MGM MIRAGE 2007 ANNUAL REPORT “Vision with action can change the world.” -Futurist Joel Barker ...putting great ideas into Dear Shareholders, At MGM MIRAGE, by our defi nition, Vision is putting great ideas into action. That philosophy has been at the heart of our strategic plan for developing your Company into a global hospitality and real estate devel- opment company. In 2007, we made striking progress toward this goal. MGM MIRAGE is ideally positioned to excel domestically and internationally. We possess the premier resorts in our markets, each with a focused management team, and we continue moving forward on substantial growth initiatives. With those strong elements in place, we have a Vision of expanding the current limits of your Company—both in scope and scale. VISION IS MGM MIRAGE 02 2007 AR (RIGHT) CityCenter—Las Vegas, NV action ...stirring emotion letter to our shareholders (continued) On October 2, the new MGM Grand Detroit resort opened its doors, immediately becoming the premier hotel and entertainment destina- tion in the Midwest, delivering unrivaled rooms and suites, celebrity chef restaurants, the only resort-style spa in southeast Michigan and unmatched meeting and convention facilities. MGM Grand Detroit added 1,000 jobs to the company’s existing Michigan employee base, making it one of the area’s top employers. VISION IS MGM MIRAGE (LEFT) Cirque du Soleil—Love—The Mirage, Las Vegas, NV 2007 AR 05 letter to our shareholders (continued) On December 18, along with our partner Pansy Ho, your Company opened the stunning MGM Grand Macau, establishing a strong pres- ence in the fastest-growing gaming market in the world. We have plans to leverage the international appeal of the MGM Grand brand even further. Building on the well-deserved reputation born in Las Vegas and extended to Detroit, Macau and soon Atlantic City, we’ve announced our Vision for a non-gaming, MGM Grand branded resort development in Abu Dhabi, U.A.E.. With our partner Mubadala Development Company, a strategic investment and develop- ment fi rm wholly-owned by the government of Abu Dhabi, U.A.E., your Company will manage the development and operations of a $3 billion non-gaming, mixed-use resort in Abu Dhabi, U.A.E.. The initial phase of this project will include an MGM Grand hotel and two additional MGM branded luxury hotels, a major entertainment facility, high-end retail shops, and world-class dining and convention facilities. VISION IS MGM MIRAGE 06 2007 AR (RIGHT & ABOVE) MGM Grand Macau—Macau, S.A.R. around theglobe letter to our shareholders (continued) This project represents only the fi rst step of a Vision to leverage your Company’s plentiful brand and management assets to create new business opportunities. This partnership does not require any capital outlay by us, instead relying on our signifi cant experience in the operation of high-end luxury hotels and the recognition and reputation of our brands. Revenues will be generated through fees for managing the devel- opment and ongoing operations. This represents only one of the international interests MGM MIRAGE is pursuing in this fasci- nating and rapidly growing part of the world. Our discussions for developments in the People’s Republic of China are ongoing. With our partner, the internationally renowned Diaoyutai State Guest House, we are moving forward with projects in major Chinese cities, including Beijing. VISION IS (ABOVE) Dubai, U.A.E. cityscape MGM MIRAGE 08 2007 AR (RIGHT) MGM Grand Abu Dhabi—Abu Dhabi, U.A.E. ...having the dedication letter to our shareholders (continued) These concrete representations of our Vision Not all 2007 activity took place away from only serve to further our passion to extend our our traditional Las Vegas base. In June, your efforts. In 2007, your Company also announced Company formed an exciting new relationship plans for MGM Grand Atlantic City, a $4.5-$5.0 in the form of a joint venture with Kerzner Inter- billion destination casino resort, to be located national, one of the world’s most recognized on our 72-acre parcel in the city’s Marina District. and experienced international resort devel- The project’s stunning architecture and ambi- opers. Together, our companies announced tious scale will serve to demonstrate the skills plans to develop a multi-billion dollar integrated and expertise of your Company and, in doing so, Las Vegas resort property on approximately will help to elevate Atlantic City to a completely 40 of the 78 acres of land owned by MGM new stature. What our joint venture with Boyd MIRAGE on the corner of Las Vegas Boulevard Gaming did at Borgata was only the beginning. and Sahara Avenue. Planning and conceptual- MGM Grand Atlantic City is designed to create ization of this project will draw upon both our the momentum necessary to attract the atten- substantial presence and experience in Las tion of millions of East Coast customers and