Century City Gains Prestige With Relocation of World-Class Entertainment Company.

Business/Entertainment Editors & Real Estate Writers

LOS ANGELES--(BUSINESS WIRE)--Dec. 1, 2000

MGM Signs Lease Agreement with JMB Realty Corp.,

Becoming Major New Tenant of Century City Complex

Metro-Goldwyn-Mayer Studios Inc. (NYSE:MGM) finalized a lease agreement with AP Properties Ltd., an affiliate of JMB Realty Corp. of Chicago, following an MGM board of directors meeting yesterday.

MGM will begin occupancy at Constellation Place, which will be renamed "MGM Tower," beginning June 1, 2003, for a 15-year lease term after the conclusion of its present lease.

Construction is expected to begin in March of 2001. Upon completion, the building will contain approximately 700,000 square feet of Class A office space and ancillary retail space, spanning a total of 35 floors. MGM's occupancy of 427,158 square feet will include a portion of the ground floor level and the lower 17 floors of the building.

The company's current site, MGM Plaza, is located in the city of Santa Monica, Calif., where it presently occupies 375,000 square feet.

"The new MGM Tower will be a state-of-the-art complex in a fabulous location, central to the city's production facilities, with premium visibility as a bonus," stated Alex Yemenidjian, MGM chairman and chief executive officer. "This is a terrific opportunity to design our facility to accommodate the company's specific needs today. We are capitalizing on MGM's extraordinarily low-cost structure that allows us to relocate without dealing with the burdens of old, massive and costly infrastructures."

After several years of development, the finalized lease agreement brings encouraging news to the city of Los Angeles.

"I'm ecstatic that MGM, a world-class company, selected L.A. for its headquarters. L.A. is truly on a roll," said Los Angeles Mayor Richard Riordan. "This affirms the hard work of the L.A. Business Team and reflects confidence in the city's business market and is a significant development for L.A.'s job market."

Councilman Mike Feuer (District 5) agreed, adding: "The relocation of MGM's corporate headquarters from Santa Monica to Century City adds a valuable asset to Los Angeles and also sends an important message -- L.A. remains the entertainment capital of the world. MGM's new home will be a prestigious address, offering state-of-the-art accommodations, and it's sure to attract other top-quality tenants to Century City."

Befitting its role as the first high-rise to be built in Los Angeles in the 21st century, the MGM-anchored development will be equipped with the most sophisticated, high-performance materials, fiber optics and energy conservation systems.

The building's exterior will be unlike any other, combining aluminum, stainless steel and glass, with gray and white granite and marble combinations to create an elegant and contemporary look that will establish the highest standard in Century City.

"Constellation Place occupies an exceptional site with great westerly views and at the same time is an ideal walking location close to all of Century City's amenities," said Scott Johnson, FAIA, design partner of Johnson Fain Partners and the lead architect for Constellation Place. "This development creates a powerful and memorable cityscape image as well as retains a sense of place with expansive public areas that include a one-acre art park."

Metro-Goldwyn-Mayer Inc. (NYSE:MGM) is actively engaged in the worldwide production and distribution of entertainment products, including motion pictures, television programming, home video, interactive media, music and licensed merchandise. The company owns the largest modern film library in the world, consisting of more than 4,100 titles.

Its operating units include MGM Pictures, United Artists Films, Orion Pictures, MGM Television Entertainment, MGM Networks, MGM Distribution Co., MGM Home Entertainment, MGM Consumer Products, MGM Music, MGM Interactive and MGM.com, among others. For more information on MGM, access MGM Online at http://www.mgm.com.