MGM MIRAGE Reports Record Fourth Quarter and Full Year Results

February 14, 2007
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported its fourth quarter and full year 2006 financial results, achieving record fourth quarter and annual earnings. Diluted earnings per share from continuing operations for the quarter was $0.68 compared to $0.33 per share earned in 2005. Net revenues reached a record high and operating margins remained solid during the fourth quarter, resulting from strong returns on strategic capital investments in the Company's resorts. Fourth quarter results benefited from a full quarter of operations at Beau Rivage, the Company's share of profits from the sale of Tower 2 condominium units at The Signature at MGM Grand, and pre-tax income of $86 million from Hurricane Katrina insurance recoveries.

  Highlights from the quarter include:

  *  13% increase in gaming revenues, representing strong Las Vegas Strip
     results and the contribution from Beau Rivage;(1)

  *  8% increase in hotel revenues, with an 8% increase in Las Vegas Strip
     REVPAR;(2)

  *  Property EBITDA(3) of $740 million compared to $537 million in the 2005
     quarter.

The Company recently made significant progress on several development initiatives, including:

  *  Announced a second development in Macau with the Company's partner
     Pansy Ho; planning for a site in Cotai has begun;

  *  Began taking reservations for CityCenter residential units, with
     tremendous early success at converting deposits to contracts;

  *  Finalized agreements with the Mashantucket Pequot Tribal Nation for the
     Foxwoods expansion -- to be branded MGM Grand and expected to open in
     2008 -- and other future joint projects;

  *  Made progress on separate agreements to develop luxury non-gaming
     resorts worldwide with two partners, Mubadala Development Company of
     Abu Dhabi, U.A.E. and the Diaoyutai State Guesthouse in Beijing,
     People's Republic of China;

  *  Announced an agreement with American Nevada Corp. and Diamond Resorts
     to develop a new mixed-use community in Jean, Nevada.

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

  Three months ended December 31,                    2006            2005
  --------------------------------------------------------------------------
  Profits from The Signature at MGM Grand        $    0.15       $      --
  Incremental stock compensation
   - adoption of SFAS 123®                         (0.03)             --
  Preopening and start-up expenses                   (0.02)          (0.01)
  Property transactions, net
   (including insurance recovery income)              0.17           (0.02)
  Tax adjustments                                       --            0.01



"Our strong fourth quarter performance validates our disciplined approach to re-investing in our core assets and providing world-class, unmatched experiences to our customers," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "Our plans to expand our operations, both in the United States and overseas, are designed to leverage our tremendous brands into new markets."

During the quarter, the Company entered into agreements to sell the Primm Valley Resorts, excluding the Primm Valley Golf Club, for $400 million and the Laughlin properties (Colorado Belle and Edgewater) for $200 million. The results of these operations have been classified as discontinued operations in the accompanying financial statements and schedules. Earnings per share from discontinued operations for the 2006 quarter was $0.01, leading to diluted earnings per share, including discontinued operations, of $0.69 for the current quarter versus $0.33 in the prior-year quarter.

For the full year 2006, net revenues were $7.2 billion, an increase of 17% over $6.1 billion in 2005, largely as a result of the full year of Mandalay results and continued operating strength, particularly in the hotel and gaming areas. Property EBITDA was $2.6 billion, a 28% increase over the prior year, and diluted earnings per share from continuing operations was $2.18 versus $1.47 earned in 2005, an increase of 48%. Property EBITDA and earnings per share benefited from a full year of operations for the Mandalay Resort Group properties, the sale of condominium units at The Signature at MGM Grand, and income from Hurricane Katrina insurance recoveries.

Detailed Discussion of Fourth Quarter Results

Net revenue for the quarter increased $187 million, or 11%, to $1.846 billion from $1.659 billion in prior year; Beau Rivage contributed $89 million of the increase. The Company's resorts continue to capitalize on healthy market conditions with new and upgraded amenities and the continued rollout of the Players Club loyalty program to the Mandalay Resort Group properties.

