Net revenues for the 1998 period were down 7.1% to $193.7 million, compared with $208.4 million for the same period in 1997. The lower 1998 third quarter earnings and net revenues were affected by higher non-operating expenses, lower than average table games hold percentage at MGM Grand Las Vegas when compared with an above average hold percentage during the prior year's third quarter, and lower results from the Company's 50% interest in New York - New York Hotel/Casino. The hold percentage differential between the 1998 period and the 1997 period equates to $14.7 million of operating cash flow (EBITDA), or earnings of 17 cents per diluted share. Partially offsetting these factors was a notable improvement in non-gaming operations, reflecting strategic initiatives implemented throughout the year to boost revenue and reduce non-productive costs. As a result, room, food and beverage, entertainment, retail and other revenues climbed 6.3% with improved operating margins. Table games and slot volume increased year-over-year, further indicating strong customer demand. Operating cash flow (EBITDA) for the three months ended September 30, 1998 was $55.5 million, representing an operating margin of 28.7% when compared with $72.7 million in the prior year's third quarter (before one-time charges).

"Our Master Plan project began in mid-1996. Completion of our City of Entertainment transformation is now only several months away as we eagerly anticipate the opening of the MGM Grand Mansion and the Lion Habitat in early 1999," said J. Terrence Lanni, Chairman and Chief Executive Officer of MGM Grand, Inc.

"Using a normalized hold percentage, our operating margin for the quarter would have been an impressive 30%," said Alex Yemenidjian, President and Chief Operating Officer of MGM Grand, Inc. 

As part of the Company's program to purchase an aggregate 12,000,000 shares of common stock, the Company completed its acquisition of 6,000,000 shares at $35 per share during the 1998 third quarter. The Company anticipates that, depending on market conditions, the remaining 6,000,000 shares in the repurchase program may be acquired in the open market, in private transactions, through a tender offer or offers or otherwise. The Company may in the future also repurchase common stock outside of the repurchase program in the open market, in private transactions, through tender offers or otherwise, although no such purchases are presently contemplated.

MGM Grand Las Vegas - The City of Entertainment

The MGM Grand Las Vegas generated operating cash flow (EBITDA) of $40.9 million in the 1998 third quarter, compared with $56.5 million in the 1997 third quarter.  Net revenues for the 1998 period were $173.3 million compared with $185.7 million during the 1997 period.  The City of Entertainment was affected by a lower than average table games hold percentage, particularly in baccarat, when compared with an above average hold percentage during the prior year's third quarter.  Although the 1998 third quarter average table game hold percentage was lower than the prior year's third quarter, there has been improvement compared with the results from the first six months of 1998.  The transformation into The City of Entertainment has contributed to increased depreciation and amortization expense in the 1998 third quarter of $4.3 million.  The City of Entertainment continues to maintain strong customer demand, as evidenced by period over period increases in casino volume, hotel revenue per available room (REVPAR) which increased to $92 from $89, and food covers which increased by 15.2%.

New York - New York Hotel Casino

MGM Grand, Inc. was affected by lower 1998 earnings from its 50% owned New York - New York Hotel/Casino when compared with the stellar 1997 initial year activity.  The Company recorded $7.7 million in pretax income from its equity interest in New York - New York for the 1998 third quarter as compared with $10.4 million during the 1997 third quarter.  New York - New York continued to report strong operating results in the 1998 period with operating cash flow (EBITDA) of $25.5 million on net revenues of $55.9 million, representing a 45.6% EBITDA margin, compared with EBITDA of $31.2 million on net revenues of $61.7 million, during the 1997 period.

MGM Grand Australia

MGM Grand Australia's operating cash flow (EBITDA) rose 18.8% to $3.8 million for the third quarter of 1998 compared with $3.2 million in the prior year's quarter.  Net revenues were $9.2 million during the 1998 period, compared with $9.8 million for the same period in 1997.  MGM Grand Australia continues to exceed expectations as its operating cash flow (EBITDA) margin jumped from 32.7% in the third quarter of 1997 to 41.3% for the 1998 third quarter.

South Africa

The Company earned management and development fees of $1.3 million for the quarter ended September 30, 1998, and incurred expenses related to managing and developing these facilities of $.3 million.

The Company, in conjunction with its partner in South Africa, opened a temporary casino in Johannesburg on September 28, 1998. The complex, called the Sundome, includes 1,700 slot machines and 50 table games. The extraordinary traffic at this casino, which charges for admission, has led to initial results significantly above expectations. The Johannesburg casino represents the third casino to be managed by the Company in the Republic of South Africa. It is anticipated that the permanent facility in Johannesburg would open in late 2000, subject to various approvals and regulatory conditions. The Company and its partners continue to submit bids for additional casino licenses throughout the remaining provinces of the Republic of South Africa. The Company's partner will provide all project costs, and MGM Grand, Inc. will earn fees for the development and management of the casinos.

MGM Grand Detroit

The Company, in conjunction with its Detroit partners, has been informed that the Michigan Gaming Control Board unanimously adopted a resolution stating that it will issue casino licenses to conduct gaming operations in temporary casino facilities.  The issuance is subject to suitability and compliance with the requirements of the Michigan Gaming Control and Revenue Act.

MGM Grand has entered into a lease agreement for its temporary facility, which will be located directly off the Lodge Freeway. The facility will consist of a casino with at least 65,000 square feet, 2,100 slot machines and 70 table games and will also contain specialty restaurants and bars. The Company anticipates the temporary casino to open in the summer of 1999.

Under the development agreement, the temporary facility will remain open for a period not to exceed four years, after which time the Company anticipates opening a spectacular permanent entertainment and gaming complex at an estimated cost of $800 million. Both the temporary and permanent facilities are subject to various governmental approvals.

MGM Grand, Inc. is an entertainment, hotel and gaming company headquartered in Las Vegas, Nevada. The Company operates the MGM Grand Hotel/Casino in Las Vegas, the MGM Grand Hotel/Casino in Darwin, Australia and owns a 50% interest in the New York - New York Hotel/Casino in Las Vegas, Nevada. MGM Grand, Inc. manages casinos in Nelspruit, Witbank and Johannesburg, South Africa. The Company plans to develop a temporary casino in Detroit, Michigan, which is anticipated to open in the summer of 1999, followed by a permanent hotel/casino resort thereafter. MGM Grand, Inc. also has announced plans to develop a hotel/casino
resort in Atlantic City, New Jersey.

Statements in this release which are not historical facts are "forward looking" statements and "safe harbor statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and/or uncertainties, including risks and/or uncertainties as described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997.