MGM MIRAGE Reports Fourth Quarter

MGM MIRAGE today reported its fourth quarter and full year 2003 financial
results. Adjusted earnings from continuing operations per diluted share
(“Adjusted EPS”) increased to $0.38 in the fourth quarter of 2003 from
$0.27 in the 2002 quarter. A lower provision for doubtful accounts
resulting from strong collection activity contributed approximately $0.05
of this increase. The remaining increase resulted from strong visitor
levels and guest spending, despite having 17% of Bellagio`s standard rooms
unavailable. As of January 27, 2004, the consensus earnings estimate for
the quarter was $0.29 per share, as reported on First Call. For the full
year, Adjusted EPS was $1.56 compared to $1.85 in 2002.

Adjusted EPS (and Adjusted Earnings) excludes discontinued operations,
preopening and start-up expenses, restructuring costs, property
transactions, net management agreement termination fee, reversal of
certain tax reserves, and loss on early retirement of debt(1). On a GAAP
(Generally Accepted Accounting Principles) basis, diluted earnings per
share from continuing operations increased to $0.60 for the fourth quarter
of 2003 from $0.27 in the 2002 quarter. GAAP diluted EPS, including the
results of discontinued operations, was $0.62 in the 2003 period versus
$0.25 in 2002.

“Our fourth quarter performance further validates our business model and
the hard work and dedication of our employees,” said Terry Lanni, MGM
MIRAGE`s Chairman and CEO. “Our resorts hold a clear competitive advantage
in times of improving visitation and consumer spending. We believe the
enhancements completed in 2003 and underway this year will further
strengthen our market leading position.”

2003 Company Highlights * Generated net revenues of over $3.9 billion, up
3% from 2002; * Borgata opened on July 3, 2003, and has performed well in
its first six months; * Opened Zumanity, by Cirque du Soleil, at New
York-New York, along with the Irish pub Nine Fine Irishmen; * Opened Tabu,
the Ultra-Lounge, Fiamma Trattoria, by award-winning New York chef Stephen
Hanson, and SeaBlue, the latest restaurant from Michael Mina, at MGM Grand
Las Vegas; * Introduced the new logo and branding campaign for “TI”,
Treasure Island, and opened the “Sirens of TI” show at the front of the
resort; * Completed the rollout of Players Club, the Company`s exclusive
player rewards program; * Converted a significant portion of the Company`s
installed slot base to IGT`s EZ-Pay(TM) cashless gaming system; * Invested
$588 million of capital in the Company`s resorts, including the Bellagio
room remodel and expansion project, new theatres for Zumanity at New
York-New York and the Cirque du Soleil show scheduled to open at MGM Grand
Las Vegas in 2004, new slot technology, and contributions to Borgata; *
Made several strategic investments in the United Kingdom in anticipation
of reforms to gaming laws and the potential for large- scale casino resort
development; * Repurchased 13.3 million shares of Company common stock for
$443 million. In November 2003, the Company`s Board of Directors approved
a new 10 million share repurchase program, of which 8 million shares
remained available for purchase as of December 31, 2003; * Entered into a
new five year, $2.5 billion senior credit facility, consisting of a
revolving credit facility of $1.5 billion and a term loan of $1.0 billion;
* Issued $600 million of 6% Senior Notes due 2009; * Reached agreement to
sell the Golden Nugget resorts in Las Vegas and Laughlin for $215 million
—the transaction closed in January 2004; * Completed the sale of 315
acres of land in North Las Vegas, Nevada, for $55 million in October 2003.


Net revenue in the fourth quarter increased 6% from the 2002 fourth
quarter. This increase was due to strong casino revenues in all of our
markets and increased spending by our guests in non-gaming areas. Results
were especially strong considering the impact of the Bellagio standard
room remodel project, which caused 17% of the resort`s standard rooms to
be out of service during the quarter.

