MGM MIRAGE Reports Record Third Quarter Results

November 02, 2006
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported its third quarter 2006 financial results, achieving record third quarter revenues and earnings. Diluted earnings per share was $0.54, a 74% increase over the $0.31 per share earned in 2005, driven by strong top-line performance -- 5% increase in net revenues -- and higher operating margins.

  Highlights from the quarter include:

    *  5% increase in gaming revenues, with strong high-end table games
       volume and a solid 5% increase in slots revenue;
    *  3% increase in hotel revenues, led by a 6% increase in Las Vegas
       Strip REVPAR;(1)
    *  Property EBITDA(2) of $637 million, a 19% increase over the prior
       year;
    *  Property EBITDA margins increased to 33% versus 30% in the 2005 third
       quarter;
    *  Beau Rivage, which was open for 33 days in the quarter, earned
       Property EBITDA of $16 million, versus $12 million in the 2005
       quarter, when it was open for two months;(3)

The following table lists 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 September 30,                   2006             2005
  ------------------------------------------------------------------------
  Profits from The Signature at MGM Grand           $0.06              $--
  Incremental stock compensation - adoption
   of SFAS 123®                                   (0.04)              --
  Preopening and start-up expenses                  (0.01)           (0.01)
  Property transactions, net                           --            (0.05)
  Tax adjustments                                    0.02            (0.01)



"The third quarter once again demonstrated our Company's ability to grow organically and generate meaningful increases in cash flow," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "We are extremely pleased with the record performances turned in by several resorts, and especially proud of the recently re-opened Beau Rivage. Our valued employees are excited to be back to work, and we are glad to be a part of the revival of the Gulf Coast."

Net revenue of $1.9 billion is an all-time Company record for the third quarter. Results in most operating areas were consistent with this trend, as strong gaming results were accompanied by higher customer volumes at restaurants and shows and contributions from new amenities such as the Love show and new restaurants at Mirage.

The 5% increase in gaming revenue was led by double-digit increases in slot revenues at several resorts, including Bellagio, MGM Grand Las Vegas, Mandalay Bay, TI, MGM Grand Detroit and Gold Strike Tunica. Baccarat volume was also particularly impressive, up 22%, continuing the trend from the second quarter. Table games hold percentages were near the mid-point of the normal 18-22% range in both periods, though higher in the 2006 period.

Non-gaming results were strong, with new shows and restaurants contributing positively to results and continued strength in room rates. The 6% increase in Las Vegas Strip REVPAR represents the Company's thirteenth consecutive quarter of year-over-year REVPAR growth. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

                                                   Three Months Ended
                                               ---------------------------
                                              September 30,   September 30,
                                                  2006            2005
                                              -------------   -------------
  Occupancy %                                      96%             97%
  Average Daily Rate (ADR)                        $140            $133
  Revenue per Available Room (REVPAR)             $135            $128



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 26% to $428 million, which includes $27 million of profit from closings on the final units of Tower 1 of the Signature at MGM Grand. The operating margin was 22% in the current quarter versus 19% in the 2005 quarter.

Detailed Discussion of Certain Charges

In the third quarter of 2006, the Company incurred minimal property transactions. In the 2005 period, net property transactions of $23 million largely related to the write-off of assets replaced in connection with expansion and remodel projects at Bellagio, Mirage and TI.

Preopening and start-up expenses of $6 million in the 2006 quarter related primarily to CityCenter, MGM Grand Macau, the permanent facility at MGM Grand Detroit and The Signature at MGM Grand. Preopening and start-up expenses in 2005 -- $6 million -- related primarily to CityCenter, as well as new restaurants at MGM Grand Las Vegas and The Signature at MGM Grand.

Positive tax adjustments of $6 million in the 2006 third quarter related to a reduction in reserves required for certain complimentary costs. The IRS had historically challenged the deductibility of certain complimentaries provided to customers, but recent IRS guidance indicated that they would no longer challenge the deductions.

Earnings per share for the 2006 third quarter include the impact of implementing SFAS 123® on January 1, 2006. Under this new standard, the cost of employee stock awards are required to be recognized as an expense. The Company classified the incremental expense of $17 million as a result of implementing the standard as follows:

  Three months ended September 30,                         2006
  -------------------------------------------------------------
                                                  (In thousands)
  Casino                                                 $3,845
  Other operating departments                             1,589
  General and administrative                              4,836
  Corporate expense and other                             7,117
                                                        -------
                                                        $17,387
                                                        =======



                            Financial Position

Third quarter capital investments totaled $610 million, which included $198 million for CityCenter, $70 million for the permanent MGM Grand Detroit hotel and casino, $164 million for rebuilding efforts at Beau Rivage, $45 million for a new corporate aircraft and $31 million of additional investments in MGM Grand Macau. Remaining capital expenditures of $102 million included spending on the new theatre and new restaurants at Mirage, new amenities at Mandalay Bay, and other routine capital expenditures.

