MGM MIRAGE Reports Record Third Quarter Revenue, Cash Flow, And Net Income

MGM MIRAGE (NYSE: MGG) today reported
earnings of 42 cents per diluted share for the three months ended
September 30, 2000, compared with 10 cents per diluted share in the 1999 third
quarter.  Excluding preopening expenses and extraordinary items, the company
reported a 29% increase in earnings per share to 45 cents per share for the
2000 third quarter, up from 35 cents per share in the prior year`s quarter.
These third quarter results exceeded the average estimate of 36 cents a share
from analysts polled by First Call Corp.

Net income before preopening expenses and extraordinary items soared
73% to $73.2 million in the 2000 quarter from $42.4 million in the prior
year`s quarter as a result of record revenue and operating cash flow
(“EBITDA”).  These results reflect the continued strong performance from the
company`s casino and hotel operations, improved operating margins, and the
impact of the historic acquisition of Mirage Resorts, Incorporated (“Mirage
Resorts”) on May 31, 2000.  Revenue and EBITDA rose 172% and
171%, respectively, representing the seventh consecutive quarterly increase in
revenue and EBITDA on a year-over-year basis.

On a pro forma basis to account for the Mirage Resorts acquisition in both
years, revenue grew 8% to $1.1 billion while EBITDA rose 26% to
$335.8 million, despite a slightly lower table game hold percentage in the
recent period.  Pro forma same-store net revenue increased 4% while same-store
EBITDA grew an impressive 21%.

“Our business strategies are working as evidenced by the exceptional
same-store operating performance across our broad-based portfolio,” said
J. Terrence Lanni, Chairman of the Board of MGM MIRAGE.  “We have experienced
strong occupancy company-wide in the current quarter, and future booking
trends across all segments look solid going forward.”

Third Quarter Company Highlights:


—Net revenue was an all-time record high of $1.1 billion
—Earnings rose 29% to 45 cents per diluted share before preopening
    expenses and extraordinary items
—EBITDA increased to an all-time record $335.8 million
—All operating properties produced significant free cash flow
—MGM MIRAGE announced agreements to sell approximately $66 million in
    non-strategic assets bringing the total assets sold or under contract
    to approximately $220 million since the acquisition of Mirage Resorts

—Outstanding debt has been reduced by $470 million through the use of
    free cash flow and upon completion of previously announced asset sales

—MGM MIRAGE achieved cost savings ahead of targeted results
—MGM MIRAGE sold its interest in the MGM Grand - Bally`s Monorail to
    make way for a four mile public transit elevated monorail system which
    will connect 8 hotel/casinos and the Las Vegas Convention Center

—MGM MIRAGE and Boyd Gaming broke ground on the joint venture Borgata
    resort in Atlantic City