Vail Resorts Closes its Aquisition of Heavenly Ski Resort

Vail Resorts, Inc. (NYSE: MTN) announced that it has closed on its acquisition of Heavenly Ski Resort in the Lake Tahoe area of California and Nevada. The acquisition of Heavenly, in addition to bringing greater diversification to its winter resort business, enables Vail Resorts to further advance its reputation as the leading mountain resort operator in the United States. The transaction closed for consideration of $102 million (including $2.7 million of assumed debt), less a cash adjustment of $2.8 million resulting in net consideration of $99.2 million. The cash adjustment is intended to offset the losses incurred by Heavenly during the period from closing until the end of Vail Resorts’ fiscal year on July 31, 2002. The actual loss expected to be incurred during that period is approximately $3 million.

Vail Resorts, Inc. is the leading mountain resort operator in the United States. The Company operates the Colorado mountain resorts of Vail, Beaver Creek, Breckenridge and Keystone, and the Grand Teton Lodge Company in Jackson Hole, Wyo. The Company also holds a majority interest in Rockresorts, a luxury resort hotel company with 11 distinctive properties across the United States. Vail Resorts Development Company is the real estate planning, development, construction, retail leasing and management subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com.


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