MGM Mirage Take Strategic Steps

MGM MIRAGE (NYSE: MGG) today
announced that as a result of anticipated expansion of gaming in numerous
jurisdictions, it was stepping up its strategic efforts to be positioned to
take advantage of such opportunities.

The Board of Directors of MGM MIRAGE has decided to direct its
considerable excess free cash flow to improve its market leading position at
its resorts in Las Vegas, Detroit and Biloxi as well as to employ greater
emphasis in achieving the company`s objective of strengthening its balance
sheet and repurchasing shares.  The company will temporarily suspend
development activities on a yet-to-be-named resort on land it owns at
Renaissance Pointe in Atlantic City.  The reduction in projected capital
expenditures in Atlantic City should result in a material increase in free
cash flow for debt reduction and share repurchases and to actively pursue
growth opportunities as they materialize.

“We remain extremely excited about Borgata, our 50%-owned resort in
Atlantic City and its financial potential,” said MGM MIRAGE Chairman and CEO
Terry Lanni.  “This exquisite resort continues to remain on schedule and on
budget for a summer 2003 opening.  Atlantic City is a vibrant market with an
assured path for growth.  Over the next few years more than 3,000 new rooms
(including Borgata`s 2,010 luxurious guestrooms) with exciting new amenities
will improve the market as Atlantic City makes the transition, with Borgata,
to a destination resort,” Lanni said.

“Our Company has a very disciplined approach to decision-making.  In light
of a very dynamic near term outlook, it is essential that MGM MIRAGE have the
ability to move aggressively when the right opportunities arise.  Now that the
extremely successful merger of MGM Grand and Mirage Resorts is well behind us,
we have expanded MGM MIRAGE Development and recently formed MGM MIRAGE Online
as corporate vehicles to explore this growth,” Lanni noted.

“Gaming is likely to expand overseas, as well as in several U.S. states
and on Native American lands.  As the highest quality company with substantial
management and financial resources, we intend to participate in this growth,”
Lanni said.

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As a result of this action, MGM MIRAGE also announced that effective
immediately it is suspending the capitalization of interest associated with
the development of its wholly-owned project at Renaissance Pointe in Atlantic
City and will expense such interest until the development process for this
project recommences.  This action will have no impact on operating cash flow
(EBITDA) but will reduce net earnings.  The capitalization of such interest
has benefited earnings per share by $.05 per quarter during the first nine
months of 2002.

MGM MIRAGE is an entertainment, hotel and gaming company headquartered in
Las Vegas, Nevada, which owns and/or operates through subsidiaries 15 casino
properties.  Its U.S. holdings include: Bellagio, the MGM Grand Hotel and
Casino - The City of Entertainment, The Mirage, Treasure Island, New
York - New York Hotel and Casino, the Boardwalk Hotel and Casino and 50% of
Monte Carlo, all located on the Las Vegas Strip; the Golden Nugget in Downtown
Las Vegas; Whiskey Pete`s, Buffalo Bill`s, the Primm Valley Resort and two
championship golf courses at the California/Nevada state line; the exclusive
Shadow Creek golf course in North Las Vegas; the Golden Nugget in Laughlin,
Nevada; the Beau Rivage resort on the Mississippi Gulf Coast; and the MGM
Grand Detroit Casino in Detroit, Michigan.  The Company is a joint venture
partner in Borgata at Renaissance Pointe, a resort under development in
Atlantic City, New Jersey.  Internationally, MGM MIRAGE owns and operates the
MGM Grand Hotel and Casino in Darwin, Australia.

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