MGM MIRAGE and Mubadala Development Company Announce Plans to Develop Multi-Billion Dollar MGM Grand Abu Dhabi

November 07, 2007
Iconic mixed-use development to be first project of strategic partnership
PRNewswire-FirstCall
LAS VEGAS

MGM MIRAGE (NYSE: MGM) and Mubadala Development Company, a strategic investment and development firm wholly-owned by the government of Abu Dhabi, today announced plans to develop the MGM Grand Abu Dhabi, a mixed-use development that will serve as an iconic gateway to Abu Dhabi.

The MGM Grand Abu Dhabi will be strategically located at a prominent downtown waterfront site on Abu Dhabi Island. Once completed, the MGM Grand Abu Dhabi will feature unparalleled views of the city skyline as well as stunning panoramic views of the waterfront.

This initial phase will utilize 50 acres and consist of an MGM Grand hotel and two additional MGM branded luxury hotels each appealing to a distinct market segment. In total, more than 1,200 luxury guest accommodations will be developed in the first phase. The development will also feature a major entertainment facility, as well as high-end retail shops and world-class dining and convention facilities. The development will also integrate a variety of luxury residential offerings including waterfront residences with private yacht berths.

Mr Khaldoon Khalifa Al Mubarak, Chief Executive Officer and Managing Director of Mubadala, said, "This agreement is another exciting project in Mubadala's property development portfolio of innovative and commercially viable projects that contribute to the steady growth of Abu Dhabi's society. MGM MIRAGE's experience and luxury brands compliment Abu Dhabi's offering of the finest hospitality and entertainment experiences for both residents and tourists."

The cost of the project is expected to be approximately US $3 billion, will be wholly owned by Mubadala and is anticipated to open in 2012.

The MGM Grand Abu Dhabi will be the initial project of the newly formed strategic relationship between MGM MIRAGE and Mubadala. MGM MIRAGE Hospitality, a wholly owned subsidiary of MGM MIRAGE will serve as developer of the project and will brand the hotel properties and manage the development once open.

"Today's announcement reflects MGM MIRAGE's strategy to further our brand reach internationally," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "This magnificent development will leverage the capital resources and asset management proficiency of Mubadala with the world-renowned expertise of MGM MIRAGE in design, development and operation of exciting destination resorts.

"We are thrilled that our first project with Mubadala will create a destination and icon for Abu Dhabi. We see tremendous potential for this development and we are confident that this will be the first of many successful ventures with our Mubadala partners," said Mr. Lanni

Mubadala and MGM MIRAGE will continue to work together to pursue other real estate and hospitality opportunities on a project-by-project basis. These may take the form of development/management agreements, joint ventures and other forms of cooperation to be determined by the companies.

The project has been designed in line with the comprehensive urban plan, Plan Abu Dhabi 2030, recently announced to guide the sustainable development and ongoing evolution of Abu Dhabi as a global city.

Abu Dhabi is witnessing some of the most extensive real estate and hospitality developments in the world, as part of the overall tourism strategy for the Emirate. Currently under development are world-class attractions including the Guggenheim Abu Dhabi and the Louvre Abu Dhabi on Saadiyat Island, as well as leading hotels and world-class attractions on Yas Island, the new home of the Formula 1 Grand Prix.

Every aspect of the Emirate's tourism strategy and its implementation works towards strengthening the reputation of Abu Dhabi as an exclusive, high- end tourist destination. Delivering the highest quality in travel, accommodation, tourist attractions and importantly, business facilities, is central to achieving that vision.

About Mubadala Development Company:

Mubadala is a strategic investment and development company headquartered in Abu Dhabi, the capital of the United Arab Emirates. Mubadala's mission is to create and maximize long-term returns as an engaged investor in high performing businesses and promising new ventures that will benefit partners, the Emirate of Abu Dhabi and its people.

The company currently employs over 250 staff and is a principal investor in, and manager of, large-scale industry-leading ventures with significant interests in energy, heavy industry, telecommunications, infrastructure and aerospace.

Mubadala also manages a growing and diversified international portfolio with stakes in global operations including the US private equity firm Carlyle Group, Dutch fleet management giant LeasePlan Corporation and Italian car manufacturer Ferrari. Mubadala's joint ventures and wholly-owned companies are designed to generate strong financial returns for its partners as well as provide outstanding service and products for customers.

MGM MIRAGE (NYSE: MGM)(NYSE: -)(NYSE: News), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE is the largest landholder on the Las Vegas Strip, with significant undeveloped landholdings in both Las Vegas and Atlantic City. The Company recently opened MGM Grand Detroit, a major new resort; and will open another, MGM Grand Macau, before the end of the year. Also under development is CityCenter, a multi-billion dollar mixed-use urban development in the heart of the Las Vegas Strip. The Company has entered into an agreement with a subsidiary of Dubai World whereby MGM MIRAGE will contribute the CityCenter assets into a newly formed joint venture equally owned by the parties valued at $5.4 billion. MGM MIRAGE has signed a definitive agreement with Kerzner International Holdings Limited and Istithmar Hotels FZE to develop a new multi-billion dollar integrated resort property on the Las Vegas Strip. The Company has a separate definitive agreement with the Diaoyutai State Guesthouse in Beijing forming a strategic relationship to pursue non-gaming business opportunities in the People's Republic of China. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received 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.

First Call Analyst:
FCMN Contact: ymonet@mgmmirage.com

SOURCE: MGM MIRAGE

CONTACT: Investment Community, Dan D'arrigo, Chief Financial Officer,
+1-702-693-8895, or Media, Alan M. Feldman, Senior Vice President of Public
Affairs, +1-702-650-6947, afeldman@mirage.com, both of MGM MIRAGE

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