MGM Grand, Inc. Reports First Quarter Results In Line With Pre-Announced Expectations

MGM Grand, Inc. (NYSE: MGG) today
reported its first quarter earnings of 28 cents per diluted share, for the
period ended March 31, 1998, compared with 51 cents per diluted share for the
1997 quarter.  Net income for the 1998 period was $16.3 million compared with
$30.2 million in the 1997 period.

Net revenues for the 1998 quarter were $179.8 million, compared with
$197.5 million during 1997, representing a 9% reduction.  As previously
announced, 1998 first quarter earnings and net revenues were primarily
affected by an unusually low hold percentage at MGM Grand Las Vegas and lower
earnings at the Company`s 50% owned New York - New York Hotel/Casino.  As a
result, operating cash flow (EBITDA) for the three months ended March 31,
1998, decreased 30.7% to $47.5 million, from the prior year`s first quarter of
$68.5 million.

“We are very excited about the future growth of our Company.  Our flagship
property in Las Vegas, luck factor excluded, continues to enjoy strong demand,
and more recently our hold percentages have strengthened.  Importantly, our
table game drop was basically even with the first quarter of 1997, while our
slot drop actually rose slightly year-over-year in spite of the competitive
marketplace.  We were gratified to receive the Detroit City Council approval
on April 9th for the development of a hotel/casino and entertainment complex
in Detroit, Michigan, and hope to open a temporary casino pending license
approval.  We continue to make positive strides in Atlantic City, New Jersey,
and plan to construct a hotel/casino resort in that market.  MGM Grand and its
partners have been awarded three gaming licenses in the Republic of South
Africa.  Two temporary casinos are now operating, and a third temporary casino
outside Johannesburg is expected to open by late 1998.  In addition, MGM Grand
Australia is performing above expectations,” said Alex Yemenidjian, President
and Chief Operating Officer of MGM Grand, Inc.

“In February we pre-announced earnings in a range of 25 cents to 35 cents
per share, driven by an extremely low table games hold percentage.  First
quarter results obscure the material improvements at the MGM Grand Las Vegas
as we transform the property into The City of Entertainment.  Our casino
renovation is on track and moving toward completion, and this has led to
considerably higher customer satisfaction, as evidenced by progressively
higher room occupancy rates in 1998.  This momentum is likely to continue now
that we have opened our state-of-the-art conference center to maximum
capacity, and as we roll-out our pool and spa amenities over the next couple
of months and open the MGM Grand Mansion in December,” said J. Terrence Lanni,
Chairman and Chief Executive Officer of MGM Grand, Inc.