text: • The ongoing capital investments in upscale amenities at our resorts, which we 
  
  believe is allowing us to market more effectively to visitors, capture a greater share 
  of these visitors’ increased travel budgets, and generate premium pricing for our 
  resorts’ rooms and other amenities. 
  
  As a result of the above trends, our net revenues increased 10% in 2004, while 
  increasing only 3% in 2003. Net revenues at MGM Grand Las Vegas increased 
  14% in 2004, due to the addition of several new restaurants, bars and other 
  amenities, and in spite of fewer rooms in service due to room remodel activity. 
  Net revenues at New York-New York increased 26% as the resort continues to 
  benefit from*Zumanity*and Nine Fine Irishmen, both of which opened in summer 
  2003. Net revenues at The Mirage decreased 2% as the resort was without the 
  Siegfried & Roy show and the buffet was closed for a portion of the year while 
  Cravings was constructed. 
  
  Our operating income in 2004 increased 36%, due primarily to the strong revenue 
  trends and a full year of Borgata’s results. The increase in income from unconsoli- 
  dated affiliates is responsible for approximately one-third of the increase in 
  operating income, while improvements at our operating resorts, particularly 
  Bellagio, MGM Grand Las Vegas and New York-New York, make up the rest of the 
  increase. Operating income at MGM Grand Detroit was essentially flat year-over- 
  year, despite an increase in the gaming tax rate from 18% to 24% effective 
  September 2004. Several other factors largely offset: Higher corporate expense due 
  to increased development costs; lower bad debt expense due to improved collec- 
  tions; lower preopening expenses due to Borgata preopening expenses in 2003; and 
  higher property transactions, net due to a $37 million gain on sale of land in 2003. 