The 13% increase in gaming revenues included strong results of fourth quarter events, including New Years weekend, and the reopening of Beau Rivage. Table games revenue was up 13% - 8% excluding Beau Rivage -- with a higher hold percentage in the current year. Table games hold percentages were within the normal 18-22% range for both periods. Slots revenue benefited from the contribution of Beau Rivage; excluding Beau Rivage slots revenue was up 1% compared with the 2005 quarter.

Non-gaming revenue exceeded the prior-year quarter by 10%. Higher room rates and occupancy percentages at our Las Vegas Strip resorts led to an 8% increase in Las Vegas Strip REVPAR -- the highest quarter-over-quarter REVPAR growth this year, and particularly impressive following a strong 8% increase in the 2005 fourth quarter. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

                                                   Three Months Ended
                                               ----------------------------
                                               December 31,    December 31,
                                                  2006            2005
                                               ------------    ------------
  Occupancy %                                        93%             92%
  Average Daily Rate (ADR)                      $   151         $   142
  Revenue per Available Room (REVPAR)           $   140         $   130



Food and beverage revenue increased 7% for the quarter -- 2% without Beau Rivage -- due to new restaurants and lounges at several resorts, including The Mirage and Mandalay Bay. Entertainment revenue was up 19%, largely due to the tremendous success of Love at The Mirage.

The Company's operating margins increased to 28% from 20% in the 2005 quarter. Operating income increased 49% to $508 million, which includes $65 million of profit from closings on a portion of the units of Tower 2 of The Signature at MGM Grand and operating income of $94 million from Beau Rivage (which includes the $86 million of income from insurance recoveries), offset by $15 million in stock compensation expense. Excluding these items, operating income was up 7%, with an operating margin of 21% for the current-year quarter. Property EBITDA increased 38% to $740 million; excluding the items noted above, Property EBITDA was up 6% and the Property EBITDA margin was 32%, which is consistent with the prior year.

Detailed Discussion of Certain Items

In the fourth quarter of 2006, net property transactions included income from Hurricane Katrina insurance recoveries of $86 million, partially offset by write-downs related to corporate assets of $5 million. In the 2005 period, net property transactions of $8 million largely related to the write-off of assets replaced in connection with expansion and remodel projects at Mandalay Bay and The Mirage.

Preopening and start-up expenses of $9 million in the 2006 quarter related primarily to CityCenter, MGM Grand Macau, Tower 2 of The Signature at MGM Grand, and the permanent facility at MGM Grand Detroit. Preopening and start-up expenses of $3 million in 2005 related primarily to Jet at The Mirage, MGM Grand Macau, and The Signature at MGM Grand.

Earnings for the 2006 fourth 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 $15 million as a result of implementing the standard as follows:

  Three months ended December 31,                                   2006
  -------------------------------------------------------------------------
                                                              (In thousands)
  Casino                                                         $    2,972
  Other operating departments                                           117
  General and administrative                                          4,261
  Corporate expense and other                                         7,715
                                                                 ----------
                                                                 $   15,065
                                                                 ==========



                            Financial Position

Fourth quarter capital investments totaled $518 million, which included $271 million for CityCenter, $68 million for the permanent MGM Grand Detroit hotel and casino, and $63 million related to Beau Rivage. Remaining capital expenditures of $116 million included routine capital expenditures at various resorts. Of this amount, approximately $19 million related to spending on a room remodel project and new amenities at Mandalay Bay, and approximately $9 million related to room remodel projects at Excalibur and TI.

During the quarter, the Company received an additional $190 million in insurance recoveries related to Hurricane Katrina's impact on Beau Rivage, bringing total recoveries to date to $355 million.

In December, the Company issued $750 million of long-term, fixed rate debt at 7.625%, which it used to reduce outstanding borrowings under its senior credit facility. At December 31, 2006, the Company had $2.6 billion of available borrowings under its $7 billion senior credit facility.

"In addition to our renowned portfolio of resorts, our real estate holdings in Las Vegas and Atlantic City along with our signature brands provide tremendous future value," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "Our proven development and operating expertise combined with these valuable assets provide considerable short and long-term growth opportunities for the Company."

Outlook

Mr. Murren continued, "We expect 2007 to be another year of strong financial performance. We expect outstanding returns on new amenities to drive organic growth. As demonstrated by the significant increases in cash flow at The Mirage and MGM Grand, our efforts at Mandalay Bay, Luxor and several other properties should lead to increased customer volumes and better pricing at these resorts."

