Vail Resorts Announces Start of the New Peaks of Breckenridge

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March 20, 2006

Breckenridge, CO - (News Release) - Vail Resorts, Inc. (NYSE:MTN) today announced that its wholly-owned real estate subsidiary, Vail Resorts Development Company ("VRDC"), will begin development of The Peaks of Breckenridge, a master-planned ski-in/ski-out community. The Peaks of Breckenridge will consist of the new Peak 7 Village and the redeveloped Peak 8 Village, and will feature approximately 450 residential units and 75,000 square feet of skier services. Both neighborhoods also will have access to Peaks 7 and 8 from historic Main Street via the proposed Breckenridge gondola. Construction on the new gondola is planned to start this spring and be completed by Christmas 2006. Subject to approval, The Peaks of Breckenridge will include residences, skier services, lodging, a spa, dining, activities and more.

We have invested several years envisioning The Peaks of Breckenridge, said Alex Iskenderian, vice-president of development for VRDC. Peak 7 Village marks the first step in making the vision a reality and represents yet another large step forward for both the resort and the Town of Breckenridge. It is truly a great ski-inski-out real estate opportunity.

VRDC's Peak 7 Village development will consist of approximately 158 residences located at the base of Peak 7. It will include 44 whole ownership condominiums developed by VRDC and a 114-unit fractional ownership facility developed by Grand Timber Development Company ("GTDC"), a Breckenridge based developer of fractional ownership resorts. Vail Resorts is selling a parcel of land within Peak 7 village to GTDC, the developer of the successful Grand Timber Lodge in Breckenridge, for approximately $9.5 million. The land sale is scheduled to close mid-December 2006, subject to customary closing conditions. GTDC's 114-unit luxury fractional ownership resort at Peak 7 Village will include a full service spa, swimming pool, hot tubs and other guest amenities.

The opportunity to partner with VRDC and bring Breckenridge an upscale fractional ownership resort at the base of Peak 7 is extremely exciting for our company, commented Mike Millisor, president of GTDC. We believe our 20 year history track record in Breckenridge will help make Peak 7 Village a tremendous success for the entire community.

VRDC will develop 44 luxury residences at Peak 7 Village. The ski-inski-out residences will be wholly-owned condominiums of one, two, three or four bedrooms and will offer an array of guest amenities and skier services. As part of the project, the Peak 7 Independence SuperChair will be relocated to within steps of the new base area.

Work on the overall project began this week with the start of road and utility construction. VRDC anticipates taking the condominiums to market in late 2006. GTDC plans on commencing sales in late 2007.