PARK CITY, Utah ??” American Skiing Company (OTC: AESK) today announced its financial results for the second quarter of fiscal 2005. Highlights of the ski season to date include an increase in group and conference business and increases 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, which allows guests to ski throughout the ski season for as little as $349.

“We entered this season poised to capture additional skier visits on the strength of our new creative marketing efforts, and I am pleased to report that our innovative All For One pass products have done just that,” said CEO B.J. Fair. “With the introduction of the All For One pass this year, we have contributed to the financial health of the company, while making skiing and riding at our network of resorts accessible to many more than in past years. The success of the All For One program and the increased exposure to the ASC experience should benefit us for the remainder of the current season and in the years ahead.”

“While we did experience poor early season weather conditions in the East, excellent skiing and riding conditions now prevail at all of our resorts,” Fair continued. “We are reaping the benefits of superb recent natural snowfall in the Northeast, followed by favorable weather conditions at all resorts. As a result, we remain cautiously optimistic about the remainder of this year’s ski season.”

In addition to the financial results through January 30, 2005 the company also reported a 10.6% increase in revenues for the first four weeks of its fiscal 2005 third quarter over the first four weeks of its fiscal 2004 third quarter along with approximately a 4% increase in year over year hotel booking pace. Strong visitation through the February holiday period was cited as a driver of increased ticket product and resort amenity revenues.

Fiscal 2005 Second Quarter Results

Total consolidated revenue was $106.1 million for the 14 weeks ended January 30, 2005, compared with $103.0 million for the 13 weeks ended January 25, 2004. Revenue from resort operations was $103.4 million for the 14 weeks ended January 30, 2005 compared to $92.9 million for the 13 weeks ended January 25, 2004. As the result of the company being on a 52-53 week fiscal year, fiscal 2005 includes an extra week of operations compared to fiscal 2004. This resulted in an additional week of operations in the second quarter of fiscal 2005 compared to the second quarter of fiscal 2004. Revenue associated with the additional week was approximately $11.6 million. Without the extra week in fiscal 2005, skier visits were down approximately 3% as compared to fiscal 2004 due to lower amounts of natural snowfall and warmer temperatures in the East, and wind events from the beginning of the ski season through the end of the Christmas holiday period. Revenue from real estate operations was $2.7 million for the 14 weeks ended January 30, 2005 versus $10.1 million for the 13 weeks ended January 25, 2004, when the company recognized $8.9 million from land parcel sales.

On a GAAP basis, the net loss for the 14 weeks ended January 30, 2005 was $22.1 million, or $0.70 per basic and diluted common share, compared to a net loss of $21.7 million, or $0.68 per basic and diluted common share for the 13 weeks ended January 25, 2004. The loss from resort operations was $21.4 million for the 14 weeks ended January 30, 2005 versus a loss of $17.7 million for the 13 weeks ended January 25, 2004. The increased loss was associated with a $6.0 million deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes relating to the refinancing of Senior Debt, Subordinated Notes and Preferred Stock this past November 2004, a $3.8 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $3.4 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, a $4.3 million decrease in marketing, general and administrative costs, $2.0 million in reduced operating lease costs as a result of the conversion to capital leases and the results of the extra week of operations discussed above. Excluding the deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, the loss from resort operations was $15.4 million for the 14 weeks ended January 30, 2005 compared to a loss of $17.7 million in the 13 weeks ended January 25, 2004. The company has provided reconciliations from GAAP financial measures to non-GAAP financial measures in the tables following this discussion.

The loss from real estate operations was $0.7 million for the 14 weeks ended January 30, 2005, compared with a loss of $4.0 million for the 13 weeks ended January 25, 2004. The decrease in the loss was largely due to the reduced interest expense during fiscal 2005 as result of the restructuring of the real estate credit facility in May 2004.

Fiscal 2005 to Date Results

Skier visits company-wide for the 27 weeks ended January 30, 2005 increased 9.5% over skier visits for the 26 weeks ended January 25, 2004. The increase was due to the extra week of operations in fiscal 2005 compared to fiscal 2004 to date, and the increased season pass visits associated with the All For One pass products. Total consolidated revenue was $125.6 million for the 27 weeks ended January 30, 2005, compared with $121.4 million for the 26 weeks ended January 25, 2004. Revenue from resort operations was $121.2 million for the 27 weeks ended January 30, 2005 compared to $109.0 million for the 26 weeks ended January 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, as discussed above, and strong fiscal 2005 first quarter group and conference business at Steamboat and The Canyons. Revenue from real estate operations was $4.4 million for the 27 weeks ended January 30, 2005 versus $12.4 million for the 26 weeks ended January 25, 2004, including the previously mentioned land parcel sales.

On a GAAP basis, net loss for the 27 weeks ended January 30, 2005 was $59.9 million, or $1.89 per basic and diluted common share, compared with a net loss of $62.9 million, or $1.98 per basic and diluted common share for the 26 weeks ended January 25, 2004. The loss from resort operations was $58.5 million for the 27 weeks ended January 30, 2005 versus a loss of $53.6 million for the 26 weeks ended January 25, 2004. The increased loss was associated with $6.0 million in deferred financing costs write-off and loss on extinguishment of Senior Subordinated Notes, a $3.8 million increase in depreciation and amortization due to asset additions (specifically, the conversion of operating leases to capital leases), a $4.8 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, a $3.7 million decrease in marketing, general and administrative costs and a reduction of $2.0 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 $52.6 million for the 27 weeks ended January 30, 2005 compared to a loss of $53.6 million for the 26 weeks ended January 25, 2004. The company has provided reconciliations from GAAP financial measures to non- GAAP financial measures in the tables following this discussion.

The loss from real estate operations was $1.3 million for the 27 weeks ended January 30, 2005 compared with a loss of $9.4 million for the 26 weeks ended January 25, 2004. The decrease in the loss was largely due to the reduced interest expense from the previously mentioned credit facility restructuring.