Booth Creek Reports Fiscal First Quarter

VAIL, Colo.–(BUSINESS WIRE)–March 17, 2003–Booth Creek Ski Holdings, Inc. (“Booth Creek” or the “Company”) announced today results for the fiscal quarter ended Jan. 31, 2003.

Resort operations revenues were $46,515,000 for the quarter ended Jan. 31, 2003, a reduction of $2,842,000, or 6 percent, from the level of revenues generated during the quarter ended Feb. 1, 2002. Total skier visits declined from 1,051,000 visits for the 2002 period to 913,000 visits for the 2003 period, or 13 percent, due to the following:

— Total skier visits for the Company’s Lake Tahoe resorts (Northstar and Sierra) declined by 18,000 visits, or 4 percent, from the 2002 period, primarily as a result of a delayed opening at Sierra due to the lack of early season snowfall in the Lake Tahoe region.

— During the first half of the 2002/03 ski season, the northeastern United States experienced much colder temperatures and increased natural snowfall as compared to the record warm winter of 2001/02. Total skier visits for the 2003 period for the Company’s New Hampshire resorts (Waterville Valley, Mt. Cranmore and Loon Mountain) were up 58,000 visits, or 21 percent, from the 2002 period.

— From the opening of the 2002/03 season through January 2003, the Pacific Northwest experienced unseasonably warm temperatures and substantially below average snowfall. The Summit commenced partial operations on Dec. 27, 2002 on limited terrain, as compared to a Nov. 30, 2001 opening for the 2001/02 season. Further, operating conditions at the Summit were generally favorable throughout the 2001/02 season. Total skier visits at the Summit for the quarter ended Jan. 31, 2003 were down 178,000 visits, or 54 percent, as compared to the quarter ended Feb. 1, 2002.

For the quarter ended Jan. 31, 2003, the Company realized an increase in revenue per skier visit of $3.99, or 8 percent, which partially offset the decline in skier visits. Additionally, total season pass sales for the 2002/03 season increased by approximately $4,000,000, or 28 percent, from the level of passes sold for the 2001/02 season.

Cost of sales and selling, general and administrative expense applicable to the resort segment totaled $32,617,000 for the quarter ended Jan. 31, 2003, a decrease of $235,000 from the 2002 period, due principally to reduced direct cost of sales for product sales and lower legal fees as a result of the resolution of certain legal matters involving Loon Mountain.

Resort operations contributed EBITDA (as defined below) of $13,898,000 for the quarter ended Jan. 31, 2003, compared with EBITDA of $16,505,000 for the 2002 period. Operating income for the resort segment for the 2003 period was $10,075,000 compared to operating income of $12,234,000 for the 2002 period.

Revenues from real estate operations for the three months ended Feb. 1, 2002 were $3,300,000, which was due to the close of escrow on seven lots within the Unit 7 development at Northstar. There were no real estate sales during the three months ended Jan. 31, 2003. The Company has commenced marketing activities for the 15 lot Unit 7A subdivision at Northstar, which is expected to be completed during the fourth quarter of fiscal 2003.

Cost of sales, depletion and selling, general and administrative expense for the real estate andother segment totaled $316,000 for the quarter ended Jan. 31, 2003, as compared to $862,000 forthe 2002 period. The results for the 2002 period included noncash cost of real estate sales (as defined below) of $665,000 as a result of the sale of seven lots within the Unit 7 development at Northstar.

Real estate and other operations incurred an EBITDA loss (as defined below) of $293,000 for the quarter ended Jan. 31, 2003, compared with EBITDA of $3,103,000 in the 2002 period. Operating loss for the real estate and other segment was $300,000 for the 2003 period, as compared to operating income of $2,438,000 in the 2002 period.

Interest expense was $3,371,000 for the quartter ended Jan. 31, 2003, as compared to $4,261,000 for the 2002 period, a reduction of $890,000, or 21 percent. The decline in interest expense for the 2003 period was primarily due to reduced borrowings and lower average interest rates. The Company’s total debt, including revolving credit facility borrowings, has declined from $130,815,000 at Feb. 1, 2002 to $116,030,000 at Jan. 31, 2003, a reduction of $14,785,000, or 11 percent.

The Company recognized a gain on the early retirement of debt of $506,000 for the three months ended Jan. 31, 2003, relating to the repurchase of $16,000,000 aggregate principal amount of its 12.5 percent senior notes due 2007 (the “Senior Notes”).

The Company’s income from continuing operations totaled $6,631,000 for the quarter ended Jan. 31, 2003, a reduction of $3,540,000 from the Company’s income from continuing operations in the corresponding period of 2002, as a result of the factors discussed above.

Total EBITDA (excluding the noncash cost of real estate sales) (as defined below) was $13,605,000 for the quarter ended Jan. 31, 2003, as compared to EBITDA of $19,608,000 for the 2002 period.

The Company realized income from discontinued operations of $1,538,000 during the quarter ended Feb. 1, 2002 relating to the former operations of Bear Mountain, Inc. (“Bear Mountain”), which was sold on Oct. 10, 2002.

The Company’s net income for the quarter ended Jan. 31, 2003 was $6,631,000, a reduction of $4,878,000 from the net income of $11,509,000 generated for the three months ended Feb. 1, 2002, primarily as a result of the real estate sales and income from discontinued operations of Bear Mountain reflected in the 2002 period and lower resort operations revenues in the 2003 period.

Since Jan. 31, 2003, the Company has experienced a decline in skier visitation relative to prior season levels, which may be attributable to a number of factors, including the continued lack of adequate snowfall and relatively poor conditions at the Summit during February 2003; extreme cold temperatures and the impact of disruptive major storms in the northeastern United States during February 2003; substantially below average snowfall in the Lake Tahoe region during January and February 2003; the weakening economy; rising gasoline prices, particularly in California; and concerns regarding the threat of war in the Middle East and the potential for heightened terrorist activity in the United States.

Booth Creek consists of six resorts across North America, including Northstar-at-Tahoe and Sierra-at-Tahoe in the Lake Tahoe region of Northern California; Waterville Valley, Mt. Cranmore Mountain Resort and Loon Mountain in New Hampshire; and the Summit at Snoqualmie near Seattle, Wash. Booth Creek is the fourth largest ski resort operator in the country (www.boothcreek.com).