Vail Resorts, Inc. announced financial results for the fourth quarter and fiscal year ended July 31, 2003.

The Company has historically used EBITDA when reporting its financial results for each of its reportable segments:
mountain, lodging, resort (the combination of mountain and lodging) and real estate. EBITDA was defined by the Company as segment net revenue less segment operating expense plus segment equity income. In conjunction with the recently adopted Securities and Exchange rules regarding the use of non-GAAP financial measures, the Company will henceforth use the term “Reported EBITDA”
when reporting financial results. The Company defines Reported EBITDA in the same manner in which it historically defined EBITDA.

FOURTH QUARTER

Mountain revenue for the fourth quarter of fiscal 2003 was $34.8 million,
a 9.3% increase from $31.9 million for the comparable period last year.

Lodging revenue for the fourth quarter fell $1.4 million, or 3.5%, to
$39.3 million.

Resort revenue, the combination of mountain and lodging revenues, rose
$1.6 million, or 2.2%, to $74.1 million. Real estate revenue for the fourth
quarter fell $4.5 million to $5.0 million, and total revenue declined $3.0
million, or 3.6%, to $79.1 million.

Loss from operations for the fourth quarter increased $7.7 million, or
16.8%, to a loss of $53.6 million compared to a loss of $45.9 million for the
same period last year.

Reported EBITDA for the mountain segment decreased 5.7% to a loss of $27.1
million compared to a loss of $25.7 million for the comparable period last
year.

Reported EBITDA for the lodging segment decreased $2.8 million to a loss
of $4.1 million for the quarter; $2.2 million of the decrease was attributed
to the Ritz-Carlton, Bachelor Gulch, which opened in November of fiscal 2003.
As the Company uses the equity method of accounting for the Ritz-Carlton,
Bachelor Gulch, included in the fourth quarter loss is $0.6 million of
depreciation and $0.9 million of interest expense.

Fourth quarter Resort Reported EBITDA was a loss of $31.2 million, a 16.0%
decrease from the comparable period last year, and “same-store” Resort
Reported EBITDA, excluding the Ritz-Carlton, fell 7.7% versus the fourth
quarter in fiscal 2002.

Real Estate Reported EBITDA for the quarter declined $2.3 million to a
loss of $1.0 million from a profit of $1.8 million in the same quarter a year
ago, due to the timing of real estate closings.

Fourth quarter net loss increased $0.4 million to a loss of $33.7 million,
or $0.96 per diluted share, compared to a loss of $33.3 million, or $0.95 per
diluted share, for the same period last year.

FISCAL YEAR ENDED JULY 31, 2003

Mountain revenue for the fiscal year ended July 31, 2003 was $470.1 million, a 17.4% increase from $400.5 million for the comparable period last year. Excluding the acquisition of the Heavenly Ski Resort, the fiscal year
“same-store” mountain revenue rose 2.6% compared to the same period last year.

Lodging revenue for the fiscal year rose $8.9 million, or 5.9%, to $159.8
million, and excluding the fiscal 2002 acquisitions, “same-store” lodging
revenue declined 1.9% compared to the same period last year.

Resort revenue increased $78.6 million, or 14.3%, to $630.0 million.
Excluding the fiscal 2002 acquisitions, “same-store” resort revenue increased
1.6% compared to the same period last year.

Real estate revenue for the period rose $16.5 million to $80.4 million, a
25.9% increase compared to the same period last year, and total revenue rose
$95.1 million, or 15.5%, to $710.4 million.

Income from operations for the fiscal year decreased $14.6 million, or
29.7%, to $34.5 million compared to the same period last year.

Mountain Reported EBITDA increased $7.0 million, or 7.6%, to $100.4
million. Excluding the Heavenly acquisition, “same-store” Reported EBITDA for
the mountain segment fell 13.0% compared to the same period last year.

Lodging Reported EBITDA decreased $10.4 million, or 76.3%, to $3.2 million
for the year, with $5.8 million of the decrease attributed to the Ritz-
Carlton, Bachelor Gulch, including $1.5 million of depreciation and $1.8
million of interest expense. Excluding the Ritz-Carlton and the acquisitions
made in fiscal 2002, Reported EBITDA for the lodging segment fell 16.2%.

