MGM MIRAGE Reports Record Second Quarter Results

reported second quarter diluted earnings per share of 56 cents before
preopening expenses, restructuring credits and fees received from the buyout
of its South Africa management agreement.  These earnings are an all-time
record for the Company and an increase of 17% compared with 48 cents earned on
a similar basis in the 2001 quarter.  Income before preopening expenses,
restructuring credits and the South Africa fees was an all-time record high of
$90.5 million, compared with $77.3 million in the prior year`s quarter.
Before adjusting for these items, net income was $101.9 million or 63 cents
per diluted share during the 2002 second quarter, compared with net income of
$76.6 million or 47 cents per diluted share in the 2001 second quarter.

Excluding $11.4 million received from the South Africa transaction, net
revenue was down 2% to $1.03 billion from $1.05 billion in the 2001 quarter.
For the three months ended June 30, 2002, earnings before interest, taxes,
depreciation and amortization, restructuring, preopening expenses and
corporate expense (“EBITDA”) were $336.0 million when compared with
$324.8 million in the year-ago period.  Excluding South Africa`s results from
both periods, EBITDA was $324.6 million in the 2002 quarter, versus
$323.5 million in the prior year`s second quarter, and the Company recorded a
31.5% EBITDA margin in the 2002 second quarter, up from 30.8% in the 2001
second quarter.

Second Quarter Company Highlights

  —Net revenue and EBITDA (excluding South Africa) were $1.03 billion and
    $325 million, respectively;
  —Set all-time record net income and earnings per share;
  —Reduced debt by $153 million during the quarter, resulting in total
    debt reductions of $304 million this year and $1.25 billion since the
    acquisition of Mirage Resorts, Incorporated in May 2000;
  —Repurchased one million shares of Company common stock during the
  —Completed the sale of our South Africa interests and received
    $11.4 million for the early buyout of the Company`s management
  —Successfully launched our Players Club affinity program at The Mirage
    and Treasure Island;
  —Construction of Borgata, our 50% owned resort, continues on schedule
    and on budget for a summer 2003 opening;
  —Advanced the design phase for a wholly-owned resort at Renaissance
    Pointe in Atlantic City;
  —Announced two agreements with Cirque du Soleil for the creation of new
    shows at New York - New York and MGM Grand Las Vegas;

“Our results again exhibited remarkable resiliency against the backdrop of
an uncertain economy,” said MGM MIRAGE Chairman and CEO Terry Lanni.  “The
operating performance across our portfolio of properties was strong as we
continue to produce industry leading margins.  Our properties are in
outstanding physical condition and are poised to benefit from strategic
entertainment and technology investments, including the continued
implementation of Players Club that will drive increased customer traffic,”
Mr. Lanni said.


The Company`s 2002 second quarter results continue to show sequential
operating improvement in a trend that began in late 2001.  Room revenue
continued to strengthen to more normalized levels as a result of improved
hotel occupancy.  Hotel occupancy of 91.5% in the 2002 second quarter rose
when compared with 89.7% and 82.7% in the first quarter 2002 and fourth
quarter 2001, respectively, and was down slightly when compared with 93.4% in
the 2001 second quarter.  For the three months ended June 30, 2002, the
average daily room rate (“ADR”) was $106, even with the prior year`s second
quarter, and up $5 and $13 when compared with the first quarter 2002 and
fourth quarter 2001, respectively.

As a result, revenue per available room (“REVPAR”) improved from the
16% and 10% year-over-year declines in the 2001 fourth quarter and 2002 first
quarter, respectively, to a 2% decline in the 2002 second quarter.  These
improving hotel trends have led to continued improvement in food and beverage,
entertainment and retail revenue.  Casino revenue declined by 3% in the 2002
second quarter versus the 2001 quarter.  A reduction in table game volume was
offset in part by an increase in slot volume.  Hold percentages were normal in
both periods.

“Our company grows stronger every day.  Free cash flow from operations
allowed us to accelerate the pace of our debt reductions even after the
repurchase of one million shares of our common stock during the quarter,” said
MGM MIRAGE President, CFO and Treasurer Jim Murren.  “Our balance sheet has
improved dramatically over the past year, a fact recognized by the rating
agency Standard & Poor`s which rates us investment grade.  Our financial
objectives continue to be focused on expanding margins, reducing debt, growing
revenue profitably and effectively allocating capital,” Mr. Murren said.