MGM MIRAGE Reports Record Second Quarter Results

August 02, 2007
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) today reported its second quarter 2007 financial results, achieving the Company's highest ever second quarter diluted earnings per share from continuing operations of $0.62, a 27% increase over the $0.49 per share earned in 2006. Earnings benefited from strong revenue trends, solid operating margins, and profits from sales of Tower 3 of The Signature at MGM Grand.

Net income per share on a diluted basis, including discontinued operations, was $1.22 per share compared to $0.50 per share in 2006. During the second quarter, the Company recognized a pre-tax gain of $201 million on the sale of Primm Valley Resorts and a pre-tax gain of $63 million on the sale of its Laughlin Properties -- Colorado Belle and Edgewater.

Net revenues for the second quarter increased 10% to $1.9 billion, an all-time record quarter for the Company. In addition to the incremental revenue from Beau Rivage, which reopened in August 2006, the Company benefited from strong hotel revenues and the impact of new amenities at many of its Las Vegas Strip resorts.

  Key results from the quarter include:

  -- Las Vegas Strip REVPAR(1) increased 7%, which represents the sixteenth
     consecutive quarter of year-over-year REVPAR increases for these
     resorts;
  -- Occupancy at the Company's Las Vegas Strip resorts was 97.8%, the
     highest occupancy level achieved since 2000;
  -- Property EBITDA(2) of $686 million was also a record for the second
     quarter, and represented a 9% increase over the prior year;
  -- MGM Grand Las Vegas earned Property EBITDA of $108 million, a 43%
     increase over prior year second quarter and its best quarter ever. TI
     and Excalibur also earned all-time record Property EBITDA of $34
     million and $38 million, respectively;
  -- The Mirage achieved record Property EBITDA for the second quarter of
     $59 million, a 41% increase over prior year. New York-New York also had
     a record second quarter Property EBITDA performance, earning $37
     million;
  -- Non-gaming revenues increased 13%, 10% excluding Beau Rivage, with
     continued strong results from non-gaming amenities;
  -- Gaming revenues increased 5%, but decreased 5% excluding Beau Rivage
     due to a lower table games hold percentage. Slot revenues increased 4%
     at the Company's Las Vegas Strip resorts;
  -- Beau Rivage, which was closed in the prior year quarter, earned
     Property EBITDA of $23 million;(3)
  -- Earned $63 million of profit from closings on units of Tower 3 at The
     Signature at MGM Grand;
  -- Successfully issued $750 million of 7.5% senior notes maturing in 2016.

In June, the Company signed a letter of intent with Kerzner International to form a 50/50 joint venture to develop a multi-billion dollar integrated resort to be located on the corner of Las Vegas Boulevard and Sahara Avenue. The Company will provide 40 acres of land, which is being valued at $20 million per acre, and Kerzner International and one of its financial partners will contribute cash equity.

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 June 30,                     2007           2006
  --------------------------------------------------------------------
  Profits from The Signature at MGM Grand      $  0.14        $  0.06
  Preopening and start-up expenses               (0.03)         (0.03)
  Property transactions, net                     (0.01)         (0.03)



"Our targeted capital investments, particularly in our non-gaming operations, have led to strong returns and record earnings," said Terry Lanni, MGM MIRAGE's Chairman and CEO. "The opening of MGM Grand Detroit and MGM Grand Macau later this year, and our recently announced joint venture project with Kerzner International, further illustrate the powerful momentum created by our accelerated growth platform."

Net revenues increased 10%; excluding Beau Rivage, net revenues were up 4%. As a result of its continued commitment to reinvest in its resorts, the Company generated significant increases in revenues from its non-gaming operations.

Recent and continuing upgrades at Mandalay Bay, including fully remodeled standard rooms, are expected to further enhance that property's results. In addition, the Company continues to make investments across its portfolio of resorts, most notably at Luxor and Monte Carlo, targeted at driving increased customer visitation. The Company believes that these enhancements will positively impact the Company's results in future periods.

