Mandalay Resort Group Rejects MGM Proposal

11 Jun 2004

LAS VEGAS – (PRESS RELEASE) -- Mandalay Resort Group (NYSE: MBG -) today announced that, after a thorough review of the MGM Mirage proposal to acquire Mandalay, including consultation with its legal and financial advisors, the Board of Directors rejected the proposal because it did not provide sufficient assurance to Mandalay shareholders that the transaction would close.

Glenn Schaeffer, president and chief financial officer of Mandalay Resort Group, said, "The terms of the MGM Mirage proposal asked Mandalay shareholders to bear a far disproportionate share of the risk. It is not in the best interest of Mandalay shareholders to agree to a deal that gives MGM control over whether it closes."

Schaeffer further noted, "Mandalay's earnings power is on a decided upswing, represented by a string of record quarterly results. Our track record for expansion, innovation and strong profit margins speaks well for our strong future." Schaeffer then concluded, "This company's consistent and shareholder-friendly return of value through share repurchases and dividends also distinguishes the company among its competitors."

On June 3, 2004, Mandalay Resort Group announced record financial performance for the first quarter ended April 30 of $1.30 per share compared to $0.69 in the prior year's quarter.

Merrill Lynch & Co. is the company's financial adviser and Cravath, Swaine & Moore LLP is the company's legal adviser.

Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus Circus -- Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also owns and operates Gold Strike, a hotel/casino in Tunica County, Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.

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	Mandalay Resort Group Rejects MGM Proposal 11 Jun 2004 LAS VEGAS – (PRESS RELEASE) -- Mandalay Resort Group (NYSE: MBG -) today announced that, after a thorough review of the MGM Mirage proposal to acquire Mandalay, including consultation with its legal and financial advisors, the Board of Directors rejected the proposal because it did not provide sufficient assurance to Mandalay shareholders that the transaction would close. Glenn Schaeffer, president and chief financial officer of Mandalay Resort Group, said, "The terms of the MGM Mirage proposal asked Mandalay shareholders to bear a far disproportionate share of the risk. It is not in the best interest of Mandalay shareholders to agree to a deal that gives MGM control over whether it closes." Schaeffer further noted, "Mandalay's earnings power is on a decided upswing, represented by a string of record quarterly results. Our track record for expansion, innovation and strong profit margins speaks well for our strong future." Schaeffer then concluded, "This company's consistent and shareholder-friendly return of value through share repurchases and dividends also distinguishes the company among its competitors." On June 3, 2004, Mandalay Resort Group announced record financial performance for the first quarter ended April 30 of $1.30 per share compared to $0.69 in the prior year's quarter. Merrill Lynch & Co. is the company's financial adviser and Cravath, Swaine & Moore LLP is the company's legal adviser. Mandalay Resort Group owns and operates 11 properties in Nevada: Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in Las Vegas; Circus Circus -- Reno; Colorado Belle and Edgewater in Laughlin; Gold Strike and Nevada Landing in Jean and Railroad Pass in Henderson. The company also owns and operates Gold Strike, a hotel/casino in Tunica County, Mississippi. The company owns a 50% interest in Silver Legacy in Reno, and owns a 50% interest in and operates Monte Carlo in Las Vegas. In addition, the company owns a 50% interest in and operates Grand Victoria, a riverboat in Elgin, Illinois, and owns a 53.5% interest in and operates MotorCity in Detroit, Michigan.