Vegas, as well as Kerzner’s expertise in plan- awaken them to the new reality of the nation’s ning, conceptualizing and operating some of second-largest gaming market as a place the world’s most recognized and successful where luxury, fi ne dining and entertainment can destination resorts. be found both near-by and in abundance. This joint venture represents a confl uence of forces that will surely combine to create a resort that will be unrivaled by anything in the industry. to develop the extraordinary VISION IS MGM MIRAGE (LEFT) MGM Grand Atlantic City—Atlantic City, NJ 2007 AR 11 letter to our shareholders (continued) ...working as one MGM MIRAGE strives to fulfi ll what the MGM MIRAGE continues to develop and Company considers to be its obligation to the expand our commitment to sustainability which communities in which we do business. This brings tremendous value to communities and commitment is expressed in many ways, from shareholders alike. As we extend sustainable the philosophy by which we approach our busi- business practices, both to existing properties ness, to the quality of the wages and benefi ts and new projects, our Company learns how to we offer employees, and the philanthropic work smarter and more effi ciently. CityCenter efforts we support. Our Company endeavors leads the way, as a nationally renowned sustain- to enrich the communities where many of our able development on course for certifi cation customers and employees live and raise their under Leadership in Energy and Environ- families. mental Design (LEED) standards. Efforts are One of our most signifi cant steps in this area also being investigated and implemented in was the announcement of a $40 million public many other aspects of our many operations— art program which will debut as part of City- from procurement to waste management, from Center in 2009. This unprecedented cultural construction to renovation—the principles of program utilizes this singular opportunity to sustainability help our business grow and our integrate such a program into the develop- planet thrive. ment of a new community. It also matches CityCenter in its scale. But at its most basic level, this public arts program is designed to become a benchmark for enlightened corpo- rate involvement with the arts on a global level and will be one of the world’s largest and most ambitious corporate art programs. (ABOVE LEFT) TONY CRAGG, Bolt, 2007, Stainless steel, (ABOVE RIGHT) CLAES OLDENBURG and COOSJE van BRUGGEN (RIGHT) HENRY MOORE,—Reclining Connected Forms, 129-7/8 x 45-5/8 x 45-1/4 in., 330 x 116 x 115 cm, Inv.#11239 Typewriter Eraser, Scale X, 1998-99, Stainless steel, 1969-1974,—Roman travertine marble VISION IS MGM MIRAGE Courtesy: Marian Goodman Gallery, New York fi berglass and acrylic polyurethane paint, 19’ 4” x 11’ 11-1/2” x 11’ 8-1/4” 122 x 204 x 93.5 inches (309.9 x 518.2 x 237.5 cm) 12 2007 AR (5.9 x 3.7 x 3.6 m) Photograph © Ellen Page Wilson, courtesy PaceWildenstein, New York. Copyright 1998-99 © by Claes Oldenburg and Coosje van Bruggen. to enrich lives ...creating opportunities letter to our shareholders (continued) MGM MIRAGE was honored to be recognized MGM MIRAGE also received accolades this year by two of the nation’s most prestigious for leadership and commitment in the area of business publications. For the seventh consec- Diversity. The Company was honored by Diver- utive year, Fortune Magazine named MGM sity Best Practices with the “2007 CEO Diversity MIRAGE one of “America’s Most Admired Compa- Leadership Award.” Additionally, DiversityBusi- nies.” The Company ranks fi rst in the industry in ness.com, the nation’s primary resource portal several attributes, including innovation, quality of for small businesses and large organizational management and quality of products/services. buyers, recognized MGM MIRAGE as one of Fortune’s “Most Admired” is the defi nitive report the nation’s leading companies for multicul- card on corporate reputations. tural businesses. Forbes Magazine named MGM MIRAGE Our Company also prides itself as a leader one of the “Best Managed Companies in in social responsibility, not only through America,” as part of its annual Forbes Platinum monetary support of worthy agencies in our 400 list of top-performing large corporations. communities, but also through multi-dimen- sional efforts, such as our partnership with the Culley Empowerment Elementary School in Clark County. Beyond a $50,000 annual cash donation from MGM MIRAGE, company employees also donated their time to volun- teer at important school events. Access to company resources were provided to further curriculum programs and works to engage other community partners to support school programs. Examples include offering students tours of the Bellagio Conservatory to supple- ment biology studies and engaging Nevada Ballet Theater or Big Brothers Big Sisters to support appropriate programs.