American Skiing Company reported strong results in its Christmas/New Years and Presidents' Day holiday periods, and slightly lower skier visits than in the prior fiscal year in the East in January (excluding New Years) due principally to weather related difficulties at its eastern resorts. At Steamboat and The Canyons in the West, the Company recorded a 12% increase in skier visits for the winter operating season to date thru January 29, 2006, due to strong booking patterns and favorable weather creating excellent skiing and riding conditions. The company's eastern resorts were negatively impacted by rain events in January, and recorded a 3% decrease in skier visits for the winter operating season to date thru January 29, 2006.

Despite these challenges, the company achieved a record high level of resort revenues on a same-resort basis for each of the second quarter (an increase of 6% over the prior fiscal year quarter) and first six months of fiscal 2006. Other highlights included a fiscal 2006 year to date increase in cash provided by operating activities of nearly 9% over the 27 weeks ended January 30, 2005.

“I am extremely pleased with our record second quarter revenues. This impressive growth, despite marginal weather in the East, is a reflection of the progress we've made as a company in recent years,” commented B.J. Fair, President and CEO. “Boosted by a fantastic season at Steamboat and The Canyons and a strong backlog of season pass sales, we remain committed to growing American Skiing Company, even in periods of weather related difficulties such as those in the East this year. This will be remembered as a truly remarkable winter season in the West, with Steamboat nearing record amounts of its renowned Champagne Powder(R),” added Fair.

On a GAAP basis, net loss attributable to common shareholders for the second quarter of fiscal 2006 was $11.3 million, or $0.36 per basic and diluted common share, compared with a net loss attributable to common shareholders of $22.1 million, or $0.70 per basic and diluted common share for the second quarter of fiscal 2005. Total consolidated revenue was $112.5 million for the second quarter of fiscal 2006, compared with $106.1 million for the second quarter of fiscal 2005. Revenue from resort operations was $109.9 million for the second quarter of fiscal 2006 compared with $103.4 million for the second quarter of fiscal 2005. The $109.9 million in resort revenues represents a record level on a same-resort basis, since the sale of the Heavenly and Sugarbush resorts in fiscal 2002. The increase in resort revenues reflects the higher business volumes in December of fiscal 2006 relative to the prior fiscal year. Revenue from real estate operations was $2.6 million for the quarter versus $2.7 million for the comparable period in fiscal 2005. Excluding other items (for a reconciliation of other items, please see the tables following this discussion), the net loss was $11.3 million, compared to a net loss of $16.2 million for the second quarter of fiscal 2005.

The loss from resort operations was $9.6 million for the second fiscal quarter of 2006 versus a loss of $21.4 million for the second quarter of fiscal 2005. The decreased loss was associated with a $6.5 million increase in resort revenues, a $1.2 million decrease in depreciation expense, a $6.0 million decrease in write-off of deferred financing costs and loss on extinguishment of senior subordinated notes and a $0.3 million increase in the fair value of the interest rate swap agreement; partially offset by a $1.7 million increase in marketing, general and administrative expenses and a $0.5 million increase in net interest expense. Cost of resort operations did not increase over the second quarter of fiscal 2005, due to the fact that the second quarter of fiscal 2006 contained one less weekly operating period than the second quarter of fiscal 2005. Operating costs for this corresponding period (week ended October 31, 2004) in fiscal 2005 were approximately $2.1 million. Resort revenues for the same period were only $0.4 million. Excluding other items, the loss from resort operations was $9.6 million, compared to a loss of $15.4 million in the second quarter of fiscal 2005.

The loss from real estate operations was $1.7 million for the second fiscal quarter of 2006 compared with a loss of $0.7 million for the comparable quarter in fiscal 2005. The increased loss was associated with a $0.1 million decrease in revenues, a $1.3 million increase in cost of real estate operations due in part to a $0.8 million provision for a probable settlement related to real estate development obligations at The Canyons, partially offset by a $0.2 million decrease in depreciation and amortization expense and a $0.2 million decrease in interest costs due to lower construction loan balances relative to the prior fiscal year.

On a GAAP basis, net loss attributable to common shareholders for the 26 weeks ended January 29, 2006 was $53.5 million, or $1.69 per basic and diluted common share, compared with a net loss attributable to common shareholders of $59.9 million, or $1.89 per basic and diluted common share for the 27 weeks ended January 30, 2005. Total consolidated revenue was $132.6 million for the 26 weeks ended January 29, 2006, compared with $125.6 million for the 27 weeks ended January 30, 2005. Revenue from resort operations was $127.0 million for the 26 weeks ended January 29, 2006 compared with $121.2 million for the 27 weeks ended January 30, 2005. The increase in resort revenues reflects the higher business volumes in December of fiscal 2006 relative to the prior fiscal year. Revenue from real estate operations was $5.6 million for 26 weeks ended January 29, 2006 versus $4.4 million for the 27 weeks ended January 30, 2005. Excluding other items, the net loss was $52.2 million for the 26 weeks ended January 29, 2006, compared to a net loss of $53.9 million for the 27 weeks ended January 30, 2005.

