PARK CITY, Utah ??” American Skiing Company (OTC Bulletin Board: AESK) today announced its financial results for the third quarter of fiscal 2005. Highlights include an increase in resort revenues of approximately $16 million (7%) and an increase in skier visitation for the 40 weeks ended May 1, 2005 as compared to the comparable prior fiscal year period. The improved results were due to an increase in season pass visitation as a result of the successful introduction of the All For One pass at the company’s resorts in the East, increased revenue per skier visit, an increase in group and conference related business and an additional week of operations in the 40 weeks ended May 1, 2005 compared to the comparable prior fiscal year period (the 39 weeks ended April 25, 2004).

“We were very pleased with the success of our All For One pass in generating incremental skier visits and introducing new skiers to our resorts. The financial boost of the All For One pass coupled with higher guest spending resulted in strong resort revenue increases compared to the comparable prior period,” said Chief Financial Officer Betsy Wallace. “Our operational changes over the last year have definitely resulted in not only improved guest service scores but also improved financial results,” added Wallace.

“The Canyons experienced yet another record season, and Mount Snow and Sugarloaf both posted excellent growth in visits this year,” continued Wallace. “Off the slopes, our group and conference business continues to grow as leisure and corporate groups seek the hospitality and amenities of our resort facilities.”

In addition to the financial results through May 1, 2005, management of the company reported strong early results for the fourth fiscal quarter, reflecting a 2.4% increase in revenues for the first four weeks of its fiscal 2005 fourth quarter over the first four weeks of its fiscal 2004 fourth quarter along with approximately a 15% increase in year over year hotel booking pace for such period.

Fiscal 2005 Third Quarter Results

Revenue from resort operations was $132.3 million for the 13 weeks ended May 1, 2005 compared to $128.1 million for the 13 weeks ended April 25, 2004. Income from resort operations was $24.5 million for the 13 weeks ended May 1, 2005 versus income from resort operations of $24.3 million for the 13 weeks ended April 25, 2004. The increased income reflects increased resort revenues mentioned above, a $0.1 million decrease in the cost of resort operations due to the conversion of operating leases to capital leases offset by a $1.9 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $1.7 million increase in interest expense due to compound interest associated with the junior subordinated notes and the accretion of discount and dividends on mandatorily redeemable preferred stock and a $0.5 million increase in marketing, general and administrative costs.

Revenue from real estate operations was $2.9 million for the 13 weeks ended May 1, 2005 versus $17.6 million for the 13 weeks ended April 25, 2004, when the company recorded revenue from the auction relating to fractional share inventory at the Grand Summit Resort Hotel at The Canyons. The loss from real estate operations was $0.7 million for the 13 weeks ended May 1, 2005, compared to income of $0.2 million for the 13 weeks ended April 25, 2004. The loss reflects the lower revenues as mentioned above, offset by a $9.2 million decrease in the cost of real estate operations and a $4.5 million decrease in interest expense during fiscal 2005 as result of the restructuring of the real estate credit facility in May 2004.

Total consolidated revenue was $135.2 million for the 13 weeks ended May 1, 2005, compared with $145.7 million for the 13 weeks ended April 25, 2004. Net income for the 13 weeks ended May 1, 2005 was $23.8 million, or $0.29 per basic and diluted common share, compared to net income of $24.5 million, or $0.32 per basic and diluted common share for the 13 weeks ended April 25, 2004.

Fiscal 2005 to Date Results

The company’s fiscal year is a 52-week or 53-week period ending on the last Sunday of July. Fiscal 2005 is a 53-week reporting period and fiscal 2004 was a 52-week reporting period, with each quarter consisting of 13 weeks, with the exception of the second quarter of fiscal 2005, which consisted of 14 weeks. Accordingly, the year-to-date period for the third quarter of fiscal year 2005 is comprised of 40 weeks whereas the year-to-date period for the third quarter of fiscal year 2004 was comprised of 39 weeks.

Skier visits company-wide for fiscal 2005 increased approximately 3% over skier visits from fiscal 2004. The increase was largely due to the increased season pass visits associated with the All For One pass products in fiscal 2005 compared to fiscal 2004. Revenue from resort operations was $253.5 million for the 40 weeks ended May 1, 2005 compared to $237.1 million for the 39 weeks ended April 25, 2004. The increase in resort revenue reflects an additional week of operations in the second quarter of fiscal 2005 compared to the second quarter of fiscal 2004, and strong fiscal 2005 first quarter group and conference business at Steamboat and The Canyons as well as price increases at the company’s resorts. The loss from resort operations was $34.1 million for the 40 weeks ended May 1, 2005 versus a loss of $29.3 million for the 39 weeks ended April 25, 2004. The increased loss reflects $6.0 million in deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, a $6.4 million increase in the cost of resort operations due to price increases in fuel and power and an increase in repairs and maintenance expense, a $5.7 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $6.6 million increase in interest expense due to compound interest associated with the junior subordinated notes and the accretion of discount and dividends on mandatorily redeemable preferred stock and an additional week of outstanding borrowings, offset by the increased revenues mentioned above, a $3.2 million decrease in marketing, general and administrative costs and a reduction of $4.1 million in operating lease costs as a result of the conversion to capital leases. Excluding the deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, the loss from resort operations was $28.1 million for the 40 weeks ended May 1, 2005 compared to a loss of $29.3 million for the 39 weeks ended April 25, 2004.

Revenue from real estate operations was $7.3 million for the 40 weeks ended May 1, 2005 versus $30.0 million for the 39 weeks ended April 25, 2004, including the previously mentioned auction at The Canyons as well as land parcel sales recorded in the second quarter of fiscal 2004. The loss from real estate operations was $2.0 million for the 40 weeks ended May 1, 2005 compared with a loss of $9.2 million for the 39 weeks ended April 25, 2004. The decrease in the loss reflects a reduction in interest expense of $13.6 million from the previously mentioned credit facility restructuring and significant decreases in revenue and associated operating costs mentioned above.

Total consolidated revenue was $260.8 million for the 40 weeks ended May 1, 2005, compared with $267.1 million for the 39 weeks ended April 25, 2004. Net loss for the 40 weeks ended May 1, 2005 was $36.0 million, or $1.14 per basic and diluted common share, compared with a net loss of $38.4 million, or $1.21 per basic and diluted common share for the 39 weeks ended April 25, 2004.