The new MGM Grand Detroit is expected to open in October 2007 featuring Detroit's most luxurious hotel and casino with 400 rooms. The new resort will have a larger casino, with 4,500 slot machines compared to 2,840 in the current interim casino and 98 table games (including an eight-table poker room) versus 72. MGM Grand Detroit will include a variety of exciting food and beverage and entertainment amenities, including restaurants from world-famous chefs Wolfgang Puck and Michael Mina.

Gaming revenues increased 5%, but decreased 5% excluding Beau Rivage. Slot revenues at the Company's Las Vegas Strip resorts increased 4% with double-digit increases at Bellagio and MGM Grand Las Vegas. MGM Grand Detroit experienced a 4% decrease in slot revenues, as a competitor recently opened its expanded casino facility.

Table games volume excluding baccarat increased 15%, 5% excluding Beau Rivage. Baccarat volume decreased 13% against a tough prior year comparison -- 2006 results were up 19% on same store basis over the 2005 quarter. The overall table games hold percentage was within the normal 18-22% range in both periods, but was near the low end of the range in the current year versus the high end of the range in the 2006 quarter. In particular, Bellagio and Mandalay Bay experienced hold percentages below the Company's normal range in the current quarter.

Rooms revenues increased 9%, 5% excluding Beau Rivage, despite having 60,000 less available rooms due to room remodeling at Mandalay Bay and the closing of Nevada Landing in March 2007. Average room rates increased 5% at the Company's Las Vegas Strip resorts. Las Vegas Strip REVPAR increased 7%, led by double-digit percentage increases at MGM Grand Las Vegas, Excalibur, and TI. The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:

                                                 Three Months Ended
                                               ----------------------
                                               June 30,      June 30,
                                                 2007          2006
                                               ----------   ---------
     Occupancy %                                  98%           97%
     Average Daily Rate (ADR)                  $  162        $  154
     Revenue per Available Room (REVPAR)       $  159        $  148



The Company's operating income increased 12% to $469 million, which includes $63 million of profit from closings on units of Tower 3 of The Signature at MGM Grand and $11 million of operating income from Beau Rivage. The prior year quarter included $28 million of income from Tower 1 of The Signature at MGM Grand. Excluding these items, operating income increased slightly from prior year with a margin of 22% in both quarters. Property EBITDA increased 9% to a record $686 million; excluding the above items, Property EBITDA increased slightly compared to the prior year quarter with a 33% margin, slightly below the 34% margin in the 2006 quarter.

Detailed Discussion of Certain Charges

In the second quarter of 2007 the company had minimal property transactions. In the 2006 period, 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.

Preopening and start-up expenses of $14 million in 2007 primarily related to CityCenter, MGM Grand Detroit, and MGM Grand Macau. Preopening and start-up expenses of $15 million in the 2006 quarter related primarily to CityCenter, the Love show at The Mirage, The Signature at MGM Grand, and our share of preopening related to the Borgata expansion.

Financial Position

Second quarter capital investments totaled $1.3 billion, which included $441 million for CityCenter, $81 million for the permanent MGM Grand Detroit resort, and $23 million for trailing payments on the construction of Beau Rivage. Also during the quarter, the Company purchased 34 acres of land north of Circus Circus Las Vegas for $580 million, 26 acres of which are part of the land to be contributed to the joint venture with Kerzner International. Remaining capital expenditures included spending of $54 million on room and suite remodel projects, primarily at Mandalay Bay, expenditures for corporate aircraft of $27 million, and $90 million of other routine capital expenditures on various new and upgraded amenities at the Company's resorts.

During the quarter the Company received an additional $19 million of insurance recoveries related to Hurricane Katrina. These amounts were not recognized as income pending the final settlement of the Company's insurance claim. At June 30, 2007, the Company had $2.0 billion of available borrowings under its senior credit facility.

