Breaking News: Steamboat sold to Intrawest

[tex1230]

PARK CITY, Utah, Dec. 19 /PRNewswire-FirstCall/ -- American Skiing Company

(OTC Bulletin Board: AESK) announced today that it had entered into a

definitive agreement to sell Steamboat Ski & Resort Corporation, in Steamboat

Springs, Colorado, to Steamboat Acquisition Corporation, an affiliate of

Intrawest ULC, for $265 million. The announced sale follows the review of

strategic options for the resort announced in July.

Steamboat was the nation's eighth most visited resort in 2006, with over

one million skier visits. Known as Ski Town USA®, and renowned for its

Champagne Powder®, Steamboat was recently named the "#1 Family Resort in the

West" by SKI Magazine.

Headquartered in Vancouver, British Columbia, Intrawest ULC is a privately

held company that, together with its affiliates, has interests in ten North

American mountain resorts.

"In light of favorable market conditions and considerable interest from

prospective buyers, ASC decided to pursue a sale of the resort. The proceeds

of this transaction will reduce outstanding debt and allow us to focus on

opportunities in our portfolio of resorts and their related real estate," said

ASC President and CEO B.J. Fair. "We look forward to working with the entire

Intrawest team to ensure a smooth transition and a continued outstanding

resort experience for our guests," added Fair.

Included in the sale are the resort and all resort-owned operations, all

of Steamboat's resort-owned real estate assets, the commercial core of the

Steamboat Grand Hotel & Condominiums and the company's interest in the Walton

Pond Apartments complex.

The transaction is subject to customary closing conditions, including

Hart-Scott-Rodino antitrust approval and consent of the United States Forest

Service, and is expected to close on or before March 31, 2007.

The purchase price of $265 million includes approximately $4 million in

assumed debt, and is subject to working capital and seasonal earnings

adjustments. After closing, it is anticipated that net proceeds from the sale

will be used to repay all existing senior debt and outstanding revolver

balances under ASC's senior credit facility and certain other indebtedness.

"Though it's only December, Steamboat is off to a terrific start for the

winter season with a number of new improvements, such as a new high-speed lift

in the resort's Sunshine area and renovations of the two main on-mountain

dining facilities. As the resort makes the transition to new ownership, the

Steamboat team will remain focused on the same qualities that make Steamboat

the West's favorite family resort: providing the best possible vacation

experience for its guests," said Steamboat's President and Managing Director

Chris Diamond.

Bear Stearns and Main Street Advisors acted as financial advisors to

American Skiing Company in connection with the transaction. Goodwin Procter

LLP acted as legal advisor to American Skiing Company and Skadden, Arps,

Slate, Meagher & Flom LLP and Jacobs Chase Frick Kleinkopf & Kelley LLC acted

as legal advisors to Intrawest.

About American Skiing Company

Headquartered in Park City, Utah, American Skiing Company is one of the

largest operators of alpine ski, snowboard and golf resorts in the United

States. Its resorts include Killington, Pico and Mount Snow in Vermont; Sunday

River and Sugarloaf/USA in Maine; Attitash in New Hampshire; Steamboat in

Colorado; and The Canyons in Utah. More information is available on the

company's web site, www.peaks.com.

Certain statements contained in this press release constitute forward-

looking statements within the meaning of Section 27A of the Securities Act of

1933, as amended (the Securities Act), and Section 21E of the Securities

Exchange Act of 1934, as amended (the Exchange Act). These forward-looking

statements are not based on historical facts, but rather reflect our current

expectations concerning future results and events. Similarly, statements that

describe our objectives, plans or goals are or may be forward-looking

statements. We have tried, wherever possible, to identify such statements by

using words such as "anticipate", "assume", "believe", "expect", "intend",

"plan", and words and terms of similar substance in connection with any

discussion of operating or financial performance. Such forward-looking

statements involve a number of risks and uncertainties. In addition to factors

discussed above, other factors that could cause actual results, performances

or achievements to differ materially from those projected include, but are not

limited to, the following: the failure to satisfy any of the conditions to

closing of the purchase agreement for the Steamboat resort, or the buyer's

refusal to close for any reason; and other factors listed from time to time in

our documents we have filed with the Securities and Exchange Commission. We

caution the reader that this list is not exhaustive. We operate in a changing

business environment and new risks arise from time to time. The forward-

looking statements included in this press release are made only as of the date

of this document and under Section 27A of the Securities Act and Section 21E

of the Exchange Act, we do not have or undertake any obligation to publicly

update any forward-looking statements to reflect subsequent events or

circumstances.

SOURCE American Skiing Company

CONTACT:

David Hirasawa, Investor and Media Communications of American Skiing Company,

+1-435-615-0396

-0- Dec/19/2006 14:21 GMT

[Guest SAVEtheSWALLOWTAIL]

so it was just sold to friends in the same game.

