Defining Momentum for Our Industry The gaming industry in America is maturing, and  international expansion, while exciting in select markets, remains challenging. As a result, your company has  pursued a growth strategy that calls for maximizing the assets we currently own and seeking prudent development opportunities and strategic acquisitions. Upon completion of our merger with Mandalay, MGM MIRAGE will be the world’s leading gaming and leisure company. The combination will result in a well- capitalized company uniquely situated to invest in its  current portfolio in addition to creating new projects  in the United States and around the world. We believe this is an outstanding  transaction for the shareholders of both companies. With this acquisition, we will own,  operate and have investments in 28 properties throughout Nevada, Mississippi,  Illinois, Michigan, and New Jersey.  The combined company will have an asset portfolio which includes some of the most widely recognized brand names in the world. These properties cater to a broad  customer base, ranging from value-oriented to the ultra- high end. Each resort provides a unique customer experience through its specific personality and combination of amenities. In 2004, your company invested over $690 million of capital in the creation of new restaurants, clubs, shows and nightspots as well as the development of strategic enhance- ments to existing amenities. These investments generated exceptional returns in a time when competition for the entertainment dollar has never been higher.  In short, this groundbreaking transaction creates unstoppable momentum for all stakeholders in the  MGM MIRAGE family.  But the bricks and mortar tell only part of the story  of this transaction. At the heart of Mandalay is its people. Mandalay employees at all levels are energetic and talented  and will be a tremendous asset to us. Together, we will become a family in excess of 70,000 people committed to delivering  the best possible experiences for our guests. The transaction  also will create unparalleled opportunities for our entire family of employees.  We also will have at Mandalay Bay the fifth largest convention center in the United States, providing the com- pany with a great resource to further develop the business travel and convention market.  Defining Momentum in our Properties EARNIN G S PER SHARE 2002 2003 2004 $3.00 $1. 8 3 $1.61 $2. 8 5 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 | 03 Mystère ® by Cirque du Soleil ® FIX  BELLAGIO Classic American fare using the freshest fish, meat, and poultry cooked to order on  a wood-burning grill. Costa Rican Padouk wood inspires a warm environment in a unique, vibrant design. 