LAS VEGAS—Mandalay Resort Group [NYSE: MBG] , a leading owner and operator of world-class entertainment destinations, announced plans today to develop a new 1,122 all-suite, 41-story tower connected to the Mandalay Bay Resort & Casino at the southern end of the Las Vegas Strip. Groundbreaking for the project will begin in September 2002, with a targeted opening date of October 2003. Upon completion, the new tower`s 750-square foot suites will be the largest average room size of any all-suites project on the Las Vegas Strip.

The new tower will specifically target attendees to the Company`s Mandalay Bay Convention Center, which will open in January 2003. “This project will further enhance the power of our Mandalay Mile as the most integrated resort complex in the world. It is yet another asset that will drive our long term performance by further segmenting our room offerings and driving REVPAR gains,” said Glenn Schaeffer, president of the Mandalay Resort Group. The Mandalay Mile includes the Mandalay Resort & Casino, Luxor, and Excalibur.

Specific features of the tower include:

1,122 suites—Average suite size of 750 square feet—24 hospitality suites—A top-tier spa and fitness center—A full-service business center—Restaurant and lounge—Complete access to all restaurants, shops and clubs at Mandalay Resort & Casino

According to management, the new suites will support the strong demand and advance bookings at the new Convention Center, and is part of the Company`s plan to maximize the operating leverage that comes with controlling 18,585 total rooms on the Las Vegas Strip.

“The Convention Center will be one of our principal growth engines, driving future results for the company. Among other positive effects, it fills a gap in our portfolio of non-gaming amenities and enhances, to an extent, our visibility as it relates to financial performance on the Strip. It is this type of consistency, over time, that is the singular focus of our management team,” added Schaeffer.

The company announced in March that the Convention Center has firm bookings of six shows in its opening weeks. Since that announcement, three additional shows have been scheduled: the Promotional Products Association International Expo (Jan. 13-17); the Exhibitor Show (March 24-26) and the International Sign Association Expo (April 3-5).

Mandalay Resort Group [NYSE: MBG] is a leading owner and operator of world-class entertainment and business destinations serving multiple segments of the market with casinos, hotels and entertainment attractions in key regions of the United States. The company owns and operates 11 properties in Nevada: Mandalay Bay Resort & Casino, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus Circus-Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also owns and operates Gold Strike, a hotel/casino in Tunica County, Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.

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