"Our development pipeline will create additional value in 2007, with major new projects coming on line in Detroit and Macau," Mr. Murren said. "We remain focused on maintaining our solid financial position, while executing on our strategic long-term growth projects, particularly CityCenter."

"As the industry leader in providing detailed financial information, we continue to provide supplemental data for our Las Vegas Strip resorts on our website and invite you to listen to our conference call for further discussion on the Company's future outlook and developments."

MGM MIRAGE will hold a conference call to discuss its fourth quarter earnings results 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 February 21, 2007, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 6656317. 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) Beau Rivage earned Property EBITDA of $106 million and operating
      income of $94 million in the fourth quarter of 2006, including income
      from insurance recoveries of $86 million.  Depreciation and
      amortization was $12 million for the quarter.

  (2) REVPAR is hotel Revenue per Available Room.

  (3) "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 income from continuing operations 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. 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            Twelve Months Ended
                  ---------------------------   ---------------------------
                  December 31,   December 31,   December 31,   December 31,
                      2006           2005           2006           2005
                  ------------   ------------  -------------  ------------
  Revenues:
    Casino        $   833,439    $   736,930   $  3,130,438   $  2,764,546
    Rooms             493,111        455,099      1,991,477      1,634,588
    Food and
     beverage         375,753        350,150      1,483,914      1,271,650
    Entertainment     130,417        109,329        459,540        426,175
    Retail             71,160         68,603        278,695        253,214
    Other             117,018         97,458        452,669        339,424
                  ------------   ------------  -------------  -------------
                    2,020,898      1,817,569      7,796,733      6,689,597
    Less:
     Promotional
     allowances      (174,860)      (159,069)      (620,777)      (560,754)
                  ------------   ------------  -------------  -------------
                    1,846,038      1,658,500      7,175,956      6,128,843
                  ------------   ------------  -------------  -------------
  Expenses:
    Casino            425,198        388,878      1,612,992      1,422,472
    Rooms             135,410        129,573        539,442        454,082
    Food and
     beverage         234,860        212,189        902,278        782,372
    Entertainment      93,567         79,387        333,619        305,799
    Retail             43,988         44,867        179,929        164,189
    Other              63,913         49,463        245,126        187,956
    General and
     administrative   285,592        242,616      1,070,942        889,806
    Corporate
     expense           51,092         40,079        161,507        130,633
    Preopening and
     start-up
     expenses           9,054          3,184         36,362         15,752
    Restructuring
     costs (credit)        --             --          1,035            (59)
    Property
     transactions,
     net              (77,435)         8,292        (40,980)        37,021
    Depreciation
     and
     amortization     168,121        157,017        629,627        560,626
                  ------------   ------------  -------------  -------------
                    1,433,360      1,355,545      5,671,879      4,950,649
                  ------------   ------------  -------------  -------------
  Income from
   unconsolidated
   affiliates          95,398         36,935        254,171        151,871
                  ------------   ------------  -------------  -------------
  Operating
   income             508,076        339,890      1,758,248      1,330,065
                  ------------   ------------  -------------  -------------
  Non-operating
   income
   (expense):
    Interest income     2,770          1,865         11,192         12,037
    Interest
     expense, net    (187,368)      (189,616)      (760,361)      (640,758)
    Non-operating
     items from
     unconsolidated
     affiliates        (4,500)        (4,290)       (16,063)       (15,825)
    Other, net         (8,213)        (2,856)       (15,090)       (18,434)
                  ------------   ------------  -------------  -------------
                     (197,311)      (194,897)      (780,322)      (662,980)
                  ------------   ------------  -------------  -------------
  Income from
   continuing
   operations
   before income
   taxes              310,765        144,993        977,926        667,085
    Provision
     for income
     taxes           (111,637)       (48,369)      (341,930)      (231,719)
                  ------------   ------------  -------------  -------------
  Income from
   continuing
   operations         199,128         96,624        635,996        435,366
                  ------------   ------------  -------------  -------------

