MGM MIRAGE (NYSE: MGG) today reported
earnings before nonrecurring expenses of 19 cents per diluted share for the
2001 third quarter, compared with 45 cents per diluted share in the 2000
quarter.  Consolidated net revenue was down 5.3% to $993 million in the 2001
quarter compared with $1.05 billion in the comparable 2000 quarter.  For the
three months ended September 30, 2001, operating cash flow (“EBITDA”) was
$236.5 million when compared with $336 million in the prior year`s quarter.
Net income before nonrecurring expenses during the 2001 quarter was
$30.1 million compared with $73.2 million in the prior year`s quarter.

These results reflect a substantial decline in business volumes at the
Company`s hotel and casino resorts immediately after the terrorist attacks of
September 11, 2001.  The Company`s hotels on the Las Vegas Strip averaged an
unprecedented low 64% occupancy level from September 11th through September
30th.  This reduction in customer traffic also resulted in lower casino, food
and beverage and retail revenue.  Mid-week occupancy levels have now
significantly improved, and weekend occupancy has nearly returned to
pre-attack levels, albeit at reduced rates.  Accordingly, casino and
non-casino revenue continue to rebound.

“Prior to the events of September 11th, our Company was on track to
achieve another strong quarterly operating performance.  Obviously the result
of the terrorist attacks had a profound impact on the hotel and travel
industry and our business,” said Terry Lanni, Chairman and Chief Executive
Officer of MGM MIRAGE.  “Our management team undertook a detailed analysis of
our current operations in terms of the impact of September 11th.  To respond
to these historic challenges, we implemented cost containment strategies which
included a significant reduction in payroll and a refocusing of several of our
marketing programs.  The objective of this approach is to rebuild revenue and
profitability in order to bring back as many of our displaced employees as
possible.  Current trends indicate our initiatives are working, as we are once
again profitable and we have recalled many of our employees.  We expect to be
profitable throughout the fourth quarter, the degree of which will depend on
business volumes which have continued to improve since late September.  Based
on early indications, we are optimistic that this recovery will accelerate
into 2002.”

Layoffs and terminations related to the payroll deductions resulted in an
after-tax restructuring charge of $12.9 million (8 cents per share).  The
Company has achieved reductions in most operating expense categories,
including payroll and purchasing, and has restructured several corporate
functions.  Management also reassessed the carrying value of certain assets
and accordingly recognized an after-tax impairment loss of $30.8 million
(19 cents per share) for the three months ended September 30, 2001.  Including
these nonrecurring items, the Company reported a loss of 9 cents per share for
the three months ended September 30, 2001 compared with earnings of 42 cents
per share during the prior year`s quarter.

During the three months ended September 30, 2001, the Company`s free cash
flow enabled it to reduce debt by $103 million.  Since the acquisition of
Mirage Resorts on May 31, 2000, the Company has reduced its outstanding debt
balance by $947 million.

“Despite the events of September 11th, our Company remains financially
strong.  We currently have over $730 million of available liquidity with no
public debt maturities until 2005.  During the quarter we utilized free cash
flow to repurchase approximately 2.2 million shares under our 10 million share
repurchase program at an average cost of $20.47 per share,” said Jim Murren,
President and CFO of MGM MIRAGE.  “The Company has completed several important
cost saving programs and has significant flexibility in its capital
requirements over the next few years.  Our overall business objectives remain
the same.  We will continue to grow our business, manage our cost structure
and maximize free cash flow for debt reductions, internal growth, acquisitions
and share repurchases.”

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