"Our operating results this quarter once again prove the power of our portfolio to generate consistent cash flows," said Jim Murren, MGM MIRAGE President, CFO and Treasurer. "More exciting is the pace of future growth. We will continue to develop strategic relationships designed to create additional value from our significant real estate portfolio. Of course, CityCenter is at the heart of our growth strategy; we are very pleased with the quality of the development and the pace of residential sales, and we continue on track for a late 2009 opening."

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 http://www.companyboardroom.com/ or http://www.mgmmirage.com/, or by calling 1-800-526-8531 (domestic) or 1-706-634-6528 (international). Until Thursday, August 9, 2007, a complete replay of the conference call can be accessed by dialing 1-706-645-9291, access code 7007679. A complete replay of the call will also be made available at http://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 $11 million in the second
      quarter of 2007, with depreciation and amortization of $12 million.
      Beau Rivage was closed during the prior year second quarter as a
      result of Hurricane Katrina.


MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected hotel and gaming companies, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. 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      Six Months Ended
                              ---------------------  -----------------------
                               June 30,   June 30,    June 30,    June 30,
                                 2007       2006        2007        2006
                              ---------------------  -----------------------
  Revenues:
    Casino                      $773,931   $734,694  $1,585,870  $1,514,952
    Rooms                        555,107    510,861   1,104,111   1,019,259
    Food and beverage            424,717    369,734     842,166     738,778
    Entertainment                143,237    104,853     277,485     203,833
    Retail                        79,072     70,022     147,322     134,508
    Other                        134,760    111,091     256,830     216,886
                               ---------  ---------   ---------   ---------
                               2,110,824  1,901,255   4,213,784   3,828,216
    Less: Promotional
     allowances                 (174,408)  (140,747)   (347,933)   (293,340)
                               ---------  ---------   ---------   ---------
                               1,936,416  1,760,508   3,865,851   3,534,876
                               ---------  ---------   ---------   ---------
  Expenses:
    Casino                       410,168    381,509     828,276     792,541
    Rooms                        143,980    135,214     285,754     267,914
    Food and beverage            249,699    222,248     494,081     438,619
    Entertainment                104,249     76,104     202,394     148,996
    Retail                        49,499     45,696      93,890      89,582
    Other                         76,521     58,373     148,766     113,395
    General and administrative   302,187    256,688     587,292     506,799
    Corporate expense             43,668     38,579      77,623      75,231
    Preopening and start-up
     expenses                     14,148     15,044      28,424      21,225
    Restructuring costs               --        231          --       1,035
    Property transactions, net     2,407     12,688       7,426      36,173
    Depreciation and
     amortization                167,509    157,793     335,786     305,226
                               ---------  ---------   ---------   ---------
                               1,564,035  1,400,167   3,089,712   2,796,736
                               ---------  ---------   ---------   ---------

  Income from unconsolidated
   affiliates                     96,592     57,081     137,967      92,635
                               ---------  ---------   ---------   ---------

  Operating income               468,973    417,422     914,106     830,775
                               ---------  ---------   ---------   ---------

  Non-operating income
   (expense):
    Interest income                5,509      3,027       8,166       5,772
    Interest expense, net       (183,429)  (190,776)   (367,440)   (383,625)
    Non-operating items from
     unconsolidated affiliates    (4,714)    (3,341)     (9,820)     (6,936)
    Other, net                      (804)    (2,174)     (3,532)     (5,218)
                               ---------  ---------   ---------   ---------
                                (183,438)  (193,264)   (372,626)   (390,007)
                               ---------  ---------   ---------   ---------

  Income from continuing
   operations before income
   taxes                         285,535    224,158     541,480     440,768
    Provision for income taxes  (102,637)   (80,817)   (195,572)   (157,665)
                               ---------  ---------   ---------   ---------
  Income from continuing
   operations                    182,898    143,341     345,908     283,103
                               ---------  ---------   ---------   ---------