  Discontinued
   operations
    Income from
    discontinued
    operations          3,658          1,710         18,473         11,815
    Provision for
    income taxes       (1,215)          (535)        (6,205)        (3,925)
                  ------------   ------------  -------------  -------------
                        2,443          1,175         12,268          7,890
                  ------------   ------------  -------------  -------------

  Net income      $   201,571    $    97,799   $    648,264   $    443,256
                  ============   ============  =============  ============

  Per share of
   common stock:
    Basic:
    Income from
     continuing
     operations   $      0.70    $      0.34   $       2.25   $       1.53
    Discontinued
     operations          0.01             --           0.04           0.03
                  ------------   ------------  -------------  -------------
    Net income
     per share    $      0.71    $      0.34   $       2.29   $       1.56
                  ============   ============  =============  ============
    Weighted
     average
     shares
     outstanding      282,307        284,985        283,140        284,943
                  ============   ============  =============  ============
    Diluted:
    Income from
     continuing
     operations   $      0.68    $      0.33   $       2.18   $       1.47
    Discontinued
     operations          0.01             --           0.04           0.03
                  ------------   ------------  -------------  -------------
    Net income
     per share    $      0.69    $      0.33   $       2.22   $       1.50
                  ============   ============  =============  ============
    Weighted
     average
     shares
     outstanding      291,774        295,106        291,747        296,334
                  ============   ============  =============  ============



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

                        Three Months Ended          Twelve Months Ended
                  -----------------------------  ---------------------------
                  December 31,    December 31,   December 31,  December 31,
                      2006            2005           2006          2005
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $  1,556,676    $  1,462,597   $  6,227,768  $  5,228,916
  Other Nevada          46,385          47,651        197,646       143,334
  MGM Grand
   Detroit             116,155         110,039        461,297       441,093
  Mississippi          126,822          38,213        289,245       315,500
                  -------------   -------------  ------------- -------------
                  $  1,846,038    $  1,658,500  $   7,175,956  $  6,128,843
                  =============   =============  ============= =============



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

                         Three Months Ended         Twelve Months Ended
                  -----------------------------  ---------------------------
                  December 31,    December 31,   December 31,  December 31,
                      2006            2005           2006          2005
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $    494,491    $    453,326   $  2,022,608  $  1,626,154
  Other Nevada           3,903           5,529         22,729        21,397
  MGM Grand
   Detroit              36,354          36,280        150,374       150,730
  Mississippi          112,506           6,340        154,907        73,796
  Unconsolidated
   resorts              93,051          35,998        247,205       149,957
                  -------------   -------------  ------------- -------------
                  $    740,305    $    537,473   $  2,597,823  $  2,022,034
                  =============   =============  ============= =============



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

                Three Months Ended December 31, 2006
                ------------------------------------
                     Preopening                    Property
                    and start-up  Restructuring  transactions,
                     expenses          costs         net           Total
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $      5,186    $         --    $     2,668  $      7,854
  Other Nevada              --              --            378           378
  MGM Grand
   Detroit               1,389              --             --         1,389
  Mississippi               --              --        (86,015)      (86,015)
  Unconsolidated
   resorts               2,347              --             --         2,347
                  -------------   -------------  ------------- -------------
                         8,922              --        (82,969)      (74,047)
  Corporate
   and other               132              --          5,534         5,666
                  -------------   -------------  ------------- -------------
                  $      9,054    $         --   $    (77,435) $    (68,381)
                  =============   =============  ============= =============


                Three Months Ended December 31, 2005
                ------------------------------------
                     Preopening                    Property
                    and start-up  Restructuring  transactions,
                     expenses          costs         net           Total
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $      1,789    $         --   $      7,612  $      9,401
  Other Nevada              --              --            (17)          (17)
  MGM Grand
   Detroit                 499              --            130           629
  Mississippi              (41)             --             80            39
  Unconsolidated
   resorts                 937              --             --           937
                  -------------   -------------  ------------- -------------
                         3,184              --          7,805        10,989
  Corporate
   and other                --              --            487           487
                  -------------   -------------  ------------- -------------
                  $      3,184    $         --   $      8,292  $     11,476
                  =============   =============  ============= =============