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Casino revenue increased by 7% in the 2003 quarter. Table games volume,
including baccarat, was up 4% from the prior year`s quarter, led by a 5%
increase at the Company`s Las Vegas Strip resorts. Table games volumes
benefited from an increase in national high-end play over prior year due
to effective marketing programs and the continued improvement in economic
conditions. Also as a result of the broad economic recovery, and strong
collection experience in the quarter, the Company recorded a significantly
lower provision for doubtful accounts compared to the 2002 quarter. Table
games hold percentages were within a normal range for both periods and
were comparable between periods. Company-wide slot revenue in the quarter
was up 7% from 2002. Slot revenue at the Company`s Las Vegas Strip resorts
was up 9%, led by double-digit increases at MGM Grand Las Vegas and New
York-New York. The Mirage, TI and MGM Grand Detroit all realized high
single-digit percentage increases in slot revenues. MGM Grand Detroit
continues to out- perform the overall Detroit market. The Company`s
exclusive player rewards program, Players Club, is now successfully
deployed at the Company`s major resorts.

Non-casino revenue was up 4% in the quarter. Hotel revenue was up 3%, with
higher occupancy of 88% in the fourth quarter of 2003 versus 85% in 2002,
and a higher average daily room rate (“ADR”) of $121 versus $120 in 2002.
As a result, revenue per available room (“REVPAR”) was $107, up 5% over
REVPAR of $102 in 2002. REVPAR at the Company`s Las Vegas Strip resorts
increased 5%, but would have increased 7% adjusting for the approximately
17% fewer available standard rooms at Bellagio during the 2003 quarter.
This performance was particularly strong given relatively soft convention
attendance during the key November 2003 period.

Food and beverage, entertainment, retail and other revenues were up 5% in
the 2003 quarter, despite the closure of the Siegfried & Roy show in early
October 2003. The increase resulted primarily from the increases in hotel
volumes, as well as the addition of Zumanity and Nine Fine Irishmen Pub at
New York-New York, Tabu, Fiamma Trattoria and SeaBlue at MGM Grand Las
Vegas, and continued improvement in visitor spending in non-gaming areas.

EBITDA was up 17% for the quarter, reflecting the operating trends
described above, the lower provision for doubtful accounts and the results
from Borgata, offset by higher corporate expense. Operating income
increased 49% over the 2002 quarter, which includes the gain on sale of
North Las Vegas land.
Fourth quarter Adjusted Earnings increased by 30% compared to 2002 due to
the EBITDA performance, offset by higher net interest expense. Net
interest expense increased due to higher average borrowings and the
cessation of interest capitalization on the Company`s investment in
Borgata, which opened on July 3, 2003.

For the fourth quarter of 2003, Adjusted Earnings excluded a net benefit
of $43.0 million ($32.6 million, net of tax) related to the following
excluded items:
* Net gains on property transactions of $31.5 million ($20.5 million, net
of tax), including the $36.7 million gain on sale of land in North Las
Vegas, offset by $2.2 million of demolition costs, primarily at Bellagio
in connection with the Spa Tower expansion, $1.4 million of theatre assets
written off at The Mirage in connection with the closure of the Siegfried
and Roy show, and other net losses on disposal of assets; * Restructuring
costs of $1.4 million ($0.9 million, net of tax), primarily related to the
closure of the Siegfried and Roy show; * Preopening and start-up expenses
of $0.5 million ($0.3 million, net of tax); * Reversal of tax reserves of
$13.4 million related to certain prior tax years for which IRS audits have
been completed and statutes of limitation have expired during the quarter.

In the fourth quarter of 2002, items excluded in the determination of
Adjusted Earnings included $5.4 million ($3.5 million, net of tax) of
preopening and start-up expenses, primarily related to Borgata and Players
Club; a restructuring credit of $6.6 million ($4.3 million, net of tax)
consisting of a $9.9 million reversal of lease buyout accruals and $3.3
million of contract termination costs; and property transactions, net of
$2.1 million ($1.4 million, net of tax) related to assets abandoned or
replaced in connection with construction projects.

Income (loss) from discontinued operations includes the results of MGM
MIRAGE Online and the Golden Nugget Las Vegas and Golden Nugget Laughlin
resorts. Pretax income from discontinued operations was $6 million in the
2003 quarter compared to a loss of $3 million in the 2002 quarter. The
prior year quarter included significant expenses related to MGM MIRAGE
Online`s start-up efforts. Interest allocated to discontinued operations
was $2 million for both periods.
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