  Discontinued operations:
    Income from discontinued
     operations                    2,615      4,589      10,461      11,071
    Gain on disposal of
     discontinued operations     263,881         --     263,881          --
    Provision for income taxes   (89,222)    (1,536)    (91,905)     (3,743)
                               ---------  ---------   ---------   ---------
                                 177,274      3,053     182,437       7,328
                               ---------  ---------   ---------   ---------

  Net income                    $360,172   $146,394    $528,345    $290,431
                               =========  =========   =========   =========

  Per share of common stock:
    Basic:
    Income from continuing
     operations                    $0.64      $0.50       $1.22       $1.00
    Discontinued operations         0.63       0.01        0.64        0.02
                               ---------  ---------   ---------   ---------
    Net income per share           $1.27      $0.51       $1.86       $1.02
                               =========  =========   =========   =========

    Weighted average shares
     outstanding                 283,849    284,285     283,933     284,239
                               =========  =========   =========   =========

    Diluted:
    Income from continuing
     operations                    $0.62      $0.49       $1.17       $0.97
    Discontinued operations         0.60       0.01        0.62        0.02
                               ---------  ---------   ---------   ---------
    Net income per share           $1.22      $0.50       $1.79       $0.99
                               =========  =========   =========   =========

    Weighted average shares
     outstanding                 295,232    292,962     295,402     292,868
                               =========  =========   =========   =========



                         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,
                             2007           2006        2007        2006
                          ----------     ----------  ----------  ----------
    Las Vegas Strip       $1,640,648     $1,556,387  $3,266,991  $3,127,991
    Other Nevada              47,058         51,650      91,490      98,449
    MGM Grand Detroit        110,470        113,908     226,604     229,001
    Mississippi              138,240         38,563     280,766      79,435
                          ----------     ----------  ----------  ----------
                          $1,936,416     $1,760,508  $3,865,851  $3,534,876
                          ==========     ==========  ==========  ==========



                         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,
                                2007         2006       2007        2006
                             ----------   ---------  ----------  ----------
    Las Vegas Strip           $531,224     $518,115  $1,080,066  $1,041,496
    Other Nevada                 6,080        7,067       4,084      12,642
    MGM Grand Detroit           28,116       38,499      62,942      75,599
    Mississippi                 27,907        8,031      63,310      17,390
    Unconsolidated resorts      92,952       55,144     131,094      89,340
                             ----------   ---------  ----------  ----------
                              $686,279     $626,856  $1,341,496  $1,236,467
                             ==========   =========  ==========  ==========



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

                       Three Months Ended June 30, 2007
               -----------------------------------------------

                                       Preopening          Property
                                       and start- Restruc-  trans-
                                           up      turing  actions,
                                        expenses   costs     net     Total
                                       ---------   -----   ------   -------
     Las Vegas Strip                      $7,131   $--     $2,587    $9,718
     Other Nevada                             --    --        (20)      (20)
     MGM Grand Detroit                     3,205    --         --     3,205
     Mississippi                              --    --        603       603
     Unconsolidated resorts                3,640    --         --     3,640
                                       ---------   -----   ------   -------
                                          13,976    --      3,170    17,146
     Corporate and other                     172    --       (763)     (591)
                                       ---------   -----   ------   -------
                                         $14,148   $--     $2,407   $16,555
                                       =========   =====   ======   =======


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

                                       Preopening          Property
                                       and start- Restruc-  trans-
                                           up     turing   actions,
                                        expenses  costs      net     Total
                                       ---------   -----   ------   -------
     Las Vegas Strip                     $11,818   $231    $9,073   $21,122
     Other Nevada                             --     --       (18)      (18)
     MGM Grand Detroit                       684     --         3       687
     Mississippi                              --     --        13        13
     Unconsolidated resorts                2,424     --        --     2,424
                                       ---------   -----   ------   -------
                                          14,926    231     9,071    24,228
     Corporate and other                     118     --     3,617     3,735
                                       ---------   -----   ------   -------
                                         $15,044   $231   $12,688   $27,963
                                       =========   =====   ======   =======



