Under the terms of the agreement, American Skiing Company, through its subsidiary American Skiing Company Resort Properties, Inc., will transfer its options on a parcel of land in the Redevelopment District in South Lake Tahoe, immediately adjacent to the new 8-passenger Heavenly gondola, which will open this winter.

American Skiing Company expects the transaction to close before the end of October, and expects to recognize Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) of approximately $7 million.

The transaction brings to a conclusion the pre-existing development agreement, thus eliminating restrictions on timeshare development at the Company�s other resorts nationwide.

Under the terms of the agreement, Marriott acquires California timeshare development rights at Heavenly.  The Company and Marriott remain in active negotiations regarding possible development at the Company�s Killington resort in Killington, Vermont.

�The Marriott project will be the perfect companion to our Grand Summit Resort Hotel, which is currently being developed by the Company at the first of the two development sites located in the redevelopment district,� said Stan Hansen, senior vice president of real estate development at Heavenly.

Both sites are immediately adjacent to the new gondola.  �Together, these projects represent a real facelift for downtown South Lake Tahoe and transforms Heavenly into a truly world class destination resort,� said Hansen.

The City of South Lake Tahoe Redevelopment Agency amended the Disposition and Development Agreement to permit the transfer of the parcel and development of the timeshare property at a meeting on October 10, 2000.

The Grand Summit, the Marriott property and the Gondola are all components of the Park Avenue Redevelopment Plan, a revitalization plan for the South Lake Tahoe region which drew praise from President Clinton for its vision in promoting growth while protecting the environment.

�This destination is a great addition to our ever-expanding collection of Vacation Ownership properties,� said Steve Weisz, president of Marriott Vacation Club International.  �The Heavenly resort will complement our existing four properties in California in Palm Desert and Newport Beach.�

�We feel that this is an excellent transaction for both companies and the community of South Lake Tahoe,� said American Skiing Company chairman Leslie B. Otten.  �Marriott�s reputation for exceptional quality in vacation ownership development is well deserved, and in keeping with the quality of the ski experience at Heavenly.  Additionally, the transaction meets all tax revenue requirements under the Development and Disposition Agreement of the Park Avenue Redevelopment Project, with the added benefit that the project will come on line sooner than would have happened had we developed the two properties serially.�

Otten added that the transfer will be an advantage to area residents, in that development of both the Grand Summit and the Marriott property will occur simultaneously and thus shorten the length of time major construction will occur in the area.

Headquartered in Newry, Maine, American Skiing Company is the largest operator of alpine ski, snowboard and golf resorts in the United States.  Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada.

Marriott International, Inc. (NYSE: MAR)  is a leading worldwide
hospitality company with over 2,000 operating units in the United States and
58 other countries and territories. 

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.