Always in Motion Defining Value hotel, retail and residential companies, companies previously serving only major urban hubs. And CityCenter will ensure the greatest possible return on our investment on this Las Vegas Strip land. As always, we are working on many growth opportunities to increase our momentum and become a company with a global scale. We are excited about the expansion projects underway  at Borgata, the rapid sales pace at The Residences at MGM Grand Las Vegas, and the development of a hotel-casino in Macau. And we are exploring additional development opportu- nities in the Far East and the United Kingdom. All of these endeavors will be handled with the clear intent of expanding prudently and ensuring financial stability, as our capital alloca- tion focus in 2005 will be to reduce debt and continue to invest in our resorts. It has become a custom to include our financial core values  in this letter to our owners. We believe that management’s most important role is to most effectively manage assets and allocate capital. We hire the best casino resort operators in the world, and they provide us the fuel we need, operating cash flow, to propel us forward. That cash flow generates real value for share- holders in several ways. First, we can re-invest in our resorts, as we have done over the past several years and will continue to do so in 2005 and beyond. These investments create the impetus for increased guest spending, and the relationship is not linear. We are capturing an increased share of guests and an increased share of each guest’s spending budget. Since 2000, we have invested over $2.0 billion in capital in our resorts and our unconsolidated affiliates, which helped drive EBITDA from $1.1 billion to $1.5 billion in 2004, with significant cash flow-producing assets just coming on line in late 2004. Second, we can return capital to the shareholders. In 2004, we repurchased eight million shares of common stock for  $349 million bringing the total since May 2000 to 30 million shares for $1.0 billion. Third, we can reduce debt, and  maintain a low cost of borrowing for the future. In 2004,  we repaid almost $100 million in net debt, bringing total debt reduction since May 2000 to $1.1 billion. Our financial strength allowed us to issue over $1.5 billion in fixed rate debt in 2004 at historically low interest rates, as well as securing a $7 billion credit facility to fund the Mandalay acquisition, the largest ever for a gaming company. And the recent redemptions of certain of our Senior Notes means our assets are no longer securing our remaining senior debt, including the new credit facility. We would love to look back at 2004 forever, given that  it was our company’s best year ever. But our work is only beginning. New history is still to be made; records are waiting to be broken; and we must vigilantly maintain our momentum. As stewards of your company, our goals are to continue to perform at peak levels and manage our growth initiatives to ensure maximum value for our shareholders. I hope to report on new defining moments in next year’s Annual Report.  JAMES J. MURREN President, Chief Financial Officer & Treasurer  $00.00 Jan 02 STOCK PRICE HISTORY (2002-2004) $10.00 Apr 02 Jul 02 Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan 04 Apr 04 Jul 04 Oct 04 Dec 04 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 17 WILLIAM SMITH President, MGM MIRAGE Design Group RICHARD A. STURM President,  MGM MIRAGE Sports & Entertainment  FRANK VISCONTI President, MGM MIRAGE Retail RENEE WEST President, Primadonna Resorts  FORREST WOODWARD President, Boardwalk 