The loss from resort operations was $50.4 million for the 26 weeks ended January 29, 2006 versus a loss of $58.5 million for the 27 weeks ended January 30, 2005. The decreased loss was associated with a $5.8 million increase in resort revenues, a $0.3 million decrease in depreciation expense, a $0.1 million increase in net gain on sale of property, a $6.0 million decrease in write-off of deferred financing costs and loss on extinguishment of senior subordinated notes and a $1.0 million increase in the fair value of the interest rate swap agreement; partially offset by a $0.3 million increase in resort operations costs, a $2.4 million increase in marketing, general and administrative expenses and a $2.4 million increase in net interest expense. Resort operations costs increased by only $0.3 million over the prior year, due to the fact that the fiscal 2006 period contained one less weekly operating period. Operating costs for this corresponding additional period (week ended August 1, 2004) in the previous fiscal year were approximately $1.7 million. Revenues for the same period were approximately $1.6 million. Excluding other items, the loss from resort operations was $50.6 million for the 26 weeks ended January 29, 2006, compared to a loss of $52.6 million for the 27 weeks ended January 30, 2005.

The loss from real estate operations was $3.1 million for the 26 weeks ended January 29, 2006 compared with a loss of $1.3 million for the 27 weeks ended January 30, 2005. The increased loss was associated with a $2.1 million increase in cost of operations, due in part to a $0.8 million provision for a probable settlement related to real estate development obligations at The Canyons and a $1.5 million impairment loss on the sale of retail commercial property at the Steamboat Grand Hotel; partially offset by a $1.2 million increase in real estate revenues, a $0.3 million decrease in depreciation and amortization expense and a $0.3 million decrease in interest costs due to lower construction loan balances relative to the prior fiscal year. Excluding other items, the loss from real estate operations was $1.6 million for the 26 weeks ended January 29, 2006, compared to a loss of $1.3 million for the 27 weeks ended January 30, 2005.

For the 26 fiscal weeks ended January 29, 2006 total skier visits at ASC's eastern resorts decreased by approximately 3% compared to the 27 fiscal weeks ended January 30, 2005, reflecting weather difficulties in January, partially offset by year over year increases in business volumes in the Christmas/New Years holiday period. Total skier visits at the Company's western resorts increased by 12% compared to the 27 fiscal weeks ended January 30, 2005, reflecting generally positive operating conditions throughout the winter operating season to date. Although the 2005 fiscal year includes an extra week of operations due to its 52-53 week fiscal year policy, the winter operating season of fiscal 2005 includes only one additional calendar day of winter operations relative to fiscal 2006.

Beginning in fiscal 2006, the Company revised the methodology used to estimate skier visitation at its eastern resorts. The Company now uses scanning of certain lift ticket products to estimate skier visitation and believes this methodology to be a more accurate reflection of skier visitation levels. While this methodology has changed, the Company believes that any discrepancies in such methods in comparison with prior years are immaterial to total skier visitation levels reported.

Despite record second fiscal quarter revenues, the Company expects some negative financial impact to its third fiscal quarter revenues as a result of adverse weather at its eastern resorts in February. The Company also expects this negative impact to be partially offset by generally favorable operating conditions and skier visitation levels at its western resorts.


                   American Skiing Company and Subsidiaries
       Unaudited Condensed Consolidated Financial Statement Information
                   (in thousands except per share amounts)

                       13 Weeks      14 Weeks      26 Weeks      27 Weeks
                         Ended         Ended         Ended         Ended
                       January 29,   January 30,   January 29,   January 30,
  Net revenues:           2006          2005          2006          2005
    Resort             $109,887      $103,411      $127,034      $121,231
    Real estate           2,612         2,663         5,581         4,389
      Total net
       revenues         112,499       106,074       132,615       125,620

  Operating expenses:
    Resort               67,766        67,786        91,729        91,395
    Real estate           3,443         2,155         5,385         3,263
    Marketing, general
     and administrative  17,885        16,210        29,453        27,027
    Depreciation and
     amortization        13,061        14,400        15,971        16,679
    Gain on sale of
     property                --            --          (169)           --
    Impairment loss on
     property sold           --            --         1,533            --
      Total operating
       expenses         102,155       100,551       143,902       138,364

  Income (loss) from
   operations            10,344         5,523       (11,287)      (12,744)

  Interest expense
   and other, net        22,015        21,684        43,269        41,137
  Write-off of deferred
   financing costs and
   loss on extinguishment
   of senior subordinated
   notes                     --         5,983            --         5,983
  Increase in fair value
   of interest rate
   swap agreement          (350)           --        (1,036)           --
  Net loss             $(11,321)     $(22,144)     $(53,520)     $(59,864)

  Basic and diluted
   net loss per
   common share:
  Net loss               $(0.36)       $(0.70)       $(1.69)       $(1.89)
  Weighted average
   common shares
   outstanding
   - basic and diluted   31,738        31,738        31,738        31,738