During the third quarter of 2006, the Company repurchased 3 million shares of its common stock for $106 million, leaving 8 million shares available under the Company's current authorization. At September 30, 2006, the Company had $2.1 billion of available borrowings under its senior credit facility. Subsequent to quarter-end, the Company announced that it had amended its credit facility. The total capacity remains at $7 billion, the term loan component was increased from $1.5 billion to $2.5 billion, the pricing was reduced and the maturity was extended to October 2011. In addition, the Company has the ability to solicit additional lender commitments to increase the facility's capacity to $8 billion.

"Our financial strength continues to be the foundation for future growth at MGM MIRAGE, and the continued confidence of our stakeholders is proof that our strategies are sound," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "With the amended credit facility and our resorts' success in generating cash flows, we will continue to have financial flexibility for our growth initiatives while still being able to re-invest in our market leading resorts."

Outlook

"We are looking forward to another successful quarter in the fourth quarter, as our resorts continue to attract high quality visitors from all segments. We expect higher Property EBITDA and our fourteenth consecutive quarter of REVPAR growth, resulting in an estimate of GAAP diluted EPS from continuing operations of approximately $0.40 to $0.45 per share in the fourth quarter of 2006, compared to $0.33 per share in the prior year," Mr. Murren said.

The Company expects to recognize approximately $40-45 million of profits in the fourth quarter related to sales of Tower 2 at The Signature at MGM Grand. The Company expects to recognize the remaining profits on Tower 2, approximately $30-35 million, in the first quarter of 2007. In addition, the Company's Laughlin operations -- Colorado Belle and Edgewater -- and the Primm Valley Resorts will be classified as discontinued operations beginning in the fourth quarter as a result of the Company's agreement to sell these properties.

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 December 31,                        estimate    actual
  --------------------------------------------------------------------------
  Profits from The Signature at MGM Grand               $0.09-0.10      $--
  Incremental stock compensation - adoption
   of SFAS 123®                                            (0.03)      --
  Preopening, property transactions and other                (0.02)   (0.03)
  Tax adjustments                                               --     0.01



MGM MIRAGE will hold a conference call to discuss its third quarter earnings results and outlook for the fourth quarter at 11:00 a.m. Eastern Standard 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 November 16, 2006, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 8744175. 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  REVPAR is hotel Revenue per Available Room.

  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.

  3  Beau Rivage earned operating income of $10 million and $5 million in
     the third quarters of 2006 and 2005, respectively, with depreciation
     and amortization of $6 million and $7 million in the corresponding
     periods.

                              *     *      *

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. The Company has entered into agreements to sell its three Primm Valley Resort properties located in Primm, Nevada and its Colorado Belle and Edgewater properties located in Laughlin, Nevada. In addition, the Company has major new developments under construction in Nevada, Michigan and Macau S.A.R. CityCenter is a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip; a new MGM Grand hotel and casino complex is being built in downtown Detroit; and the Company has a 50% interest in MGM Grand Macau, a hotel-casino resort currently under construction 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              Nine Months Ended
                ----------------------------   ----------------------------
                September 30,  September 30,   September 30,  September 30,
                    2006           2005            2006           2005
                ------------   ------------    ------------   ------------
  Revenues:
   Casino        $  844,644     $  805,277      $2,487,982     $2,184,468
   Rooms            491,511        478,462       1,535,808      1,208,277
   Food and
    beverage        387,029        368,186       1,161,295        963,848
   Entertainment    125,702        114,904         330,812        318,762
   Retail            75,384         75,248         214,287        189,590
   Other            142,110        127,291         398,983        295,099
                ------------   ------------    ------------   ------------
                  2,066,380      1,969,368       6,129,167      5,160,044
   Less:
    Promotional
    allowances     (164,405)      (161,125)       (481,476)      (431,710)
                ------------   ------------    ------------   ------------
                  1,901,975      1,808,243       5,647,691      4,728,334
                ------------   ------------    ------------   ------------
  Expenses:
   Casino           426,194        415,236       1,283,983      1,115,792
   Rooms            141,537        143,065         420,148        337,949
   Food and
    beverage        239,078        239,581         699,459        594,358
   Entertainment     91,450         82,839         241,720        227,705
   Retail            48,001         48,475         140,888        123,292
   Other             86,671         76,853         232,575        180,835
   General and
    administrative  302,430        288,728         849,036        696,805
   Corporate
    expense          35,184         32,112         110,415         90,554
   Preopening and
    start-up
    expenses          6,083          6,147          27,308         12,568
   Restructuring
    costs (credit)       --             11           1,035            (59)
   Property
    transactions,
    net                 282         22,637          36,326         28,633
   Depreciation
    and
    amortization    163,536        161,566         483,793        423,734
                ------------   ------------    ------------   ------------
                  1,540,446      1,517,250       4,526,686      3,832,166
                ------------   ------------    ------------   ------------

