2004 OPERATIN G  MAR G INS CZR HET MBG 25.0% 14.8% 17.4% 21.8% MGG 22.4% 20.0% 15.0% 10.0% Recently, we opened the SKYLOFTS, a new level of luxury for guests atop MGM Grand Las Vegas.  We’ll follow the success of these new resort features with a category-defining new nightclub at The Mirage, two fabulous restaurants by Joël Robuchon at MGM Grand Las Vegas and gaming upgrades company-wide. Second, we are doubling down on Las Vegas by merging with Mandalay,  a company we have long admired. The Mandalay merger represents a tremendous opportunity to build on the mo- mentum established by Mike Ensign and his team. And third, we are dreaming of a not-so-distant future, when Project CityCenter will literally redefine the Las Vegas Strip and change the face of Las Vegas forever. Mandalay in Motion We are incredibly excited to begin our journey with the talented people of Mandalay, as we work to maximize the value of Mandalay’s instantly recognized brands and world- class resorts. Long a fixture in Las Vegas, Mandalay’s resorts will add to our premium portfolio and allow us to accelerate the pace of our growth. Our hotel people will be able to mar- ket a wider range of rooms and benefit from a world-class  convention center. Our casino marketing people will be able to offer their customers wonderful new amenities to expand our market reach. And our development people will be able to maximize the potential of priceless Las Vegas Strip land. The Mandalay merger represents another defining moment for MGM MIRAGE, much like the Mirage Resorts transaction in 2000, at a time when Las Vegas is in a state of astounding metamorphosis. No company is better positioned to help shape the future of Las Vegas than MGM MIRAGE. We employ more people, invest more money and hold more prime real estate than any other company in Las Vegas. The PHYLLIS JAMES Senior VP & Senior Counsel, MGM MIRAGE WILLIAM J. HORNBUCKLE President & COO, MGM MIRAGE Europe BRUCE GEBHARDT Senior VP,  MGM MIRAGE Global Security  ALAN FELDMAN Senior VP Public Affairs, MGM MIRAGE AL FACCINTO President, MGM MIRAGE International Marketing 15