and
     amortization            (164,984)   (151,673)   (320,257)   (262,168)
                           ----------- ----------- ----------- -----------
  Operating income            427,739     377,929     852,111     671,105
                           ----------- ----------- ----------- -----------

  Non-operating income
   (expense):
    Interest expense, net    (195,345)   (167,348)   (392,731)   (268,816)
    Other                      (3,647)       (866)     (7,541)    (17,647)
                           ----------- ----------- ----------- -----------
                             (198,992)   (168,214)   (400,272)   (286,463)
                           ----------- ----------- ----------- -----------

  Income before income
   taxes                      228,747     209,715     451,839     384,642
    Provision for income
     taxes                    (82,353)    (68,547)   (161,408)   (132,395)
                           ----------- ----------- ----------- -----------
  Net income               $  146,394  $  141,168  $  290,431  $  252,247
                           =========== =========== =========== ===========


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

                       Three Months Ended June 30, 2006

                                                   Depreciation
                                       Operating       and
                                        income     amortization   EBITDA
                                      -----------   ----------- -----------
  Las Vegas Strip                     $  380,645    $  137,470  $  518,115
  Other Nevada                            15,309         9,617      24,926
  MGM Grand Detroit                       35,262         3,237      38,499
  Mississippi                              2,534         5,497       8,031
  Unconsolidated resorts                  55,144            --      55,144
                                      -----------   ----------- -----------
                                         488,894       155,821     644,715
  Stock compensation                                               (16,185)
  Corporate and other                                              (35,807)
                                                                -----------
                                                                $  592,723
                                                                ===========


                       Three Months Ended June 30, 2005

                                                   Depreciation
                                       Operating       and
                                        income     amortization   EBITDA
                                      -----------   ----------- -----------
  Las Vegas Strip                     $  318,829    $  121,890  $  440,719
  Other Nevada                            12,542         9,138      21,680
  MGM Grand Detroit                       32,359         6,397      38,756
  Mississippi                             24,104         7,315      31,419
  Unconsolidated resorts                  28,547            --      28,547
                                      -----------   ----------- -----------
                                         416,381       144,740     561,121
  Stock compensation                                                    --
  Corporate and other                                              (31,519)
                                                                -----------
                                                                $  529,602
                                                                ===========


                         Six Months Ended June 30, 2006

                                                   Depreciation
                                       Operating       and
                                        income     amortization   EBITDA
                                      -----------   ----------- -----------
  Las Vegas Strip                     $  775,996    $  265,500  $1,041,496
  Other Nevada                            29,973        19,812      49,785
  MGM Grand Detroit                       69,445         6,154      75,599
  Mississippi                              6,393        10,997      17,390
  Unconsolidated resorts                  89,340            --      89,340
                                      -----------   ----------- -----------
                                         971,147       302,463   1,273,610
  Stock compensation                                               (37,706)
  Corporate and other                                              (63,536)
                                                                -----------
                                                                $1,172,368
                                                                ===========


                         Six Months Ended June 30, 2005

                                                   Depreciation
                                       Operating       and
                                        income     amortization   EBITDA
                                      -----------   ----------- -----------
  Las Vegas Strip                     $  559,958    $  208,042  $  768,000
  Other Nevada                            15,655        15,084      30,739
  MGM Grand Detroit                       64,224        13,412      77,636
  Mississippi                             39,412        12,628      52,040
  Unconsolidated resorts                  63,523            --      63,523
                                      -----------   ----------- -----------
                                         742,772       249,166     991,938
  Stock compensation                                                    --
  Corporate and other                                              (58,665)
                                                                -----------
                                                                $  933,273
                                                                ===========


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


                                              June 30,         December 31,
                                                2006               2005
                                            ------------       ------------
                             ASSETS
  Current assets:
      Cash and cash equivalents             $   294,992        $   377,933
      Accounts receivable, net                  312,932            352,673
      Inventories                               118,144            111,825
      Deferred income taxes                      64,875             65,518
      Prepaid expenses and other                114,918            110,634
                                            ------------       ------------
            Total current assets                905,861          1,018,583
                                            ------------       ------------

  Real estate under development                 115,887                 --

  Property and equipment, net                16,801,647         16,541,651

  Other assets:
      Investments in unconsolidated
       affiliates                             1,053,474            931,154
      Goodwill                                1,309,131          1,314,561
      Other intangible assets, net              375,681            377,479
      Deposits and other assets, net            509,979            515,992
                                            ------------       ------------
            Total other assets                3,248,265          3,139,186
                                            ------------       ------------
                                            $21,071,660        $20,699,420
                                            ============       ============


                     LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                      $   366,812        $   265,601
      Income taxes payable                        8,822            125,503
      Current portion of long-term debt              --                 14
      Accrued interest on long-term debt        236,951            229,930
      Other accrued liabilities                 843,933            913,520
                                            ------------       ------------
            Total current liabilities         1,456,518          1,534,568
                                            ------------       ------------

  Deferred income taxes                       3,345,368          3,378,371
  Long-term debt                             12,604,145         12,355,433
  Other long-term obligations                   200,236            195,976
  Stockholders' equity:
      Common stock ($.01 par value:
       authorized 600,000,000 shares,
       issued 359,215,605 and
       357,262,405 shares and outstanding
       283,250,865 and 285,069,516 shares)        3,592              3,573
      Capital in excess of par value          2,675,169          2,586,587
      Deferred compensation                        (436)            (3,618)
      Treasury stock, at cost
       (75,964,740 and 72,192,889 shares)    (1,490,775)        (1,338,394)
      Retained earnings                       2,278,156          1,987,725
      Accumulated other comprehensive loss         (313)              (801)
                                            ------------       ------------
            Total stockholders' equity        3,465,393          3,235,072
                                            ------------       ------------
                                            $21,071,660        $20,699,420
                                            ============       ============

SOURCE: MGM MIRAGE

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

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