Resort Reported EBITDA for the year was $103.6 million, a 3.1% decrease
from the comparable period last year, and “same-store” Resort Reported EBITDA
(excluding Heavenly, the fiscal 2002 lodging acquisitions, and the Ritz-
Carlton) fell 13.3% versus the prior year.

Real Estate Reported EBITDA for the fiscal year rose $2.4 million, or
16.0%, to $17.7 million.

Net loss for the year was $8.5 million, or a loss of $0.24 per diluted
share, compared to net income of $7.1 million, or income of $0.20 per diluted
share, for the same period last year.

Adam Aron, Chairman and Chief Executive Officer, commented, “Obviously,
Vail Resorts' financial results for fiscal 2003 are very disappointing.
Several factors combined to generate Vail Resorts' first net loss in ten years
and the first since becoming a public company in 1997. Far and away, the
biggest problem we had to address in fiscal 2003 was the build up to and
actual war with Iraq during our most profitable months, as well as the war's
aftermath, which taken together depressed the Company's mountain and lodging
revenues from January through fiscal year-end in July. Also notable are: pre-
opening startup expenses and first year net losses of approximately $6 million
associated with the Ritz-Carlton, Bachelor Gulch; approximately $3 million in
severance expense resulting from our efforts to streamline the Company's
costs; an increase in workers compensation expenses and reserves; the national
rise in employee health care costs from which we are not immune; and a
surprising court ruling, which we have appealed, in litigation concerning
undeveloped land near Vail Mountain, causing the Company to take a $4.8
million asset impairment charge.”

Aron added, “Even so, Vail Resorts made notable progress in fiscal 2003.
Highlights in our mountain division include Beaver Creek having a record ski
season with over 718,000 skier visits up from 658,000 in the prior year,
primarily due to the November 2002 opening of the impressive new Ritz-Carlton,
Bachelor Gulch. Also, as we said earlier in the year, Heavenly performed much
better than expected, even with the challenges presented by world events.
Heavenly's skier visits rose by more than 125,000 and confirmed our judgement
in acquiring Lake Tahoe's leading ski resort in May of 2002 on favorable
terms. As for lodging, the Vail Marriott underwent an extensive renovation
and esthetics upgrade. And, revenues markedly improved at the Snake River
Lodge and Spa as a result of its comprehensive renovation in fiscal 2002. Our
real estate group had another record financial year. It also submitted formal
plans for approval to the town of Vail for 'Vail's New Dawn,' the long awaited
re-development for a refined Vail Village and a new Lionshead. Additionally,
we received final zoning approval for a new residential base village at
Breckenridge's Peak 7 and Peak 8.”

FISCAL 2004

Aron said, “We continue to believe that Vail Resorts is very well
positioned for 2004 and beyond. Our confidence stems from improving economic
conditions, the hope that new military conflict does not erupt, and the
inherent consumer appeal of our ski resorts, luxury hotels and new real estate
developments. We are always proud when others recognize the excellence of our
resorts. SKI Magazine, in October 2003 in its annual readers' poll, once
again selected Vail as the number one ski resort in North America.
Breckenridge, Keystone and Heavenly each moved up four spots in the rankings,
such that three of our five resorts now rank in North America's top ten, and
all five of our resorts rank in the top 15. Similarly, our lodging group
fared well. Conde Nast Traveler, in its 2003 annual Gold List readers poll,
praised three of our 10 RockResorts as well as our Grand Teton Lodge Company's
Jenny Lake Lodge. As for the efforts of our real estate group, Golf Magazine,
in its March 2003 editor's picks, named Red Sky Ranch one of the ten best new
golf courses to open in the United States in the past year.”

