PARK CITY, Utah ??” American Skiing Company (OTC Bulletin Board: AESK) today announced its financial results for the third quarter of fiscal 2006. The Company reported particularly strong visitation levels for its western resorts in the winter operating season, bolstered by generally excellent skiing and riding conditions. These strong results coupled with the successful sale of nearly all remaining fractional inventory in the Company’s real estate segment resulted in an increase in net income of $5.6 million or 23% over the third quarter of fiscal 2005. The Company’s eastern resorts were challenged by adverse weather conditions for much of the latter half of the winter operating season, resulting in decreased Company-wide skier visits compared to the third quarter of fiscal 2005.

The Canyons resort in Park City, Utah experienced explosive growth in fiscal 2006, with an increase in skier visits of over 16%, compared to nationwide growth in skier visits of approximately 4%. The increase resulted in yet another record year for skier visits at Utah’s largest winter resort. The Company’s Steamboat resort in Colorado experienced growth in skier visits of 8% in fiscal 2006, to put the resort over one million skier visits yet again. Both resorts reported excellent levels of natural snowfall throughout the season.

While the Company’s eastern resorts were challenged by weather for a considerable portion of the season, the snowmaking and grooming infrastructure of the eastern resorts provided some of the very best snow conditions in the East. Other highlights of the season include a year-to-date increase in revenues of more than 8% in the Company’s skier development (ski and snowboard school) programs.

“I am extremely pleased with our results from many areas of the business in this past winter season,” commented Chief Financial Officer Betsy Wallace. “From the large increases in skier visits in the West to the responsiveness and dedication of our staff in the East in the midst of challenging conditions, our resort operations performed extremely well. The successful sale of nearly all remaining fractional inventory of our real estate subsidiary, Grand Summit, allows the Company to look ahead towards exciting new opportunities in real estate. There are a number of projects being considered that should result in new exciting benefits to our guests and the Company,” added Wallace.

Fiscal 2006 Third Quarter Results

On a GAAP basis, net income attributable to common shareholders for the third quarter of fiscal 2006 was $10.7 million, or $0.34 per basic and diluted common share, compared with net income attributable to common shareholders of $9.3 million, or $0.29 per basic and diluted common share for the third quarter of fiscal 2005. Total consolidated revenue was $157.0 million for the third quarter of fiscal 2006, compared with $135.2 million for the third quarter of fiscal 2005. Revenue from resort operations was $132.8 million for the third quarter of fiscal 2006 compared with $132.3 million for the third quarter of fiscal 2005. The increase in resort revenues reflects the higher business volumes at the Company’s western resorts, partially offset by relatively lower business volumes at the Company’s eastern resorts in fiscal 2006 relative to the prior fiscal year. Revenue from real estate operations was $24.2 million for the quarter versus $2.9 million for the comparable period in fiscal 2005. The increase was primarily a result of the successful sale of nearly all remaining fractional inventory relating to the Steamboat Grand Hotel, which generated approximately $21.0 million in revenues for the third quarter of fiscal 2006.

Income from resort operations was $24.0 million for the third fiscal quarter of 2006 compared to income of $24.5 million for the third quarter of fiscal 2005. The decrease in income was associated with a $2.7 million increase in interest expense, partially offset by a $0.6 million increase in resort revenues, a $0.3 million decrease in cost of operations, a $0.4 million decrease in marketing, general and administrative expenses, a $0.3 million decrease in depreciation expense and a $0.6 million increase in the fair value of the interest rate swap agreement.

Income from real estate operations was $5.4 million for the third fiscal quarter of 2006 compared with a loss of $0.6 million for the comparable quarter in fiscal 2005. The increase in income was associated with a $21.3 million increase in revenues, a $0.1 million decrease in depreciation and amortization expense and a $1.0 million decrease in interest expense due to the reduced balance of the outstanding construction loans and to a $0.5 million year-to-date correction in the amount of deferred interest attributable to the Subordinated Construction Loan; partially offset by a $16.4 million increase in cost of real estate operations due primarily to a $15.5 million increase in cost of sales related to the sale of the remaining fractional inventory at the Steamboat Grand Hotel.

Fiscal 2006 to Date Results

On a GAAP basis, net loss attributable to common shareholders for the 39 weeks ended April 30, 2006 was $24.1 million, or $0.76 per basic and diluted common share, compared with a net loss attributable to common shareholders of $36.0 million, or $1.14 per basic and diluted common share for the 40 weeks ended May 1, 2005. Total consolidated revenue was $289.6 million for the 39 weeks ended April 30, 2006, compared with $260.8 million for the 40 weeks ended May 1, 2005. Revenue from resort operations was $259.9 million for the 39 weeks ended April 30, 2006 compared with $253.5 million for the 40 weeks ended May 1, 2005. The increase in resort revenues reflects the higher business volumes in December of fiscal 2006 relative to the prior fiscal year, as well as an increase in business volumes at the Company’s western resorts offset by lower business volumes at the Company’s eastern resorts in the third quarter of fiscal 2006 compared to the prior fiscal year period. Revenue from real estate operations was $29.8 million for 39 weeks ended April 30, 2006 versus $7.3 million for the 40 weeks ended May 1, 2005.

