Killington, VT (Friday, May 14, 2004) - The owners of Killington Resort today and a Texas-based land developer, SP Land Company, LLC, both announced a land transaction involving seven large parcels that serves as a critical step in the development of the resort's slope-side real estate and base area village.

SP Land Company, LLC has secured a 75% interest in 213 acres in the Killington base area and a controlling 50% interest in another 256 acres at the resort's Bear Mountain base area. In return, SP Land Co. has taken over Killington parent American Skiing Company's (ASC's) debt to Fleet Bank. ASC was in default on loans of $78 million to that bank, at interest rates of up to 29 percent, according to the company's most recent financial report.

Killington and ASC have been working with Ski Partners, LLC, an affiliate of the Eiger Fund I, LP, since 2002. Although Ski Partners is the manager and majority owner of SP Land Company, Killington, Ltd. will continue to hold a substantial financial stake in the company.

"Completing this transaction allows for further design and planning associated with the Killington Village," said Allen Wilson, president of Killington Resort. "We believe that the new company has the real estate expertise and financial resources necessary to take the Village from a planning stage to fruition."

The efforts to develop, create joint ventures, and market the properties are being led by Steve Selbo, president of SP Land Company, who has been working at Killington on the project since February 2002.

"We are very excited about the potential for quality development at Killington - the location, community, mountain, and resort facilities provide all the ingredients necessary to create an unsurpassed slope-side development," said Selbo. "Our goal is to provide our residents and guests with a great resort experience at Killington. We intend to work closely with the Town of Killington to develop the properties in a way that complements and enhances the community."

Representatives of SP Land Company have already met informally with some Killington town leaders. Now that the financial deal has closed, the company plans to gather feedback from officials on developing the newly acquired interest in the land. As part of those meetings, SP Land Company will seek input on the two Planned Unit Developments permits - existing agreements that govern land use for the property and, working closely with Killington, Ltd., will submit extension requests for both permits before mid-June.

"This deal makes a lot of sense for Killington and for the surrounding communities," noted Wilson. "SP Land Company can provide the resources that will make it possible for the Town of Killington to realize the benefits of the master development plan it approved more than four years ago, and for the Killington ski resort to enjoy the type of quality development needed to improve the total resort experience."

Selbo, however, states that while they will start with the master plan originally designed by Killington, they may make changes. By town regulation, development in Killington base area requires the construction of 50 square feet of retail space for every residential unit built. These rules do not apply for development at the base of Bear Mountain.

The transaction also represents the final element of the restructuring plan announced by American Skiing Company Resort Properties, Inc., the company's real estate development subsidiary. The deal finalizes the restructuring of its $73 million Real Estate Term Facility led by Fleet National Bank and eliminated approximately $58.5 million in real estate debt from the consolidated balance sheet. This deal marks the first time that ASC has not been in default on any loans in six years. The reason for the discrepancy in the numbers is that the transfer of the Fleet loans to SP Land Company also involves the transfer of land held for collateral at some of ASC's western resorts back to ASC.

"The elimination of these defaults is critically important to the company and allows us to continue to strengthen our relationship with our lenders and capital partners," said Betsy Wallace, chief financial officer of ASC. "All of the debt of American Skiing Company and its subsidiaries, including our real estate subsidiaries, is in compliance with all applicable financial covenants. We are now solely focused on creating opportunities for the future."