  Income from
   unconsolidated
   affiliates        66,138         49,006         158,773        114,936
                ------------   ------------    ------------   ------------

  Operating
   income           427,667        339,999       1,279,778      1,011,104
                ------------   ------------    ------------   ------------

  Non-operating
   income
   (expense):
    Interest
     income           2,650          3,156           8,422         10,172
    Interest
     expense,
     net           (193,899)      (193,150)       (586,630)      (461,966)
    Non-operating
     items from
     unconsolidated
     affiliates      (4,627)        (4,344)        (11,563)       (11,535)
    Other, net       (1,654)         1,894          (8,031)       (15,578)
                ------------   ------------    ------------   ------------
                   (197,530)      (192,444)       (597,802)      (478,907)
                ------------   ------------    ------------   ------------

  Income before
   income taxes     230,137        147,555         681,976        532,197
    Provision
     for income
     taxes          (73,875)       (54,345)       (235,283)      (186,740)
                ------------   ------------    ------------   ------------

  Net income     $  156,262     $   93,210      $  446,693     $  345,457
                ============   ============    ============   ============

  Per share of
   common stock:
    Basic:
    Net income
     per share   $     0.55     $     0.33      $     1.58     $     1.21
                ============   ============    ============   ============

    Weighted
     average
     shares
     outstanding    281,836        286,752         283,423        284,938
                ============   ============    ============   ============

    Diluted:
    Net income
     per share   $     0.54     $     0.31      $     1.53     $     1.16
                ============   ============    ============   ============

    Weighted
     average
     shares
     outstanding    289,258        298,885         291,744        296,753
                ============   ============    ============   ============


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

                    Three Months Ended              Nine Months Ended
                ----------------------------   ----------------------------
                September 30,  September 30,   September 30,  September 30,
                    2006           2005            2006           2005
                ------------   ------------    ------------   ------------
  Las Vegas
   Strip         $1,543,101     $1,452,235      $4,671,092     $3,766,319
  Other Nevada      159,745        163,802         469,034        353,674
  MGM Grand
   Detroit          116,141        107,652         345,142        331,054
  Mississippi        82,988         84,554         162,423        277,287
                ------------   ------------    ------------   ------------
                 $1,901,975     $1,808,243      $5,647,691     $4,728,334
                ============   ============    ============   ============


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

                    Three Months Ended              Nine Months Ended
                ----------------------------   ----------------------------
                September 30,  September 30,   September 30,  September 30,
                    2006           2005            2006           2005
                ------------   ------------    ------------   ------------
  Las Vegas
   Strip         $  486,621     $  404,828      $1,528,117     $1,172,828
  Other Nevada       21,971         26,183          71,756         56,922
  MGM Grand
   Detroit           38,421         36,814         114,020        114,450
  Mississippi        25,011         15,416          42,401         67,456
  Unconsolidated
   resorts           64,814         50,436         154,154        113,959
                ------------   ------------    ------------   ------------
                 $  636,838     $  533,677      $1,910,448     $1,525,615
                ============   ============    ============   ============


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

                  Three Months Ended September 30, 2006

                 Preopening
                    and                          Property
                  start-up     Restructuring   transactions,
                  expenses         costs           net           Total
                ------------   ------------    ------------   ------------

  Las Vegas
   Strip         $    3,998     $       --      $       69     $    4,067
  Other Nevada           --             --             (21)           (21)
  MGM Grand
   Detroit              647             --              --            647
  Mississippi            --             --             167            167
  Unconsolidated
   resorts            1,324             --             --           1,324
                ------------   ------------    ------------   ------------
                      5,969             --            215           6,184
  Corporate and
   other                114             --             67             181
                ------------   ------------    ------------   ------------
                 $    6,083     $       --      $     282      $    6,365
                ============   ============    ============   ============


