of MGM MIRAGE Pending Merger with
Mandalay Resort Group
|LAS VEGAS, Dec. 3, 2004 - MGM MIRAGE (NYSE: MGG) announced today that
it was considering various strategic alternatives in connection with operations
in Detroit, Michigan. MGM MIRAGE currently operates, with local partners,
the MGM Grand Detroit Casino. As part of its pending merger with Mandalay
Resort Group (NYSE: MBG), which is expected to close in the first quarter
of 2005, MGM MIRAGE would acquire a 53.5% indirect interest in the MotorCity
Casino, also in Detroit. Under Michigan law, MGM MIRAGE would be unable
to keep both properties.
"MGM Grand Detroit and MotorCity are both great properties with consistently strong operating results and terrific growth prospects," said Terry Lanni, Chairman and Chief Executive Officer of MGM MIRAGE. "We initially expected that we would dispose of Mandalay's majority interest in MotorCity. However, since making that initial determination we have been approached by several parties concerning the possible sale of MGM Grand Detroit and we have decided to explore this alternative. If such a transaction were to occur, we would maintain Mandalay's interest in MotorCity and look forward to working closely with Mandalay's partners and the City of Detroit to develop and enhance that property."
MGM MIRAGE, headquartered in Las Vegas, Nevada, is one of the world's leading and most respected hotel and gaming companies. The Company owns and operates 11 casino resorts located in Nevada, Mississippi and Michigan, and has investments in three other casino resorts in Nevada, New Jersey and the United Kingdom.
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 public filings with the Securities and Exchange Commission.
|Also See:||The Construction of Three Casino Hotels in Detroit Remains Up in the Air; Tiny Upper Peninsula Tribe Seeks Millions / October 2003|
|Mandalay Resort Group Reports Revised Development Agreement with the City of Detroit Has Been Approved by the Detroit City Council; Includes 400-room Hotel, Expanded Casino / Aug 2002|
|Each Detroit Temporary Casino Was to Build a Permanent 800-room Casino Hotel; Plenty Yet to be Resolved / March 2002|