MGM Mirage and Kerzner International have today announced an agreement to form a joint venture to develop a multi-million dollar integrated casino resort on the Las Vegas Strip. The 50-50 joint venture will be located on the corner of Las Vegas Boulevard and Sahara Avenue, with MGM Mirage supplying the land and Kerzner International developing the property. A definitive agreement is expected to be signed in the third quarter of 2007.

"We see this type of relationship as a major part of our company's future," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our considerable real estate holdings, combined with our experience and efficiencies in developing major entertainment resort properties, are unmatched. We believe this joint venture could well serve as a model for similar transactions which we think could further enhance shareholder value by accelerating growth and conserving our capital, allowing us to pursue other growth opportunities and/or return excess capital to our shareholders."

The as yet unnamed resort will cover approximately 40 acres and, although a design concept has been agreed, the planning and actual design are expected to take around one year to complete. Sol Kerzner, Chairman and CEO of Kerzner International, observed: "We have studied the Las Vegas market for some time and believe this is an outstanding opportunity to create one of the most innovative and exciting destination resorts in the world. We are delighted to join forces with MGM MIRAGE." (E-06.20.07)

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