“Looking to fiscal 2004, we proceed with optimism that the outbreak and
aftermath of war with Iraq will not scar our fiscal 2004 financial results,
and that the underlying national economy is picking up strength. We are
heartened that cold temperatures and natural snowfall have arrived, as but one
example with almost three feet of fresh snow at Beaver Creek since November
first. We are similarly comforted that year-to-date revenues booked into our
central reservations system across all five of our ski resorts combined are up
8% versus this time last year, and bookings for the Christmas holidays look
especially bright for Vail and Breckenridge, the two most visited of our
resorts. Similarly, air bookings into the Vail Valley's Eagle County airport
are also encouraging, up 3% year-over-year so far. This is all particularly
positive news, considering we had a strong early season last year, while our
weakness in bookings occurred last year deeper into the ski season as talk of
war escalated. Also, Colorado Front Range advance season pass sales, which
account for approximately 20% of annual lift ticket revenues for our four
Colorado resorts, have also been robust this year, up 5%. And finally, and
perhaps of greatest importance, in June we announced that our management group
has worked diligently to identify year-over-year expense reduction initiatives
totaling more than $25 million that we believe will be realized in the 2004
fiscal year, all the while preserving Vail Resorts' longstanding commitment to
providing an exceptional guest experience,” added Aron.

Aron further stated, “For these reasons, we are upbeat about the potential
growth in the financial results for our mountain and lodging segments in
fiscal 2004. Of course, this assumes normal snowfall, no new significant war
or terrorism activity, and no additional adverse conclusions to matters in
litigation.”

Aron concluded by saying, “As such, we currently expect Mountain Reported
EBITDA for fiscal 2004 to range from $120 million to $130 million and Lodging
Reported EBITDA to range from $6 to $12 million, with total Resort Reported
EBITDA between $130 and $140 million. We also anticipate another good year in
our real estate operations and are comfortable giving guidance of $13 to $19
million for Real Estate Reported EBITDA in fiscal 2004. We are also currently
projecting positive net income in fiscal 2004, ranging from $2 million to $10
million.”



                                Vail Resorts, Inc.
                        Consolidated Financial Statements
                     (in thousands except per share amounts)

                             Three Months Ended             Year Ended
                                  July 31,                   July 31,
                              2003         2002         2003         2002

     Net revenue:
       Mountain            $34,834      $31,858     $470,148     $400,478
       Lodging              39,291       40,708      159,849      150,928
       Real estate           4,968        9,501       80,401       63,854
     Total net revenue      79,093       82,067      710,398      615,260
     Operating expense:
       Mountain             61,511       58,426      370,779      308,896
       Lodging              41,039       42,036      150,624      137,259
       Real Estate           5,211        7,727       66,642       51,326
       Depreciation &
        amortization        19,600       19,632       82,242       68,480
       Asset impairment
        charge               4,830           --        4,830           --
       Loss on disposal
        of fixed assets        506          134          794          226
     Total operating
      expense              132,697      127,955      675,911      566,187
     Income from
      operations          (53,601)     (45,888)       34,487       49,073
     Other income
      (expense)
       Mountain equity
        investment
        income, net          (458)          886        1,009        1,748
       Lodging equity
        investment loss,
        net                (2,324)          104      (5,995)         (57)
       Real estate equity
        investment income,
        net                  (760)           70        3,962        2,744
       Investment income       927          335        2,011        1,295
       Interest expense   (12,519)     (11,272)     (50,001)     (38,788)
       Gain on put
        option, net            198           --        1,569           --
       Other income
        (expense), net         (2)          223           17          155
       Minority interest
        in income of
        consolidated joint
        ventures             1,832        2,640      (1,064)        (569)
     Income (loss) before
      provision for
      income taxes        (66,710)     (52,902)     (14,005)       15,601
     Benefit (provision)
      for income taxes      33,037       19,642        5,478      (6,843)
     Income (loss) before
      cumulative effect
      of change in
      accounting
      principle           (33,673)     (33,258)      (8,527)        8,758
       Cumulative effect
        of change in
        accounting principle,
        net of income
        taxes of $1,046         --           --           --      (1,708)
     Net income (loss)   $(33,673)    $(33,258)     $(8,527)       $7,050

     Basic weighted
      average shares        35,191       35,150       35,170       35,141
     Diluted weighted
      average shares        35,191       35,150       35,170       35,182

     Per share
      amounts (basic):
     Income (loss) before
      cumulative effect
      of change in
      accounting
      principle            $(0.96)      $(0.95)      $(0.24)        $0.25
       Cumulative effect
        of change in
        accounting
        principle,
        net of income
        taxes                   --           --           --       (0.05)
     Net income (loss)     $(0.96)      $(0.95)      $(0.24)        $0.20

