MGM MIRAGE Reports First Quarter Results

reported first quarter diluted earnings per share of 51 cents on net income of
$82 million, compared with 52 cents per diluted share on net income of
$83.9 million in the 2001 first quarter.  Diluted earnings per share before
preopening expenses and extraordinary items was 52 cents in the 2002 first
quarter, compared with 53 cents per diluted share in the 2001 quarter.  Net
income before preopening expenses and extraordinary items during the 2002
quarter was $83.4 million, compared with $85.2 million in the prior year`s

Net revenue was down 4% to $1.02 billion in the 2002 quarter, versus
$1.07 billion in the comparable 2001 quarter.  For the three months ended
March 31, 2002, operating cash flow (“EBITDA”) was $324.1 million when
compared with $343.6 million in the prior year`s quarter.  The Company
recorded a 31.7% EBITDA margin in the 2002 first quarter, down slightly from
32.1% in the 2001 quarter.

The 2002 first quarter results significantly exceeded the Company`s 2001
fourth quarter.  Room revenue continued to show sequential improvement as
hotel occupancy rebounded to 89.7% in the 2002 quarter from 82.7% achieved in
the 2001 fourth quarter, albeit lower than 91.4% recorded in the 2001 first
quarter.  For the three months ended March 31, 2002, average daily room rate
(“ADR”) was $101 compared with the 2001 fourth quarter of $93 and the prior-
year first quarter of $110.  As a result, revenue per available room
(“REVPAR”) improved from the 16% year-over-year decline in the 2001 fourth
quarter to a 10% year-over-year decline in the 2002 first quarter.  The
increase in hotel occupancy led to continued improvement in casino, food and
beverage and retail revenue.

“These results reflect the ongoing improvement of the Company`s Las Vegas
resorts and Beau Rivage as well as the strong operating performance of MGM
Grand Detroit,” said MGM MIRAGE Chairman and CEO Terry Lanni.  “While we are
not yet at normalized operational levels at our Las Vegas resorts, this
marketplace has proven itself far more resilient than most had predicted,” Mr.
Lanni said.

“Our first quarter results reflect our efforts to increase revenues,
expand our customer base and maximize our competitive advantages as the
hospitality industry sees a resurgence,” said MGM MIRAGE President and CFO Jim
Murren.  “We expect to further broaden our business through our technology
initiatives, most notably our successfully launched affinity program, Players
Club.  Upon full integration, Players Club will link eight properties with
more than 18,000 slot machines and provide our table game and slot customers
with greater incentives to enjoy our properties.  Our expanding free cash flow
has enabled the Company to further strengthen its balance sheet in the
quarter.  Including amounts repaid in April, we have reduced our outstanding
debt by an additional $200 million this year,” Mr. Murren said.