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

                Twelve Months Ended December 31, 2006
                -------------------------------------
                     Preopening                    Property
                    and start-up  Restructuring  transactions,
                     expenses          costs         net           Total
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $     24,210    $      1,035   $     35,303  $     60,548
  Other Nevada              --              --            336           336
  MGM Grand
   Detroit               3,313              --              1         3,314
  Mississippi               --              --        (85,838)      (85,838)
  Unconsolidated
   resorts               8,316              --             --         8,316
                  -------------   -------------  ------------- -------------
                        35,839           1,035        (50,198)      (13,324)
   Corporate
    and other              523              --          9,218         9,741
                  -------------   -------------  ------------- -------------
                  $     36,362    $      1,035   $    (40,980) $     (3,583)
                  =============   =============  ============= =============


                Twelve Months Ended December 31, 2005
                -------------------------------------
                     Preopening                    Property
                    and start-up  Restructuring  transactions,
                     expenses     costs(credit)       net           Total
                  -------------   -------------  ------------- -------------
  Las Vegas
   Strip          $     13,041    $          7   $     35,399  $     48,447
  Other Nevada              --              --             16            16
  MGM Grand
   Detroit                 503              --            434           937
  Mississippi              294              --            396           690
  Unconsolidated
   resorts               1,914              --             --         1,914
                  -------------   -------------  ------------- -------------
                        15,752               7         36,245        52,004
   Corporate
    and other               --             (66)           776           710
                  -------------   -------------  ------------- -------------
                  $     15,752    $        (59)  $     37,021  $     52,714
                  =============   =============  ============= =============



                         MGM MIRAGE AND SUBSIDIARIES
  RECONCILIATION OF CONSOLIDATED EBITDA TO INCOME FROM CONTINUING OPERATIONS
                                (In thousands)
                                 (Unaudited)

                         Three Months Ended         Twelve Months Ended
                  -----------------------------  ---------------------------
                  December 31,    December 31,   December 31,  December 31,
                      2006            2005           2006          2005
                  -------------   -------------  ------------- -------------
  EBITDA          $    676,197    $    496,907   $  2,387,875  $  1,890,691
    Depreciation
    and
    amortization      (168,121)       (157,017)      (629,627)     (560,626)
                  -------------   -------------  ------------- -------------
  Operating
   income              508,076         339,890      1,758,248     1,330,065
                  -------------   -------------  ------------- -------------
  Non-operating
   income
   (expense):
    Interest
    expense, net      (187,368)       (189,616)      (760,361)     (640,758)
    Other               (9,943)         (5,281)       (19,961)      (22,222)
                  -------------   -------------  ------------- -------------
                      (197,311)       (194,897)      (780,322)     (662,980)
                  -------------   -------------  ------------- -------------

  Income from
   continuing
   operations
   before income
   taxes               310,765         144,993        977,926       667,085
    Provision for
     income taxes     (111,637)        (48,369)      (341,930)     (231,719)
                  -------------   -------------  ------------- -------------
  Income from
   continuing
   operations     $    199,128    $     96,624   $    635,996  $    435,366
                  =============   =============  ============= =============



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

                    Three Months Ended December 31, 2006
                    ------------------------------------

                                           Depreciation
                             Operating          and
                              income       amortization        EBITDA
                           -------------  ---------------  --------------
  Las Vegas Strip           $   359,467     $    135,024    $    494,491
  Other Nevada                    1,932            1,971           3,903
  MGM Grand Detroit              30,880            5,474          36,354
  Mississippi                    97,387           15,119         112,506
  Unconsolidated resorts         93,051               --          93,051
                           -------------  ---------------  --------------
                                582,717          157,588         740,305
  Stock compensation                                             (15,065)
  Corporate and other                                            (49,043)
                                                           --------------
                                                            $    676,197
                                                           ==============

                    Three Months Ended December 31, 2005
                    ------------------------------------

                                           Depreciation
                             Operating          and
                              income       amortization        EBITDA
                           -------------  ---------------  --------------
    Las Vegas Strip         $    319,433    $    133,893    $    453,326
    Other Nevada                   3,070           2,459           5,529
    MGM Grand Detroit             29,530           6,750          36,280
    Mississippi                    1,367           4,973           6,340
    Unconsolidated resorts        35,998              --          35,998
                           -------------  ---------------  --------------
                                 389,398         148,075         537,473
    Stock compensation                                                --
    Corporate and other                                          (40,566)
                                                           --------------
                                                            $    496,907
                                                           ==============

