MGM MIRAGE Reports Fourth Quarter And Year End Results

MGM MIRAGE (NYSE: MGG) today
reported earnings before nonrecurring expenses of 18 cents per diluted share
for the 2001 fourth quarter, compared with 43 cents per diluted share in the
2000 quarter.  Consolidated net revenue was down 13% to $896.3 million in the
2001 quarter compared with $1.03 billion in the comparable 2000 quarter.  For
the three months ended December 31, 2001, operating cash flow (“EBITDA”) was
$228.2 million when compared with $317.3 million in the prior year`s quarter.
Net income before nonrecurring expenses during the 2001 quarter was
$27.9 million compared with $69.2 million in the prior year`s quarter.
Including nonrecurring expenses, the Company reported net income of
$23.7 million, or 15 cents per diluted share compared with $68 million, or
42 cents per diluted share in the prior year`s quarter.

While these results reflect a substantial decline in business activity at
the Las Vegas resorts following September 11, 2001, the Company`s hotel and
casino volumes steadily improved throughout the fourth quarter.  During the
2001 fourth quarter, weekend occupancy quickly rebounded to prior year levels,
while comparative trends improved during the mid-week timeframe.  Improved
occupancy was achieved in part through a comprehensive marketing strategy
designed to maximize business volumes in our resorts.  This recovery in
customer traffic enabled the Company to continue to improve its casino, food
and beverage and retail revenue.

“Revenue and cost strategies deployed in the weeks following September
11th have had the desired results.  Our focus on rebuilding our business while
keeping a keen eye on costs was intended to return our operations to previous
levels as quickly as possible,” said Terry Lanni, Chairman and Chief Executive
Officer of MGM MIRAGE.  “While mindful of the challenges inherent in a global
economic slowdown and continued consumer sensitivity to travel, current trends
in our resorts indicate that casino and non-casino business should continue to
improve throughout 2002.”

2001 Company Highlights:
—Revenues grew to $4.01 billion, up 29%—EBITDA increased 14% to $1.13 billion—Bellagio became the largest hotel ever awarded the AAA Five Diamond
      Award


—Reduced debt by $422 million, bringing the total debt reduction to
      $949 million since the acquisition of Mirage Resorts
  —Successfully amended and extended our $800 million 364-Day Credit
      Facility in April
  —Issued $400 million Senior Subordinated 10-year Notes at 8.375% in
      February

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—Extinguished the $1.3 billion Term Loan using free cash flow and bond
      proceeds
  —Purchased 2.2 million shares of Company common stock at an average
      cost of $20.47 per share

—Sold $27 million in non-strategic assets, bringing the total assets
      sold since the Mirage acquisition to $256 million
  —Completed the integration of the Mirage acquisition
  —Awarded Internet Gaming license from the Isle of Man

—Successfully opened the Mirage Events Center at The Mirage, ESPNZone
      and Coyote Ugly at New York - New York, Kahunaville at Treasure
      Island, NOBHILL and Pearl at the MGM Grand and Nectar and Light at
      Bellagio

—Continued the development of our player affinity program scheduled to
      debut in 2002

—Construction of Borgata, our 50% owned resort, continues to be on
      time and on budget

For the twelve months ended December 31, 2001, the Company reported
earnings before nonrecurring expenses of $1.37 per diluted share compared with
$1.70 per diluted share in the prior year.  Consolidated net revenue increased
29% from $3.11 billion in 2000 to $4.01 billion in 2001.  EBITDA for the
twelve months ended December 31, 2001 was $1.13 billion, up 14% when compared
with $997.1 million in 2000.  Net income before nonrecurring expenses was
$220.5 million during 2001 compared with $251.6 million in the prior year.
Including nonrecurring expenses, the Company reported net income of
$169.8 million, or $1.06 per diluted share compared with $160.7 million, or
$1.09 per diluted share in the prior year.  The 2001 operating results reflect
the full year impact of the Mirage acquisition, which was completed in May
2000.

“It now seems clear that no city in the United States has rebounded as
quickly and profoundly as Las Vegas.  We own the resorts of choice in that
marketplace,” said Jim Murren, President and CFO of MGM MIRAGE.  “Our
financial condition is solid.  We have dramatically reduced debt over the past
year and a half, including $100 million this month alone.  Our cost
containment strategies are aimed at improving margins throughout the year.  We
intend to utilize our free cash flow to further deleverage throughout 2002.”
 
As of December 31, 2001, the Company had approximately $727 million of
available liquidity under its various lines of credit.  The Company has no
public debt maturities until 2005.
 
“Our business has been far more resilient than anyone expected,” said Mr.
Lanni.  “We will continue to capitalize on our competitive advantages and lead
the recovery currently underway in Las Vegas, while not losing sight of the
myriad of growth opportunities afforded our Company both nationally and
internationally.”

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