                  Three Months Ended September 30, 2005

                 Preopening
                    and                          Property
                  start-up     Restructuring   transactions,
                  expenses         costs           net           Total
                ------------   ------------    ------------   ------------
  Las Vegas
   Strip         $    7,313     $       11      $   22,361     $   29,685
  Other Nevada           --             --              --             --
  MGM Grand
   Detroit                4             --              --              4
  Mississippi           260             --             276            536
  Unconsolidated
   resorts           (1,430)            --              --         (1,430)
                ------------   ------------    ------------   ------------
                      6,147             11          22,637         28,795
  Corporate and
   other                 --             --              --             --
                ------------   ------------    ------------   ------------
                 $    6,147     $       11      $   22,637     $   28,795
                ============   ============    ============   ============


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

                   Nine Months Ended September 30, 2006

                 Preopening
                    and                          Property
                  start-up     Restructuring   transactions,
                  expenses         costs           net           Total
                ------------   ------------    ------------   ------------
  Las Vegas
   Strip         $   19,024     $    1,035      $   32,635     $   52,694
  Other Nevada           --             --            (171)          (171)
  MGM Grand
   Detroit            1,924             --               1          1,925
  Mississippi            --             --             177            177
  Unconsolidated
   resorts            5,969             --              --          5,969
                ------------   ------------    ------------   ------------
                     26,917          1,035          32,642         60,594
  Corporate and
   other                391             --           3,684          4,075
                ------------   ------------    ------------   ------------
                 $   27,308     $    1,035      $   36,326     $   64,669
                ============   ============    ============   ============


                   Nine Months Ended September 30, 2005

                 Preopening
                    and                          Property
                  start-up    Restructuring    transactions,
                  expenses    costs (credit)       net           Total
                ------------   ------------    ------------   ------------
  Las Vegas
   Strip         $   11,252     $        7      $   27,787     $   39,046
  Other Nevada           --             --             (63)           (63)
  MGM Grand
   Detroit                4             --             304            308
  Mississippi           335             --             316            651
  Unconsolidated
   resorts              977             --              --            977
                ------------   ------------    ------------   ------------
                     12,568              7          28,344         40,919
  Corporate and
   other                 --            (66)            289            223
                ------------   ------------    ------------   ------------
                 $   12,568     $      (59)     $   28,633    $    41,142
                ============   ============    ============   ============


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

                    Three Months Ended              Nine Months Ended
                ----------------------------   ----------------------------
                September 30,  September 30,   September 30,  September 30,
                    2006           2005            2006           2005
                ------------   ------------    ------------   ------------

  EBITDA         $  591,203     $  501,565      $1,763,571     $1,434,838
   Depreciation
    and
    amortization   (163,536)      (161,566)       (483,793)      (423,734)
                ------------   ------------    ------------   ------------
  Operating
   income           427,667        339,999       1,279,778      1,011,104
                ------------   ------------    ------------   ------------

   Non-operating
    income
    (expense):
     Interest
      expense,
      net          (193,899)      (193,150)       (586,630)      (461,966)
     Other           (3,631)           706         (11,172)       (16,941)
                ------------   ------------    ------------   ------------
                   (197,530)      (192,444)       (597,802)      (478,907)
                ------------   ------------    ------------   ------------

  Income before
   income taxes     230,137        147,555         681,976        532,197
     Provision
      for income
      taxes         (73,875)       (54,345)       (235,283)      (186,740)
                ------------   ------------    ------------   ------------
  Net income     $  156,262     $   93,210      $  446,693     $  345,457
                ============   ============    ============   ============


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

                  Three Months Ended September 30, 2006

                                               Depreciation
                                 Operating         and
                                  income       amortization      EBITDA
                               ------------    ------------   ------------
  Las Vegas Strip               $  355,282      $  131,339     $  486,621
  Other Nevada                      12,493           9,478         21,971
  MGM Grand Detroit                 33,865           4,556         38,421
  Mississippi                       16,353           8,658         25,011
  Unconsolidated resorts            64,814              --         64,814
                               ------------    ------------   ------------
                                   482,807         154,031        636,838
  Stock compensation                                              (17,387)
  Corporate and other                                             (28,248)
                                                              ------------
                                                               $  591,203
                                                              ============


