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time. It became a discussion of what would be in the best interest of MGM China and MGM Resorts, in which she is now a significant investor. The best interest for MGM China was to have a clear path, to have an ownership that is understood, to have governance that is quite clear and to really eliminate discussions that could occur. What would happen in an impasse? What if we, as equal partners, were to disagree? I feel that we have been able to resolve all that with

great clarity. It has been great for us and I think it has been great for her.

Volatility of gaming stocks continues and MGM China has not been immune to it. Are you worried about those ups and downs, some of them for no apparent reason? We are a little battle-tested in this regard. I

remember very vividly in the United States when gaming started expanding rapidly, when states started approving gaming and companies popped up. The volatility was unbelievable. Stocks are traded on rumours, on expectations, on

nuances. You need to have a view on where China is going over the next couple of years, where Macau is going. The capital markets’ piece in the story is only relevant if you are using your stock as a currency to do something, whether you are a buyer or a seller. Right now, we are neither.

…the city will focus, emphasise and demand of its operators to extend the boundaries of what they do and not simply build windowless casinos with tables and slots

Mainland debut What is the most recent update on MGM Were you surprised with Ms Ho’s decision to

reduce her stake in MGM China Holdings Ltd.? I was not surprised because I asked her to do it.

From MGM Resorts’ perspective, it’s extraordinarily attractive to have 51 percent or the majority of MGM China because we can fully consolidate all of its results onto MGM Resorts’ financial statements. It has a profoundly positive impact on our financial performance. Secondly, from a standpoint of why that would be

interesting for Ms Ho, I asked her to consider selling down and look at if she would like to diversify her own holdings by investing in MGM Resorts, which she did. She took a significant portion of the proceeds she received from the IPO and invested it into MGM Resorts.

I feel that this could only have happened at this 32 FEBRUARY 2012

Resorts International partnership with state- owned Diaoyutai State Guesthouse to manage more than 20 hotels in the mainland? We are only [weeks] away from opening the first major resort, in Sanya. MGM Grand Sanya is a 675-room hotel that has been developed and will be managed by Diaoyutai MGM Hospitality. It’s a great location. Next year we will open a boutique hotel in Beijing. We

have projects underway in Chengdu, Nanjing, Tianjin, Ningbo and we have many more on the horizon. Concurrently MGM Resorts is developing

throughout the Middle East, with several projects in Egypt, Jordan and the Emirates, and three in India. We believe that this is a great growth vehicle for the company to leverage our brands and some of our development and operational expertise.

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