Adam Aron, chairman and chief executive officer of Vail Resorts, commented, �these Breckenridge plans reinforce our commitment to preserving open space, connecting the town with the resort and critical skier services, and are aimed at keeping Breckenridge at the forefront of the Colorado ski industry.� He went on to explain that the development includes two new ski mountain portals with modern amenities for skiers, guests, and residents.

Of the total development, 48 acres at the bases of Peaks 7 and 8 will be developed with a mix of residential and commercial units, 8 acres in Watson lot will be used as base terminal parking for the new gondola, and the remaining 208 acres will be preserved for ski terrain, on-site wetlands protection and wildlife habitats.

The residential units at the base of Peak 8 are envisioned to be 433 small condominiums averaging less than 900 square feet. The plan also calls for 12 single-family homesites and 12 townhomes. Included in the offerings at Peak 8 is a new landmark building, a �grand scale� lodge including 148 condominium hotel units, fitness center with swimming pool, tennis courts, a year-round ice-skating rink and 12,000 square foot conference center. �We envision Peak 8 as an exciting, fun, safe family place with all the amenities that will be provided in the village,� said Roger Beck, Senior Vice President of Vail Resorts Development Company. The plan also calls for replacing all the current ski area operations and administration buildings at Peak 8, some of which were constructed shortly after the mountain was opened in 1961.

The plan for Peak 7 differs from Peak 8, calling for �a smaller, more intimate village setting featuring a strong architectural character,� according to Beck. The proposal for Peak 7 includes 78 residential units, within two condominium buildings with skier services on the plaza level and a series of small mountain lodges, each comprised of 6 to 10 condominiums. Peak 7 would be the second of two mid-way stations the proposed gondola would pass through en route from the valley floor to its final stop at Peak 8. The first stop would be at a mid-way station on Shock Hill, the land that bridges the ski resort to the valley floor and the site of the Breckenridge Nordic Center, some single-family and multi-family homesites, and Cucumber Gulch.

Beck added that the plan includes approximately 110,000 square feet of commercial space, but pointed out that approximately 46,000 square feet of that space replaces existing infrastructure such as the Ullr Building, Bergenhof Restaurant and Peak 8 Ski Rental. Of the remainder, 35,000 square feet is allocated in the plan for new skier services and restaurant space; the final 26,000 square feet is configured as retail space. The 110,000 square feet is spread throughout the two base areas and at the gondola terminal in town.

He said that the design of the condominiums is based on a concept of �hot beds,� i.e. units that would be furnished and of a size and price that owners would want to include in a year-round rental operation. �When beds are full in Breckenridge, both the town and ski area succeed; our formula for success is that straight-forward.�

�We�re keeping nearly 80% of the land on Peaks 7 and 8 preserved as open space for ski terrain, on-site wetlands protection and wildlife habitats. In doing so, we�ve essentially abandoned 33 previously approved and highly desirable homesites in the Gulch,� said Beck. The ski area recognizes the proposed corridor of the gondola, Cucumber Gulch, as an environmental asset to Breckenridge. The town recently declared it a Protected Management Area (PMA) and is considering allocating nearly $5 million to purchase open space near the corridor. Accordingly, the plan reflects the 100� setback for buildings from Gulch wetlands as required by the PMA ordinance. The plan also calls for extensive water quality protection systems, ground water analysis, use of construction techniques that minimize impacts to ground water as it relates to wetland functions, use of detention and sedimentation basins to minimize impacts to groundwater.

Aron concluded, �Skier days at Breckenridge have grown by 50% in the last 15 years. Our Company has supported the investment of approximately $100 million in on-mountain improvements, hotel acquisitions and employee housing in Breckenridge in just three years. But the best opportunity for improving the Breckenridge ski facilities and operations lie ahead, and are reflected in this plan.�

Resort Revenue for the fourth quarter of fiscal 2000, which excludes revenue from real estate operations, grew 13.7% to $59.6 from $52.4 million in the comparable period last year. Total Revenue, which includes revenue from real estate operations, increased 14.8% to $74.6 million from $64.9 million reported in the fourth fiscal quarter last year.

Earnings from resort operations before interest, income taxes, depreciation and amortization (�Resort EBITDA�) for the fourth fiscal quarter, was a loss of $12.9 million versus a loss of $14.8 million in the fourth fiscal quarter last year.  Included in this total are $3.2 million of expected net proceeds from the Reduced Skier Day Insurance Policy which the Company previously announced it had purchased.

The net loss for the fourth quarter ended July 31, 2000 was $16.0 million, or $0.46 per diluted share, compared to a net loss of $13.5 million, or $0.39 per diluted share for the same period last year.

Resort Revenue for the fiscal year ended July 31, 2000 rose 16.1% to $501.4 million over the $431.8 million reported for the twelve months ended July 31, 1999. Total Revenues increased 16.3% to $553.1 million versus the $475.7 million reported in the twelve months ended July 31, 1999.

Resort EBITDA for the fiscal year ended July 31, 2000 increased 31.3% to $113.1 million from $86.1 million in the previous fiscal year. Included in this total are $13.9 million of expected net proceeds from the Reduced Skier Day Insurance Policy.

Net Income for the fiscal year was $15.3 million, or $0.44 per diluted share, compared to $12.8 million, or $0.37 per diluted share in fisca1 1999, a 20.0% increase in earnings per diluted share.

Adam Aron, Chairman and Chief Executive Officer of Vail Resorts, commented, �Our Company has just completed a successful fiscal year, which we believe positions us well for the future. As these results indicate, we saw greatly improved financial performance. As important, our guests enjoyed dramatic product upgrades, including the opening of Vail�s Blue Sky Basin, Breckenridge�s Quicksilver Super6 chairlift, and the new 18-hole championship River Course, as well as the greatly expanded conference center, in Keystone. We also began construction of the new Red Sky Ranch golf community near Beaver Creek, which will showcase a Tom Fazio-designed golf course to benefit future summer visitors.�

Aron added, �Looking ahead, we have just announced a wide array of exciting new marketing programs designed to entice skiers to our slopes for the upcoming 2000-2001 ski season, which is just weeks away. This season our guests will have the opportunity to ski our resorts for less than $30 per day as part of our new Colorado Deal multi-day lift ticket program, while experiencing our latest exciting new attractions, including Pete�s Bowl at Vail�s Blue Sky Basin and a new high-speed, six passenger chairlift at Keystone. With our Vail Resort ranked once again as North America�s #1 resort by SKI Magazine, and all of our resorts ranked in the top 10, it is clear that Vail Resorts provides a paramount experience for our guests.�
 

Vail Resorts, Inc. is the premier destination mountain resort operator in North America. The Company�s subsidiaries operate the Colorado resorts of Vail, Breckenridge, Keystone and Beaver Creek, as well as the Grand Teton Lodge Company in Jackson, Wyoming. 

Statements in this press release, other than statements of historical information, are forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.