                  Three Months Ended September 30, 2005

                                               Depreciation
                                 Operating         and
                                  income       amortization      EBITDA
                               ------------    ------------   ------------
  Las Vegas Strip               $  275,464      $  129,364     $  404,828
  Other Nevada                      16,452           9,731         26,183
  MGM Grand Detroit                 30,327           6,487         36,814
  Mississippi                        6,313           9,103         15,416
  Unconsolidated resorts            50,436              --         50,436
                               ------------    ------------   ------------
                                   378,992         154,685        533,677
  Stock compensation                                                   --
  Corporate and other                                             (32,112)
                                                              ------------
                                                               $  501,565
                                                              ============


                   Nine Months Ended September 30, 2006

                                               Depreciation
                                 Operating         and
                                  income       amortization      EBITDA
                               ------------    ------------   ------------
  Las Vegas Strip               $1,131,278      $  396,839     $1,528,117
  Other Nevada                      42,466          29,290         71,756
  MGM Grand Detroit                103,310          10,710        114,020
  Mississippi                       22,746          19,655         42,401
  Unconsolidated resorts           154,154              --        154,154
                               ------------    ------------   ------------
                                 1,453,954         456,494      1,910,448
  Stock compensation                                              (55,093)
  Corporate and other                                             (91,784)
                                                              ------------
                                                               $1,763,571
                                                              ============


                   Nine Months Ended September 30, 2005


                                               Depreciation
                                 Operating         and
                                  income       amortization      EBITDA
                               ------------    ------------   ------------
  Las Vegas Strip               $  835,422      $  337,406     $1,172,828
  Other Nevada                      32,107          24,815         56,922
  MGM Grand Detroit                 94,551          19,899        114,450
  Mississippi                       45,725          21,731         67,456
  Unconsolidated resorts           113,959              --        113,959
                               ------------    ------------   ------------
                                 1,121,764         403,851      1,525,615
  Stock compensation                                                   --
  Corporate and other                                             (90,777)
                                                              ------------
                                                               $1,434,838
                                                              ============


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

                                          September 30,       December 31,
                                              2006               2005
                                         ---------------    ---------------
                                  ASSETS

  Current assets:
      Cash and cash equivalents           $     343,716      $     377,933
      Accounts receivable, net                  343,491            352,673
      Inventories                               117,335            111,825
      Deferred income taxes                      63,693             65,518
      Prepaid expenses and other                134,298            110,634
                                         ---------------    ---------------
            Total current assets              1,002,533          1,018,583
                                         ---------------    ---------------

  Real estate under development                 128,116                 --

  Property and equipment, net                17,227,810         16,541,651

  Other assets:
      Investments in unconsolidated
       affiliates                             1,082,664            931,154
      Goodwill                                1,307,118          1,314,561
      Other intangible assets, net              375,115            377,479
      Deposits and other assets, net            521,244            515,992
                                         ---------------    ---------------
            Total other assets                3,286,141          3,139,186
                                         ---------------    ---------------
                                          $  21,644,600      $  20,699,420
                                         ===============    ===============

                   LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                    $     439,782      $     265,601
      Income taxes payable                       25,503            125,503
      Current portion of long-term debt              --                 14
      Accrued interest on long-term debt        196,022            229,930
      Other accrued liabilities                 892,849            913,520
                                         ---------------    ---------------
            Total current liabilities         1,554,156          1,534,568
                                         ---------------    ---------------

  Deferred income taxes                       3,377,594          3,378,371
  Long-term debt                             12,955,822         12,355,433
  Other long-term obligations                   215,617            195,976
  Stockholders' equity:
      Common stock ($.01 par value:
       authorized 600,000,000 shares,
       issued 359,554,443 and
       357,262,405 shares and
       outstanding 280,580,590 and
       285,069,516 shares)                        3,596              3,573
      Capital in excess of par value          2,700,768          2,586,587
      Deferred compensation                        (360)            (3,618)
      Treasury stock, at cost (78,973,853
       and 72,192,889 shares)                (1,596,984)        (1,338,394)
      Retained earnings                       2,434,418          1,987,725
      Accumulated other comprehensive loss          (27)              (801)
                                         ---------------    ---------------
            Total stockholders' equity        3,541,411          3,235,072
                                         ---------------    ---------------
                                          $  21,644,600      $  20,699,420
                                         ===============    ===============

FCMN Contact: dan_d'arrigo@mgmmirage.com

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

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

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