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

                        Six Months Ended June 30, 2007
               -----------------------------------------------

                                        Preopening         Property
                                           and     Restruc- trans-
                                         start-up  turing  actions,
                                         expenses  costs      net    Total
                                        ---------  ------   ------  -------
     Las Vegas Strip                      $15,603    $-     $2,865  $18,468
     Other Nevada                             -       -      4,610    4,610
     MGM Grand Detroit                      5,584     -        -      5,584
     Mississippi                              -       -        601      601
     Unconsolidated resorts                 6,873     -        -      6,873
                                        ---------  ------   ------  -------
                                           28,060     -      8,076   36,136
     Corporate and other                      364     -       (650)    (286)
                                        ---------  ------   ------  -------
                                          $28,424    $-     $7,426  $35,850
                                        =========  ======   ======  =======


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

                                      Preopening Restruc- Property
                                         and     turing    trans-
                                       start-up  costs    actions,
                                       expenses (credit)   net     Total
                                      ---------  ------   ------  -------
     Las Vegas Strip                    $15,026  $1,035  $32,566  $48,627
     Other Nevada                            --      --      (21)     (21)
     MGM Grand Detroit                    1,277      --        1    1,278
     Mississippi                             --      --       10       10
     Unconsolidated resorts               4,645      --       --    4,645
                                      ---------  ------   ------  -------
                                         20,948   1,035   32,556   54,539
     Corporate and other                    277      --    3,617    3,894
                                      ---------  ------   ------  -------
                                        $21,225  $1,035  $36,173  $58,433
                                      =========  ======   ======  =======



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

                                Three Months Ended     Six Months Ended
                              ---------------------  -----------------------

                                June 30,  June 30,   June 30,    June 30,
                                  2007      2006       2007        2006
                                --------  --------  ----------  ----------

  EBITDA                        $636,482  $575,215  $1,249,892  $1,136,001
    Depreciation and
     amortization               (167,509) (157,793)   (335,786)   (305,226)
                                --------  --------  ----------  ----------
  Operating income               468,973   417,422     914,106     830,775
                                --------  --------  ----------  ----------

  Non-operating income
   (expense):
    Interest expense, net       (183,429) (190,776)   (367,440)   (383,625)
    Other                             (9)   (2,488)     (5,186)     (6,382)
                                --------  --------  ----------  ----------
                                (183,438) (193,264)   (372,626)   (390,007)
                                --------  --------  ----------  ----------
  Income from continuing
   operations
   before income taxes           285,535   224,158     541,480     440,768
    Provision for income taxes  (102,637)  (80,817)   (195,572)   (157,665)
                                --------  --------  ----------  ----------
  Income from continuing
   operations                   $182,898  $143,341    $345,908    $283,103
                                ========  ========  ==========  ==========



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

                       Three Months Ended June 30, 2007
                    ----------------------------------------

                                                    Depreciation
                                         Operating      and
                                           income   amortization   EBITDA
                                          ---------    --------    --------
     Las Vegas Strip                       $397,731    $133,493    $531,224
     Other Nevada                             4,490       1,590       6,080
     MGM Grand Detroit                       22,204       5,912      28,116
     Mississippi                             12,781      15,126      27,907
     Unconsolidated resorts                  92,952          --      92,952
                                          ---------    --------    --------
                                            530,158     156,121     686,279
     Stock compensation                                             (11,060)
     Corporate and other                                            (38,737)
                                                                   --------
                                                                   $636,482
                                                                   ========



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

                                                    Depreciation
                                         Operating      and
                                           income   amortization   EBITDA
                                          ---------    --------    --------
     Las Vegas Strip                       $380,645    $137,470    $518,115
     Other Nevada                             4,642       2,425       7,067
     MGM Grand Detroit                       35,262       3,237      38,499
     Mississippi                              2,534       5,497       8,031
     Unconsolidated resorts                  55,144          --      55,144
                                          ---------    --------    --------
                                            478,227     148,629     626,856
     Stock compensation                                             (15,835)
     Corporate and other                                            (35,806)
                                                                   --------
                                                                   $575,215
                                                                   ========