                   Twelve Months Ended December 31, 2006
                   -------------------------------------

                                           Depreciation
                             Operating          and
                              income       amortization        EBITDA
                           -------------  ---------------  --------------
    Las Vegas Strip         $  1,490,745    $    531,863    $  2,022,608
    Other Nevada                  13,755           8,974          22,729
    MGM Grand Detroit            134,190          16,184         150,374
    Mississippi                  120,133          34,774         154,907
    Unconsolidated resorts       247,205              --         247,205
                           -------------  ---------------  --------------
                               2,006,028         591,795       2,597,823
    Stock compensation                                           (69,121)
    Corporate and other                                         (140,827)
                                                           --------------
                                                            $  2,387,875
                                                           ==============

                   Twelve Months Ended December 31, 2005
                   -------------------------------------

                                           Depreciation
                             Operating          and
                              income       amortization        EBITDA
                           -------------  ---------------  --------------
    Las Vegas Strip         $  1,154,855    $    471,299    $  1,626,154
    Other Nevada                  14,248           7,149          21,397
    MGM Grand Detroit            124,081          26,649         150,730
    Mississippi                   47,092          26,704          73,796
    Unconsolidated resorts       149,957              --         149,957
                           -------------  ---------------  --------------
                               1,490,233         531,801       2,022,034
    Stock compensation                                                --
    Corporate and other                                         (131,343)
                                                           --------------
                                                            $  1,890,691
                                                           ==============



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

                                             December 31,     December 31,
                                                2006             2005
                                           ---------------  ---------------

                                   ASSETS
  Current assets:
      Cash and cash equivalents             $     452,944    $     377,933
      Accounts receivable, net                    362,921          352,673
      Inventories                                 118,459          111,825
      Income tax receivable                        18,619               --
      Deferred income taxes                        68,046           65,518
      Prepaid expenses and other                  124,414          110,634
      Assets held for sale                        369,348               --
                                           ---------------  ---------------
            Total current assets                1,514,751        1,018,583
                                           ---------------  ---------------

  Real estate under development                   188,433               --

  Property and equipment, net                  17,241,860       16,541,651

  Other assets:
      Investments in unconsolidated
       affiliates                               1,092,257          931,154
      Goodwill                                  1,300,747        1,314,561
      Other intangible assets, net                367,200          377,479
      Deposits and other assets, net              440,990          515,992
                                           ---------------  ---------------
            Total other assets                  3,201,194        3,139,186
                                           ---------------  ---------------
                                            $  22,146,238    $  20,699,420
                                           ===============  ===============


                    LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                      $     416,640    $     265,601
      Income taxes payable                             --          125,503
      Current portion of long-term debt                --               14
      Accrued interest on long-term debt          232,957          229,930
      Other accrued liabilities                   958,244          913,520
      Liabilities related to assets held
       for sale                                    40,259               --
                                           ---------------  ---------------
            Total current liabilities           1,648,100        1,534,568
                                           ---------------  ---------------

  Deferred income taxes                         3,441,157        3,378,371
  Long-term debt                               12,994,869       12,355,433
  Other long-term obligations                     212,563          195,976
  Stockholders' equity:
      Common stock ($.01 par value:
       authorized 600,000,000 shares,
       issued 362,886,027 and
       357,262,405 shares and outstanding
       283,909,000 and 285,069,516 shares)          3,629            3,573
      Capital in excess of par value            2,806,636        2,586,587
      Deferred compensation                            --           (3,618)
      Treasury stock, at cost (78,977,027
       and 72,192,889 shares)                  (1,597,120)      (1,338,394)
      Retained earnings                         2,635,989        1,987,725
      Accumulated other comprehensive
       income (loss)                                  415             (801)
                                           ---------------  ---------------
            Total stockholders' equity          3,849,549        3,235,072
                                           ---------------  ---------------
                                            $  22,146,238    $  20,699,420
                                           ===============  ===============

First Call Analyst:
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.mgmmirage.com/