Intrawest Posts Strong Quarter

Total Company EBITDA increases 43%


o $93-million positive swing in cash flow from continuing operating activities

o Significant growth in management services business in line with corporate strategy

Vancouver, February 10, 2004 – Intrawest Corporation, the world’s leading operator anddeveloper of village-centered resorts, announced today its results for the fiscal 2004 secondquarter ended December 31, 2003. Total revenue for the quarter was $398.1 million comparedwith $212.7 million for the same period last year.

Total Company EBITDA (earnings beforeinterest, income taxes, non-controlling interest, depreciation and amortization) was $52.0 millioncompared with $36.4 million in the same period last year. Income from continuing operations,before the after-tax cost of expensing the call premium and unamortized costs on bonds redeemedin the quarter, was $10.6 million or $0.22 per share compared with $3.4 million or $0.07 pershare in the same period last year. After expensing the call premium and unamortized costs onbonds redeemed in the quarter, income from continuing operations was $0.2 million or $0.01 pershare.

Cash flow from continuing operating activities was $84.7 million in the quarter compared withnegative cash flow of $8.2 million in the same period last year. This positive swing in cash of$92.9 million was mainly due to higher real estate closings and lower capital requirements as aresult of the Leisura partnerships. For the six months ended December 31, 2003, cash flow fromcontinuing operations was $102.6 million compared with negative cash flow of $123.1 million forthe same period in the previous year, or a $225.7-million positive swing.

“The significant cash flow generated in the quarter presents clear evidence that the company’sstrategy of moving towards a less capital-intensive model is succeeding,” said Joe Houssian,Intrawest’s chairman, president and chief executive officer.

The format of the statement of operations was changed at the beginning of the fiscal year toreflect the company’s move to a more expertise-based business model and the growth inmanagement services income. Revenue and expenses are now broken out into three primarysources: resort operations, management services and real estate development. Managementservices mainly comprise lodging and property management fees, golf course management fees,RezRez reservations and licensing fees, and real estate development and sales services fees.Resort operations revenue increased to $111.3 million from $98.6 million. This increase was duemainly to the inclusion of a full three months of revenue from Winter Park, which Intrawest tookcontrol of on December 24, 2002, and to the favorable impact on reported revenue of a strongerCanadian dollar. These two factors were also largely responsible for the increase in resortoperations expenses. The reduction in resort operations profit contribution to $21.4 million from$22.2 million was primarily due to the slow start to the season in the East compared with a verystrong start to the prior season.

Management services revenue and profit contribution increased to $24.4 million and $3.5 million,respectively, from $14.7 million and $0.6 million primarily as a result of the inclusion ofmanagement fees from Leisura, higher lodging management fees from increased occupied roomnights, and the improved results of RezRez.Revenue from real estate development increased to $262.5 million (including $92.8 million fromprojects sold to Leisura) from $99.4 million in the same period last year. Real estate developmentexpenses of $244.1 million in the second quarter include $92.8 million in connection withprojects transferred to Leisura, comprising the cost of these projects and the land profit, whichunder Canadian generally accepted accounting principles (GAAP) is deferred until the unitscomplete construction and close. Excluding the sale of projects to Leisura, 341 units were cllosedin the quarter compared with 243 last year. The profit contribution from real estate developmentincreased to $18.4 million from $11.8 million last year.

Closed real estate units and pre-sold units scheduled to close in fiscal 2004, including the $92.8million of revenue for projects sold to Leisura, now amount to approximately $603 million.

Revenue and Total Company EBITDA for the six months ended December 31, 2003 were$621.4 million and $77.4 million compared with $326.9 million and $43.0 million, respectively,for the same period last year. Income from continuing operations for the six months, beforeexpensing the after-tax cost of the call premium and unamortized costs on bonds redeemed in theperiod, was $11.6 million or $0.24 per share compared with a loss from continuing operations of$7.6 million or $0.16 per share for the same period last year. After expensing the call premiumand unamortized costs on bonds redeemed, income from continuing operations for the six monthswas $1.2 million or $0.02 per share.

The term EBITDA does not have a standardized meaning prescribed by GAAP and may not becomparable to similarly titled measures presented by other publicly traded companies. Areconciliation between net earnings as determined in accordance with Canadian GAAP andEBITDA is presented in the Statistical Supplement included below.