                       Six Months Ended June 30, 2007
                  ----------------------------------------

                                                 Depreciation
                                       Operating     and
                                         income  amortization    EBITDA
                                        ---------   --------    ---------
    Las Vegas Strip                      $812,676   $267,390   $1,080,066
    Other Nevada                              619      3,465        4,084
    MGM Grand Detroit                      51,068     11,874       62,942
    Mississippi                            33,018     30,292       63,310
    Unconsolidated resorts                131,094         --      131,094
                                        ---------   --------    ---------
                                        1,028,475    313,021    1,341,496
    Stock compensation                                            (24,640)
    Corporate and other                                           (66,964)
                                                                 --------
                                                               $1,249,892
                                                                =========



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

                                                  Depreciation
                                       Operating      and
                                        income    amortization   EBITDA
                                      ---------     --------    ---------
     Las Vegas Strip                    $775,996     $265,500   $1,041,496
     Other Nevada                          7,861        4,781       12,642
     MGM Grand Detroit                    69,445        6,154       75,599
     Mississippi                           6,393       10,997       17,390
     Unconsolidated resorts               89,340           --       89,340
                                       ---------     --------    ---------
                                         949,035      287,432    1,236,467
     Stock compensation                                            (36,931)
     Corporate and other                                           (63,535)
                                                                  --------
                                                                $1,136,001
                                                                ==========



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


                                               June 30,         December 31,
                                                 2007               2006
                                               ---------          ---------

                                  ASSETS
  Current assets:
      Cash and cash equivalents                 $294,609           $452,944
      Accounts receivable, net                   333,295            362,921
      Inventories                                125,485            118,459
      Income tax receivable                           --             18,619
      Deferred income taxes                       69,909             68,046
      Prepaid expenses and other                 103,564            124,414
      Assets held for sale                        55,068            369,348
                                               ---------          ---------
            Total current assets                 981,930          1,514,751
                                               ---------          ---------

  Real estate under development                  344,994            188,433

  Property and equipment, net                 18,755,673         17,241,860

  Other assets:
      Investments in unconsolidated
       affiliates                              1,124,836          1,092,257
      Goodwill                                 1,269,591          1,300,747
      Other intangible assets, net               361,811            367,200
      Deposits and other assets, net             659,336            440,990
                                               ---------          ---------
            Total other assets                 3,415,574          3,201,194
                                               ---------          ---------
                                             $23,498,171        $22,146,238
                                              ==========         ==========



                     LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
      Accounts payable                          $149,868           $182,154
      Construction payable                       357,263            234,486
      Income taxes payable                       104,976                -
      Accrued interest on long-term
       debt                                      250,212            232,957
      Other accrued liabilities                  960,037            958,244
      Liabilities related to assets
       held for sale                               3,456             40,259
                                               ---------          ---------
            Total current liabilities          1,825,812          1,648,100
                                               ---------          ---------

  Deferred income taxes                        3,359,077          3,441,157
  Long-term debt                              13,560,785         12,994,869
  Other long-term obligations                    421,403            212,563
  Stockholders' equity:
      Common stock, $.01 par value:
       authorized 600,000,000 shares,
      issued 365,720,069 and
       362,886,027 shares and
       outstanding
      284,243,042 and 283,909,000
       shares                                      3,657              3,629
      Capital in excess of par value           2,933,892          2,806,636
      Treasury stock, at cost:
       81,477,027 and 78,977,027
       shares                                 (1,771,707)        (1,597,120)
      Retained earnings                        3,164,334          2,635,989
      Accumulated other comprehensive
       income                                        918                415
                                               ---------          ---------
            Total stockholders' equity         4,331,094          3,849,549
                                               ---------          ---------
                                             $23,498,171        $22,146,238
                                              ==========         ==========

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/