The facility finances the company's development of a 358-room Grand Summit Resort Hotel at The Canyons in Park City, Utah and a 325-room Grand Summit Hotel at Steamboat in Steamboat Springs, Colorado. The company commenced construction of both hotels this summer, and completion is expected in December 1999. Both facilities are expected to be operational for the 1999- 2000 ski season.

"This is the second series of projects financed with TFC Textron, and we are extremely pleased to have them as one of our development partners," said Christopher E. Howard, chief operating officer of real estate. This facility follows the closing of a $30 million short term mezzanine facility to American Skiing Company Resort Properties, Inc. from BancBoston and Morgan Stanley Senior Funding Inc. providing the initial capital for the Grand Summit projects.

"These hotel projects represent important milestones for our real estate business," said Howard. "This financing is the final step in launching our quartershare product at our western resorts and implementing the first phase of development at our Steamboat and The Canyons alpine villages. With over $65 million in pre-sales, these projects look to be the most successful development our company has undertaken to date."

The Grand Summit Resort Hotel projects are just one component of the company's real estate program. The company also sold out its prototype Sundial Lodge condominium hotel project this summer at The Canyons. All $42.6 million in product sold in 10 hours. The Company began construction on the project this summer.

Construction financing for The Sundial Lodge is being separately arranged with Keybank, N.A. Headquartered in Newry, Maine, the American Skiing Company is the largest operator of alpine ski and snowboard 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.

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. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors in the ski and resort industry; and the weather. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.