Vail, Colo., - December 7, 2000 - Vail Resorts, Inc. (NYSE: MTN) today announced financial results for the first quarter of fiscal 2001, which ended October 31, 2000.

Resort Revenue, which excludes revenue from real estate operations, for the quarter increased 8.1% to $61.5 million from $56.9 million in the comparable period of fiscal 2000. Total Revenues for the quarter, which includes revenues from real estate operations, grew 7.0% to $70.4 million versus $65.8 million in the fiscal first quarter last year.

For the first quarter of fiscal 2001, the Company reported a loss from resort operations before interest, income taxes, depreciation and amortization ("Resort EBITDA") of $18.5 million compared to a loss of $20.4 million last year, an improvement of 9.5%. Losses in the fiscal first quarter are anticipated due to the seasonality of the Company's ski resort operations.

The net loss for the quarter was $21.2 million, or $0.61 per diluted share, compared to last year's first quarter net loss of $22.4 million, or $0.64 per diluted share.

At the Company's Colorado ski resorts, Keystone was first to kick off the season by opening on October 28, followed by Breckenridge on November 3. Vail opened 2 days earlier than expected on November 15, and Beaver Creek opened on schedule on November 17. As a result of minimal ski operations in the first fiscal quarter, total skier days 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 2001, benefiting from continued solid performance by the Grand Teton Lodge Company as well as the expansion of summer activities at our Colorado ski resorts, including the opening of the River Course and the expanded Conference Center at Keystone."

Commenting on the current ski season, Aron said, "We are pleased with early ski season results so far this year. All four of our Colorado ski resorts have excellent skiing conditions and have enjoyed skier visits well ahead of last year. Although, given that only about 5% of the ski season has been completed to date, it is far too early to draw any firm conclusions from this early ski season success."

Aron further added, "Looking ahead, season pass sales, which take place mostly within Colorado, are up more than $15 million over last year (it is important to note, however, that most of this increase will likely represent lift tickets that were sold on a daily basis last year). As for destination guests visiting our resorts, we only have advance bookings data from a small portion of the overall bed base at our four resorts, and only half of ski season bookings are made prior to December 1. As such, the current indications we have about advance lodging bookings are inconclusive, nonetheless such bookings appear strong with an approximate 20% increase across our Colorado resorts as of the end of November compared to last year. Conversely, air bookings into Vail's Eagle County airport are up only modestly. In summary, we are quite pleased with the direction of the season so far, and are encouraged as we head into our busy holiday season."

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. The Vail Resorts website is www.vailresorts.com. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN).

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 industries; failure or delay in receipt of anticipated insurance recoveries; 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