PR: Vail Invests 59-Million Dollars In Improvements
Renovations to the Keystone Lodge and Great Divide Lodge in Breckenridge.

(7-20-98)

(Press Release, July 13, 1998)—Vail Resorts, Inc. (NYSE: MTN) today announced plans to invest approximately 59-million dollars for the upcoming winter season in resort improvements for its Vail, Breckenridge, Keystone, and Beaver Creek mountain resorts. The capital improvements are part of the company's growth strategy to enhance its ski operations and related amenities.

"A core strategy of Vail Resorts is to ensure that we offer the highest standard of quality to our guests," commented Adam Aron, chairman and chief executive officer. "With 59-million dollars to be invested in our resorts this summer, we once again reaffirm our long-term commitment to be the leading winter-resort operator in the world."

Here's a look at what the company is planning on improving this season:

Approximately eight-million dollars is planned to be spent on enhancing guest service and direct-to-lift systems.

The ability for guests to charge on-mountain expenditures with their ski pass will be expanded to include more on-mountain restaurants, retail stores, and rental outlets.

The consolidated central reservations operations will be upgraded to further improve guests' ability to have one-stop shopping in planning their vacation.

Approximately ten-million dollars is planned to be invested at Vail, which will go toward developing a new mid-mountain attraction called Chaos Canyon that will provide additional innovation and excitement to the children's ski experience.

The grooming fleet will be expanded at Vail as well. The Lodge, purchased by the company in October 1997, will undergo a lobby-area remodel and other upgrades. Adventure Ridge at Eagle's Nest, the day and night activities center atop Vail Mountain, will be expanded with new attractions. There will also be additional on-mountain improvements including snowboarding enhancements and attractions and upgrades to restaurant facilities.

Approximately fourteen-million dollars will be invested at Breckenridge. The first new on-mountain restaurant in ten years will be constructed, with seating for approximately 300 people. Additional on-mountain restaurant upgrades will be performed at Vista Haus at the top of Peak 8. The Great Divide Lodge, purchased by the company in October 1997, will undergo a 3.6-million-dollar renovation.

The grooming fleet is being expanded. In addition, a new Pipe Dragon will be purchased to further improve the snowboard experience.

Approximately eighteen-million dollars will be invested at Keystone. This will go toward replacing The Santiago lift, a fixed grip triple chair, with the resort's fifth high-speed quad chairlift, providing faster and easier access to Keystone's North Peak.

The Jackwhacker trail will be transformed into Colorado's newest, most exciting snowboarding park, and a Pipe Dragon is being added to the resort's halfpipe grooming arsenal.

Additional on-mountain improvements include the introduction of Adventure Point at Keystone, playing off of the success of Adventure Ridge at Vail, and featuring a tubing hill located on Keystone Mountain; as well as an ice-climbing tower and additional children's skiing attractions.

The second phase of renovation to the Keystone Lodge, which already carries AAA's prestigious Four-Diamond rating, will focus on further upgrades to guest rooms, conference facilities, and public spaces.

Approximately nine-million dollars will be invested at the Beaver Creek resort. Some of this will go toward doubling of capacity of the children's ski school center and continued upgrades and refinements are planned for Beaver Creek Village.

A new electronic guest information system will make it easier for skiers and boarders to find their way around the base area, while improvements to the snowmaking system and two additional snowcats will further enhance an already truly premium guest experience.

In anticipation of the 1999 World Alpine Ski Championships, numerous other restaurant and facility improvements will be made.

Separately, the company plans to invest approximately 40-million dollars in real estate development.

Significant projects include ski infrastructure in Beaver Creek, preliminary planning for golf course development near Beaver Creek currently awaiting local government approval, continued village development in Bachelor Gulch and Arrowhead at Beaver Creek, and architectural and engineering planning for future developments at each of the company's resorts.

"This aggressive capital investment program reflects our commitment to making our four resorts the highest-quality destination experience in the world," says Aron. "We are committed to quality and growth and are confident that these enhancements will enable us to deliver excellence for our customers and growth in earnings for our shareholders."

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.

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