"We set out to prove that online casino gaming could be implemented with the same high standards of regulatory integrity as land-based operations," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "We were successful in demonstrating a working model that provided the proper checks for jurisdictional control, age verification and the necessary security and responsible gaming measures required to function in a regulated market," Mr. Lanni said. The company established MGM MIRAGE Online

MGM MIRAGE Online Isle of Man, Ltd.,  is a subsidiary of MGM MIRAGETM and regulated exclusively in the British Isles under Isle of Man law. Isle of Man Online Gambling Licence No. 2 was granted to MGM MIRAGE Online on 20th September 2001.

MGM MIRAGE confined its activities to jurisdictions in which online wagering was permitted and did not accept customers from the United States and other jurisdictions which do not permit such activities.

"Unfortunately, even in light of a successful working model, the legal and political climate in the U.S. and several countries around the world remains unclear. The fact is that millions of U.S. citizens currently participate in online gaming in an unregulated environment. We believe that a more sound and realistic public policy would be to regulate the activity and hold operators to the highest standards of probity and integrity. MGM MIRAGE Online has clearly established that the regulatory model works.

"In the meantime, millions of U.S. citizens who are currently playing casino games online every day must continue to do so without the protections provided by common sense regulations that we believe should be implemented. The day will clearly arrive when this activity will be legalized and regulated and we will participate fully at that time," Mr. Lanni said.

As a result of the announcement, the company will record a loss from discontinued operations of approximately $5 million, net of tax, in the second quarter related primarily to (1) unrecoverable costs of software and hardware utilized in the operation, (2) second quarter operating losses of MGM MIRAGE Online, and (3) tax benefits related to the above items and to prior period operating losses.

"We have proven critics wrong who said that online gaming could never be properly regulated. We greatly appreciate the efforts of our staff who have paved the way for the implementation of a regulatory structure from a technological perspective. We simply have to wait for the political climate to change and reality to set in," Mr. Lanni said.

MGM MIRAGE Online is based in the Isle of Man, an internally self-governing dependency of the British Crown.

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.

MGM MIRAGE , one of the world's leading and most respected hotel and gaming companies, owns and operates 14 casino resorts located in Nevada, Mississippi, Michigan and Australia, and has investments in two other casino resorts in Nevada and New Jersey.