Newry, ME (Tuesday, July 30, 2002) - American Skiing Company announced today the beginning of a business initiative to consolidate the operations of their Maine resorts, Sunday River and Sugarloaf/USA.

The first action will unite the senior management teams of Sunday River and Sugarloaf/USA under the leadership of John Diller. Diller was previously the managing director of Sugarloaf/USA.

"We foresee significant opportunity to increase Maine's share of the New England ski market and this integration will help achieve that goal," said B.J. Fair, CEO of American Skiing Company. "These mountains will maintain their separate, powerful brand identities, but under single leadership will enjoy the benefits of a more cohesive, integrated management structure. We have tremendous confidence in John's ability to lead these resorts and drive their future growth."

In addition to Diller, Fair said the integrated management team would include senior staff from both Sunday River and Sugarloaf. He added that each resort would retain its own dedicated operating team. Certainly, the initiative will also cut costs and expenses for the financially beleaguered parent corporation through the consolidation of operations. Word to First Tracks!! Online from an unidentified source inside the company is that several key members of the Sunday River staff were let go today.

Diller is a native of Skowhegan, Maine, and a 30-year veteran of the ski industry, having held senior positions in Skier Services and Operations before assuming the leadership position at Sugarloaf. Sunday River, ASC's flagship resort, is widely recognized as an industry powerhouse in Northeastern snowmaking and trail grooming.

"We have a unique opportunity," says Diller. "We have two great businesses -- two well-known brands -- that can pool resources to make Maine a bigger piece of the skiing pie in New England. This is truly a case of the rising tide lifting all boats."

Sunday River and Sugarloaf/USA attract nearly one million skier visits each year, which represents approximately fifteen percent of the ski volume in New England. According to Fair, the changes announced today will improve the performance of both resorts and enhance the overall customer experience of each property. Previously, each mountain maintained wholly separate business plans, marketing strategies and leadership teams -- costs that will clearly be shaved through consolidation.