(from left to right) ROBERT C. SELWOOD Senior Vice President— Accounting; JAMES J. MURREN President, CFO & Treasurer; BRYAN L. WRIGHT Senior Vice President — Assistant General Counsel & Assistant Secretary;  DANIEL J. D'ARRIGO Senior Vice President—Finance No company is better positioned to help shape the future of Las Vegas than MGM MIRAGE. combination of Mandalay’s assets with our financial strength and industry-leading financial discipline will yield significant returns for all of our stakeholders. We are currently planning the integration of the two companies, and over time, we expect to realize the full poten- tial of cost and revenue synergies. We will report on our progress throughout the coming year. What makes a great city? Las Vegas has long been  recognized as the leisure capital of the world. The resorts in our valley have been the innovative leaders in the hospitality industry and have driven the tremendous growth in visitor volume, high occupancy rates and surging food, beverage, entertainment and gaming volumes. But there is another Las Vegas – a community of two million residents on its way to three million by the end of the decade. Las Vegas is leading the U.S. migration to the Southwest. Our newcom- ers are attracted by the lifestyle, weather, cost of living and economic opportunity. Many have come from cities in the East, West and Midwest and take elements of established communities for granted, such as medical, educational and cultural excellence and diversity. The people of Las Vegas today have great aspirations and The Next Moment – A City is Born expect and demand more of our community. We are a city without a proper city, and that is about to change. Ambitious plans are underway to revitalize Downtown Las Vegas, centered around a beautiful performing arts center and an academic medical center; UNLV is in the midst of a major capital cam- paign to enhance the Midtown section of Las Vegas; and your company has embarked on the most comprehensive project to date – Project CityCenter, at the heart of the Las Vegas Strip. The Las Vegas Strip has no sense of city now – but we believe it can. The future of Las Vegas is centered around our great resorts and our future development. There are many reasons we believe Project CityCenter is the right project for our Las Vegas Strip development. We believe there is a social imperative that Las Vegas mature as a city, not just a con- glomeration of suburbs. A city deserves a center – a center for living, working and playing. We want to be an integral part in defining the Las Vegas of the future. And there is a business motivation. Companies in the gaming industry have historically not been valued on par with other hospitality companies and mixed-use real estate compa- nies. We plan to break out of the gaming mold, and define a company based on extensive holdings in multiple businesses. Project CityCenter will include major residential, retail and entertainment components. We will partner with boutique CYNTHIA KISER MURPHEY Senior VP, MGM MIRAGE Human Resources  PUNAM MATHUR Senior VP,  MGM MIRAGE Diversity/Community Relations  WILLIAM MCBEATH President, The Mirage  ROBERT V. MOON Chairman, MGM MIRAGE Marketing  FELIX D. RAPPAPORT President, New York-New York 16 SCOTT SIBELLA President, TI