Vail, Colo., - Dec 8, 1999 - Vail Resorts, Inc. (NYSE: MTN) today announced financial results for the first quarter of fiscal 2000 which ended October 31, 1999.

Resort Revenue, which excludes revenue from real estate operations, for the quarter increased 62.5% to $56.9 million from $35.0 million in the comparable period of fiscal 1999. Total Revenues for the quarter, which includes revenues from real estate operations, grew 35.6% to $65.8 million versus $48.6 million in the fiscal first quarter last year. The Company's newly acquired Grand Teton resort contributed significantly to the revenue growth for the quarter.

For the first quarter of fiscal 2000, the Company reported a loss from resort operations before interest, income taxes, depreciation and amortization ("Resort EBITDA") of $20.4 million compared to a loss of $25.0 million last year, an improvement of 18.4%.

The net loss for the quarter was $22.4 million, or $0.64 per diluted share, compared to last year's first quarter net loss of $20.5 million, or $0.59 per diluted share. The loss for the quarter was anticipated due to the seasonality of the Company's ski resort operations.

At the Company's Colorado ski resorts, Keystone began its ski season on October 22, followed by Breckenridge on October 29, with Vail and Beaver Creek opening on November 19, and November 24, respectively. As a result, total skier days for the first quarter of fiscal 2000 were nominal as expected.

Adam Aron, Chairman and Chief Executive Officer of Vail Resorts said, "Vail Resorts performed well during the first quarter of fiscal 2000, further expanding our summer business. We were especially pleased with the performance of the Grand Teton Lodge Company during its first summer under our ownership."

Commenting on the current ski season, Aron further added, "There have been many positive developments in our business for the 1999/2000 ski season, most notably increased season pass sales, positive booking trends at Vail/Eagle County Airport, the successful implementation of our 1999 resort improvement program and the scheduled opening of Vail's Blue Sky Basin on January 6, 2000. Even so, we have been disappointed by softer than normal bookings for our second fiscal quarter, especially during the millennium holiday period which is showing some weakness across the whole of the U.S. travel industry. At the same time, we are encouraged by our current booking position for our third fiscal quarter, especially for the months of February and March."

Vail Resorts Inc. is the premier mountain resort operator in North America. The Company operates the Colorado mountain resorts of Vail, Breckenridge, Keystone and Beaver Creek and the Grand Teton Lodge Company in Jackson Hole, 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. 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; Year 2000 impacts on travel patterns and generally; and the weather. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.

Vail Resorts Contact:
Justine Reed
(970) 845-2714
jreed@vailresorts.com