THREE NEW TRAILS, LODGE RENOVATIONS AND ONE MAJOR TRAIL RE-GRADE HIGHLIGHT HEAVENLY’S 2008-2009 RESORT IMPROVEMENTS

Ski Ways Trails and the Re-Grade of Skyline Trail Continue Progress Under
Heavenly’s 10-Year Master Plan

South Lake Tahoe, Calif./Nev. – October 1, 2008 – Three new trails, on-mountain lodge renovations, radio frequency ticket technology and a major trail re-grade headline resort improvements Heavenly Mountain Resort (www.skiheavenly.com) announced today for the 2008-09 season. Under Heavenly’s 10-year master plan approved in April 2007, guests can look forward to new lifts, new on-mountain restaurants, new lodging and base villages that will greatly improve the overall experience at Lake Tahoe’s leading destination resort.

“The debut of Olympic Express and the Heavenly Flyer ZipRider last season set Heavenly apart as the next great destination resort,” said Blaise Carrig, Heavenly’s chief operating officer. “This winter guests will expect more improvements including new gladed trails in Ski Ways and the re-grading of Skyline Trail, which is the biggest little project at Heavenly in terms of its positive impact on the guest experience.”

The Skyline Trail re-grade is a great example of Heavenly addressing the concerns of its guests. Skyline Trail is the picturesque 10,000 foot high traverse connecting the California side of the mountain to the Nevada side. With its new, gentle 10-percent downhill grade, all levels of skiers and snowboarders will be able to enjoy unparalleled views of majestic Lake Tahoe as they slide their way into Nevada.

Three new trails will debut in California this season; two in Ski Ways glades and another in Powderbowl Woods. The runs continue the trend Heavenly began in the Olympic Express area last season; Heavenly is glading the trails, leaving tree islands far enough apart to groom the run with a snow cat and will serve upper-intermediate to advanced skiers and snowboarders, giving them a groomed, tree-skiing experience. The two trails in Ski Ways Glades will be designated as black diamonds (most difficult), and the trail in Powderbowl Woods will be designated as a blue square (intermediate/more difficult).

On the Nevada side, Heavenly is providing more on-mountain, indoor seating by adding 160 seats to East Peak Lodge. The new area gives guests more room to relax and recharge when they are not out enjoying the mountain. The Higher Grounds coffee bar originally located on the East Peak deck will move inside East Peak lodge this winter, and an additional Higher Grounds location will debut this winter at Lakeview Lodge. All on-mountain coffee locations will offer an organic, free-trade coffee blend from Starbucks called Serena.

Heavenly has continued its commitment to offering Lake Tahoe’s finest corduroy by adding five new low-emission Prinoth Bison groomers and one new low-emission Prinoth Bison winch cat. With these additions to the fleet, Heavenly maintains its claim to the largest fleet of Prinoth groomers in North America.

Heavenly is expanding snowmaking to include Stagecoach Run from top to bottom. Over eight acres of terrain will be covered, enhancing early- and late-season skiing coverage of popular intermediate-to-advanced terrain. Heavenly has also purchased 11 Snow Machines, Inc. fully-automated snowmaking fan guns. These machines will be placed on elevated towers in strategically-selected locations to provide a more consistent, quality snow coverage. Additionally, Heavenly has retrofitted many of its air/water snowmaking guns to be more energy efficient while also making larger quantities of higher quality snow. The combination of grooming expertise and snowmaking capacity ensure that Heavenly’s guests are always skiing or riding on the finest snow surface conditions Lake Tahoe has to offer.

The California Lodge rental shop is undergoing a remodel and expansion, creating a more efficient rental process so more time can be spent on the slopes. Also new this year is an
unlimited yearly ski and snowboard rental program through Rentskis.com and Specialty Sports Venture that rewards frequent renters and diminishes the need to bring gear to the resort, eliminating airline baggage costs. For $359 skiers and riders can purchase an unlimited number of days of Sport or Performance rental equipment (skis/boards, boots and poles if desired) for the 2008-09 season; the Unlimited Demo Rental Pass is available for $459 and the Junior Rental Pass for children 13 and under is $199. Rental equipment can be picked up at any Heavenly Sports location and rental passes can be purchased on-line in conjunction with Heavenly season passes at www.heavenlypass.com. Gear can be reserved online at Rentskis.com and can be kept for seven-day durations.

The 2008-09 Heavenly season passes have received a high-tech upgrade this season with the addition of Radio Frequency (RF) technology. A small computer chip called an RF “tag” will be embedded into all resort passes sending a radio signal to new handheld scanners. Guests will still interact with lift employees who will verify pass photos and information; however, the “easy scan” pass will not have to be presented to the scanner for it is detectable through many layers of clothing.

The Ski and Ride Schools of Heavenly will introduce a variety of new lesson options for the 2008-09 winter season. Mini South Shore Soldier Camps – based on the world-famous South Shore Soldiers Snowboard and Freeskiing Camps – will be offered monthly throughout the winter, focusing on progressive park riding and safety. These mini-camps will be taught by South Shore Soldiers-approved instructors and will be designed for varying levels of skiers and riders. Gunbarrel 25 Mogul Camps will be offered to improve mogul skiing and style and to prepare competitors for this year’s Gunbarrel 25 event to be held on April 5, 2009. Also, the Women’s Clinics will be revamped to attract women who are interested in top-level ski and snowboard instruction in the company of other women. For more information on any of these programs, visit http://www.skiheavenly.com/schools_clinics/adults/. The ski school will debut a new magic carpet in the California learning area making learning to ski and snowboard that much easier. It will also provide first and second-time learners more frequency with less fatigue.

In Food & Beverage, Heavenly will expand the Appetite for Life healthy food initiative this season by eliminating trans fats in the cooking oils at all its on-mountain dining establishments. Appetite for Life debuted last season offering Coleman hormone-free beef and poultry, as well as Horizon dairy products at all on-mountain eateries.