MGM Mirage Makes New Offer to Mandalay

14 Jun 2004

LAS VEGAS – (PRESS RELEASE) -- MGM Mirage (NYSE: MGG) today announced that following discussions throughout the weekend, its management and the management of Mandalay Resort Group (NYSE: MBG) have agreed on all material terms of an offer whereby MGM Mirage would acquire Mandalay in an all-cash transaction. MGM Mirage management intends to recommend approval of the transaction to its Board of Directors, which is expected to meet tomorrow to consider the transaction.

Under the proposed terms, MGM Mirage would pay $71.00 per share in cash, representing a premium of 30% to Mandalay's closing share price on June 3, the day before the initial offer was made. The total value of the transaction would be approximately $7.9 billion, including a total equity value of approximately $4.8 billion, $0.6 billion in convertible debentures, and assumption of approximately $2.5 billion in Mandalay debt currently outstanding. MGM Mirage expects the acquisition to be immediately accretive to earnings per share.

The transaction is subject to the approval of both Boards of Directors and the signing of a definitive merger agreement, and will be contingent on approval of Mandalay shareholders, receipt of all necessary regulatory and governmental approvals, and satisfaction of customary closing conditions.

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	MGM Mirage Makes New Offer to Mandalay 14 Jun 2004 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAS VEGAS – (PRESS RELEASE) -- MGM Mirage (NYSE: MGG) today announced that following discussions throughout the weekend, its management and the management of Mandalay Resort Group (NYSE: MBG) have agreed on all material terms of an offer whereby MGM Mirage would acquire Mandalay in an all-cash transaction. MGM Mirage management intends to recommend approval of the transaction to its Board of Directors, which is expected to meet tomorrow to consider the transaction. Under the proposed terms, MGM Mirage would pay $71.00 per share in cash, representing a premium of 30% to Mandalay's closing share price on June 3, the day before the initial offer was made. The total value of the transaction would be approximately $7.9 billion, including a total equity value of approximately $4.8 billion, $0.6 billion in convertible debentures, and assumption of approximately $2.5 billion in Mandalay debt currently outstanding. MGM Mirage expects the acquisition to be immediately accretive to earnings per share. The transaction is subject to the approval of both Boards of Directors and the signing of a definitive merger agreement, and will be contingent on approval of Mandalay shareholders, receipt of all necessary regulatory and governmental approvals, and satisfaction of customary closing conditions.