Excluding other items (for a reconciliation of other items, please see the tables following this discussion), the net loss was $22.7 million for the 39 weeks ended April 30, 2006, compared to a net loss of $30.0 million for the 40 weeks ended May 1, 2005.

The loss from resort operations was $26.4 million for the 39 weeks ended April 30, 2006 compared to a loss of $34.1 million for the 40 weeks ended May 1, 2005. The decreased loss was associated with a $6.4 million increase in resort revenues, a $0.6 million decrease in depreciation expense, a $0.2 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 $1.7 million increase in the fair value of the interest rate swap agreement; partially offset by a $2.0 million increase in marketing, general and administrative expense and a $5.2 million increase in interest expense. Resort operations costs were nearly unchanged compared to the prior year, despite the fact that the fiscal 2006 period contained one less weekly operating period relative to fiscal 2005. 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 $26.5 million for the 39 weeks ended April 30, 2006, compared to a loss of $28.1 million for the 40 weeks ended May 1, 2005.

Income from real estate operations was $2.2 million for the 39 weeks ended April 30, 2006 compared with a loss of $2.0 million for the 40 weeks ended May 1, 2005. The increase in income was associated with a $22.4 million increase in revenues, a $0.5 million decrease in depreciation and amortization expense and a $1.3 million decrease in interest costs due to lower construction loan balances relative to the prior fiscal year; partially offset by an $18.5 million increase in cost of operations, due to a $17.7 million increase in cost of sales related to increased sales of fractional share units at the Steamboat Grand Hotel, 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. Excluding other items, income from real estate operations was $3.8 million for the 39 weeks ended April 30, 2006, compared to a loss of $2.0 million for the 40 weeks ended May 1, 2005.

For the 39 weeks ended April 30, 2006 total skier visits at ASC’s resorts decreased by approximately 7% compared to the 40 weeks ended May 1, 2005, reflecting weather difficulties in the East, partially offset by year over year increases in business volumes in the Christmas/New Years holiday period and considerable increases in skier visits at the Company’s western resorts. Total skier visits at the Company’s western resorts increased by 10% compared to the 40 weeks ended May 1, 2005, reflecting generally positive operating conditions throughout the winter operating season to date.

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. The scanning methodology used to estimate skier visitation the Company’s western resorts is unchanged compared to the prior fiscal year.

Recent Trends

The Company reported early results for the fourth fiscal quarter, reflecting a 1% increase in revenues for the first five weeks of its fiscal 2006 fourth quarter over the first five weeks of its fiscal 2005 fourth quarter. Company-wide hotel bookings for the remainder of the fourth quarter are 10% ahead of pace compared to the same period in the prior fiscal year.

Use of Non-GAAP Financial Information

The company uses both GAAP and non-GAAP metrics to measure its financial results. Management believes that non-GAAP financial measures which exclude certain items provide useful information to investors regarding the company’s ongoing financial condition and results of operations. In particular, the company has excluded gain on sale of property, impairment loss on property sold and write-off of deferred financing costs and loss on extinguishment of Senior Subordinated Notes from net income or loss, income or loss from resort operations and income or loss from real estate operations, where applicable. Management believes these non-GAAP metrics are useful to investors because they remove certain items that occur in the affected periods and provide a basis for measuring the company’s results of operations and financial condition against other periods. Since the company has historically reported non-GAAP results to the investment community, management also believes the inclusion of non-GAAP measures provides consistency in its financial reporting. However, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition to the information contained in this press release, investors should also review information contained in the company’s Form 10-Q and Form 10-K, dated June 14, 2006 and October 31, 2005, respectively, as well as other filings with the Securities and Exchange Commission when assessing the company’s financial condition and results of operations. The company has provided reconciliations from GAAP financial measures to non-GAAP financial measures in the tables following this discussion.

About American Skiing Company

Headquartered in Park City, Utah, American Skiing Company is one of the largest operators of alpine ski, snowboard and golf resorts in the United States. Its resorts include Killington, Pico and Mount Snow in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash in New Hampshire; Steamboat in Colorado; and The Canyons in Utah. More information is available on the Company’s web site, www.peaks.com.