MGM MIRAGE (NYSE: MGG) today
reported record third quarter diluted earnings per share of 51 cents before
preopening expenses, restructuring, write-downs and impairments and
extraordinary item compared with 19 cents in the 2001 quarter.  Income before
preopening expenses, restructuring, write-downs and impairments and
extraordinary item was $81.8 million for the three months ended September 30,
2002, compared with $30.1 million in the prior year`s quarter.  Including
these items, net income was $69.6 million or 43 cents per diluted share during
the 2002 third quarter, compared with a net loss of $14.4 million or a 9 cent
loss per diluted share in the 2001 third quarter.  These results represent
all-time third quarter highs in terms of net income and earnings per share.

Net revenue in the 2002 third quarter grew 2% to $1.01 billion from $993
million in the 2001 quarter.  For the three months ended September 30, 2002,
earnings before interest, taxes, depreciation and amortization, restructuring,
preopening expenses, write-downs and impairments and corporate expense
(“EBITDA”) was $306.3 million, up 30% when compared with $236.5 million in the
year-ago period.  The Company achieved a 30.3% EBITDA margin in the 2002 third
quarter, up from 23.8% in the 2001 third quarter.

Third Quarter Company Highlights:

— Net revenue and EBITDA were $1.01 billion and $306.3 million,
      respectively;

— Produced all-time record high net income and earnings per share;

— Reduced debt by $150 million during the quarter (including
      $43.5 million at Monte Carlo), resulting in total debt reductions of
      $454 million this year and $1.4 billion since the acquisition of
      Mirage Resorts, Incorporated in May 2000;

— Repurchased 1,014,600 shares of Company common stock during the
      quarter;

— Successfully launched our Players Club affinity program at MGM Grand
      Detroit and MGM Grand Las Vegas;

— Construction of Borgata, our 50% owned resort, continues on schedule
      for a summer 2003 opening;

— Entered into a new Development Agreement with the City of Detroit for
      the development of a permanent hotel and casino complex;

— Announced an ambitious $375 million expansion at Bellagio, which
      includes the addition of a 925-room spa tower, significant expansion
      of the spa and salon as well as new meeting space and retail and
      restaurant outlets;

Quarterly comparisons are unique in this period due to the impact of the
events of September 11, 2001.  Results prior to September 11 were very strong,
while the events of September 11 had an immediate and profound impact on the
Company`s operating performance. “The strength of our third quarter demonstrates the resilience of MGM
MIRAGE, the power of our brands and the unwavering commitment of our people,”
said MGM MIRAGE Chairman and CEO Terry Lanni.  “Our Company is uniquely
positioned to build on this momentum as we focus on deploying capital to
maximize returns at our existing resorts and pursue new growth opportunities
as they materialize,” Mr. Lanni said.

The Company`s 2002 third quarter operating results continue to show
improvement led by increased non-casino revenues, up 4% compared with the 2001
third quarter, and slightly higher casino revenue in the 2002 quarter.  Room
revenue continued to strengthen as hotel occupancy rose from 87.7% in the 2001
third quarter to 89.2% in the 2002 third quarter.  For the three months ended
September 30, 2002, the average daily room rate (“ADR”) was $97, up $3 when
compared with the third quarter 2001.  As a result, revenue per available room
(“REVPAR”) increased 5% to $87 in the 2002 third quarter when compared with
the prior year`s quarter and showed continued improvement versus a 10% and 2%
year-over-year decline in the 2002 first and second quarter, respectively.
Occupancy, ADR and REVPAR were 94.6%, $95 and $89, respectively, in the
comparable 2000 quarter.  These improving hotel trends continue to have a
positive impact on food and beverage, entertainment and retail revenue.

Casino revenue was up slightly in the 2002 third quarter versus the 2001
quarter.  Table game volume and hold percentages were both down slightly from
prior year offset by an increase in slot revenues.

“We once again generated substantial free cash flow from operations which
we utilized to materially reduce debt as well as repurchase shares.  Our
financial flexibility has never been greater.  Our balance sheet is stronger
today than at any time since the combination of MGM Grand and Mirage Resorts,”
said MGM MIRAGE President, CFO and Treasurer Jim Murren.  “We will continue to
maximize our free cash flow by driving growth through technology initiatives
and selective investments in our resorts while we continue to focus on our
industry leading operating margins,” Mr. Murren said.

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