[pebu]

I think Steamboat Aquisition Corporation should go by their acronym... SAC...

[tex1230]

what's SAC?

[boarderboy]

Haven't been to Steamboat - it's #1 on my future destinations list. However, if Intrawest does to Champagne Powder what they did to once-glorious Snowshoe (W.Va), I better make it this season.

The soul of glisse is beyond the understanding of corporate megaliths.

bah humbug

[tex1230]

Maybe there will be a stratton / steamboat pass next year...that would be nice

[Allee]

We went to opening day at Kicking Horse on Dec 2, lured by the wonderful snow reports. They were scheduled to open Dec 15, and had decided to open early for the 2 previous weekends to make the most of the snow cover. So as you can imagine, most of the staff have yet to arrive and the place is totally underprepared for their biggest single day ever.

We get there and it's a zoo. There are three lifts from the base, only one (the gondola) is open, and it's experiencing intermittent stopping problems. The lineup started at 7.30 am and by 11 am the queue to get on the gondola was between an hour and an hour and 15min (depending on which queue you were in). Once you got up the mountain, the wait at the top chair (the only other chair running) was 15-20 mins.

So people are starting to get a little annoyed at the wait, especially when the gondola keeps stopping. Some of them go in to ask for their money back.

In the interests of good PR, would you :

1) Apologise for the long wait and the lift issues, give them a bright smile and an any day pass for this season, and allow them to leave in enough time to make the afternoon at Lake Louise, knowing they'll be back - OR

2) Tell them "well, you saw the lineups when you bought your ticket, and the gondola is only stopping for a few minutes at a time. Suck it up, you whinger".

If you chose 2) you could work for Intrawest!!

Needless to say, we were NOT impressed. If it hadn't been for the fact that one of our party had already rented gear, we'd have voted with our feet and happily blown off the free day on our Snowmax cards....

The snow was amazing, but if I'd paid $50 for my ticket and got four runs all day, I'd have been pretty pi$$ed.

[Guest SAVEtheSWALLOWTAIL]

our mountain expects to start off with not a lot open and a lot of people. they have deals on tickets the first few weeks. thirty something i think.

as far as your bad day. im sure if you write them a nice letter they will help you out.

the first time i went to ferinie it was late in the season and it was terrible. i never asked for a refund because i knew it probably wouldn't be that great but would have lots of fun doing shot skis with my friends. sure beats hiking up!

[Allee]

The ticket prices weren't reduced, though. Full whack from day 1. Like I said, mine was reduced because of the Snowmax card ($34) so I couldn't really complain, it's just the attitude that burned me up. Given the amount of choice that skiers and riders in Alberta have, it's short sighted to say the least.

And this wasn't just coming from some jock in customer service either - this was no less than the assistant manager, or so it said on his name tag. Gives you a few clues as to corporate sentiment.

RCR (Fernie) does discount their tickets quite steeply at the beginning of the season, and if you have a RCR card at the end as well. So they at least recognise that you're not getting full value for your $$...

[bobdea]

is, everybody at steamboat used to bitch like ASC is the devil

now they got the real deal, steamboat already had one of the more expensive season passes in the country, for a place that is so far off the beaten path in particular

the intrawest improvement plan probably is something like putting in a bunch of condos, raising ticket prices and making damn sure those grungy locals can't afford to ride on that hill, maybe come up with a dress code too.

[skategoat]

bobdea hit the nail on the head. Intrawest is about real estate, not skiing. They basically ruined Mt. Tremblant. And now that they've wrung every easy dollar out of the place and have reached the point of diminishing returns (not to mention incurring the wrath of the militant Quebec unions), they are trying to sell the place.

I'm feeling very sorry for Steamboat locals.

[kipstar]

mammoth is heaps worse now than before...thanks Intrawest.

Squaw village is the mcdonalds of ski villages....thanks intrawest.

Ah well, maybe it will be different at Steamboat, maybe they make sexy time explosion on mountain.

NOT.

Intrawest are well lame. But good if you own realestate in Steamboat, I guess.

[Justin A.]

I was visiting my great grandmother a few years ago in Jersey and my family decided to take a day to go up to Mountain Creek. Biggest. Load. Of. Bull****. EVER.

1. They charged us $25 to park "because it's a friday".

2. 3/4 the mountain was closed, and they were charging like...$60 a ticket, or something like that.

3. Problem with said ticket is that it's only valid for the 700 vertical feet on the rinky dink mountain.

4. The ticket line was over an hour and a half long that day, since they only had one ticket window open . After waiting in line for 10 minutes, we decided to get the hell out of there and not waste our time standing and sliding in Calcutta.

Intrawest may in fact be THE worst ski company ever. They have no concept of skiing, only development and causing crowds and mess. I've never been back to an intrawest resort after my experience at Mountain Creek. So much for ever wanting to go to Steamboat. I'll guess I'll go to Telluride instead.