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Analyst Reiterates MGM Mirage Rating

24 January 2002

LAS VEGAS – Jan. 24, 2002 – Robertson Stephens gaming analyst Harry Curtis reiterated his "strong buy" rating on MGM Mirage Wednesday, saying he saw a number of catalysts that will help propel the casino resort operator's stock into the upper $30s.

In a research note, Curtis cited five factors: better-than-expected room rate pricing trends in Las Vegas; the reduction of MGM Mirage 's work force by 3,000 "full-time equivalents," which Curtis said will save the company up to $100 million per year; a better-than-expected rebound in high-end business from Asia; the possibility MGM Mirage will be awarded a gaming license in the Chinese city of Macau, which could boost earnings by at least $20 million; and the fact that 11 percent of MGM Mirage 's stock has been sold short, which could trigger a rush by short sellers to cover their positions by buying stock if MGM Mirage posts stronger-than-expected earnings.

Curtis estimates MGM Mirage will earn 32 cents per share in the fourth quarter of 2001, compared to Wall Street's consensus of 22 cents. His 12-month price target is $38 per share.

MGM Mirage stock closed Wednesday at $29.85, up 45 cents. It was up $1.43 this morning.

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