     Per share amounts
      (diluted):
     Income (loss) before
      cumulative effect
      of change in
      accounting
      principle            $(0.96)      $(0.95)      $(0.24)        $0.25
       Cumulative effect
        of change in
        accounting principle,
        net of income taxes     --           --           --       (0.05)
     Net income           $ (0.96)     $ (0.95)     $ (0.24)        $0.20
     Other Data:
     Mountain Reported
      EBITDA             $(27,135)    $(25,681)     $100,378      $93,330
     Lodging Reported
      EBITDA               (4,072)      (1,224)        3,230       13,612
     Resort Reported
      EBITDA              (31,207)     (26,905)      103,608      106,942
     Real Estate Reported
      EBITDA              $(1,003)       $1,844      $17,721      $15,272



                                Vail Resorts, Inc.
                 Resort Revenue by Business Line and Skier Visits
                                  (in thousands)

                       Three Months Ended                   Year Ended
                            July 31,                         July 31,
                    2003      2002   % Change      2003       2002  % Change
     Business Line
     Lift tickets     $61    $(123)    149.6%   $196,150   $161,923   21.1%
     Ski school        26      (76)    134.2%     55,392     46,000   20.4%
     Dining         4,031     4,646   (13.2)%     51,444     45,378   13.4%
     Retail/
      rental       13,271    11,827     12.2%    107,714     94,982   13.4%
     Other         17,445    15,584     11.9%     59,448     52,195   13.9%
     Total
      Mountain
      Revenue      34,834    31,858      9.3%    470,148    400,478  17.4%

     Total
      Lodging
      Revenue      39,291    40,708    (3.5)%    159,849    150,928   5.9%

     Total
      Resort
      Revenue     $74,125   $72,566      2.1%   $629,997   $551,406   14.3%


                         Three Months Ended                 Year Ended
                              July 31,                       July 31,
                       2003    2002   % Change      2003       2002 % Change
     Skier Visits
     Vail              --        --      0.0%      1,611      1,536    4.9%
     Beaver Creek      --        --      0.0%        718        658    9.1%
     Keystone          --        --      0.0%      1,039      1,069  (2.8)%
     Breckenridge      --        --      0.0%      1,425      1,469  (3.0)%
     Heavenly           2        --    100.0%        937         --  100.0%
     Total Skier
      Visits            2        --    100.0%      5,730      4,732   21.1%



                                Vail Resorts, Inc.
                          Selected Quarterly Information
                     (in thousands, except per share amounts)

                                          Fiscal 2003
                   Quarter      Quarter      Quarter    Quarter  Fiscal Year
                    Ended        Ended        Ended      Ended        Ended
                 October 31,  January 31,   April 30,  July 31,    July 31,
                     2002         2003         2003       2003         2003

     Mountain
      revenue       $34,441     $189,163     $211,710    $34,834    $470,148
     Lodging
      revenue        40,058       34,981       45,519     39,291     159,849
     Real estate
      revenue        39,354       24,191       11,888      4,968      80,401
       Total net
        revenue     113,853      248,335      269,117     79,093     710,398

     Mountain
      expense        65,480      124,300      119,489     61,510     370,779
     Lodging
      expense        38,739       37,334       33,513     41,038     150,624
     Real estate
      expense        27,546       22,294       11,592      5,210      66,642

     Income (loss)
      from
      operations   (36,553)       43,266       81,375   (53,601)      34,487

     Mountain
      equity
      investment
      income          1,089          451         (74)      (457)       1,009
     Lodging
      equity
      investment
      income        (1,307)      (1,975)        (390)    (2,323)     (5,995)
     Real estate
      equity
      investment
      income          3,070          771          881      (760)       3,962

     Pretax
      income       (43,218)       29,002       66,922   (66,711)    (14,005)

     Net
      income       (25,114)       16,724       33,536   (33,673)     (8,527)

     Earning
      per share:
       Basic        $(0.71)        $0.48        $0.95    $(0.96)     $(0.24)
       Diluted      $(0.71)        $0.47        $0.95    $(0.96)     $(0.24)