Vail Resorts Reports 2Q2013FY Results; Announces Record Capitol Plan & Enhancements For 2013

Vail Resorts Reports FY2013 2nd Quarter Results, Unveiling Record Capitol Plans to Enhance Rider Experience at Several Resorts

PRESS RELEASE

BROOMFIELD, Colo.(March 6, 2013) – Vail Resorts, Inc. (NYSE: MTN) today announced today reported results for the second quarter of fiscal 2013 ended January 31, 2013, as well as the Company’s ski season-to-date metrics through March 3, 2013. Vail also announced its calendar 2013 capital expenditure plan. The Company’s 2013 capital plan includes a high-impact new lift, significant terrain expansion, a new restaurant and the fourth generation of EpicMix, as well as $25 million in spending for the first phase of its new summer operations and nearly $10 million in upgrades for each of the recently acquired Afton Alps and Mt. Brighton, resulting in the largest number of planned improvements in the Company’s history. The Company currently anticipates it will spend approximately $130 million to $140 million in resort capital expenditures in calendar year 2013, including approximately $47 million to $52 million in maintenance capital, which is necessary to maintain the appearance and level of service appropriate to resort operations, including routine replacement of snow grooming equipment and rental fleet equipment. All of the proposed capital projects are subject to applicable regulatory approvals, including U.S. Forest Service approval.

Robert Katz, Chief Executive Officer, commented, “We are very pleased with our performance in the second quarter of fiscal 2013, which was notable for two distinct dynamics we experienced in the quarter. The first was our results through the middle of December, which were marked by unusually warm and dry weather in Colorado that limited the terrain we could open, leading to lower than expected results for our four Colorado resorts. The second began with the Christmas and New Year’s holidays as weather conditions in Colorado returned to more normal patterns, leading to strong visitation and significant consumer spending in our ancillary businesses producing a record holiday season. Subsequent to the holidays, this momentum continued with solid results through the end of January. For the quarter, excluding the Acquisitions, lift revenue excluding season pass revenue was up 11.9% compared with the same period in the prior year and we saw continued growth in ancillary revenue, with dining revenue up 11.7%, retail/rental revenue up 10.7%, and ski school revenue up 9.5%. Additionally, excluding the Acquisitions, Mountain Reported EBITDA increased $16.6 million, or 13.7% compared to the three months ended January 31, 2012.

Our lodging results benefited from higher visitation in the peak holiday periods and higher demand for luxury rooms. Despite the slow start to the season for our Colorado properties, revenue at our owned hotels and managed condominiums increased 5.5%, contributing to a 43.4% increase in Lodging Reported EBITDA compared with the same period in the prior year.

We are continuing to see increasing levels of buyer interest and are encouraged by the rate of sales we are seeing at both of our development projects. During the quarter, we closed on four Ritz-Carlton Residences, Vail and three One Ski Hill Place units. Real Estate Reported EBITDA improved 26.0% for the second quarter of 2013, and Net Real Estate Cash Flow for the second quarter was $8.9 million and was $14.4 million year-to-date. Subsequent to the end of the quarter, we closed on two additional Ritz-Carlton Residence and five additional One Ski Hill Place units.

Our balance sheet remains in a very strong position. We ended the quarter with $136.6 million of cash on hand and no borrowings under the revolver component of our senior credit facility and our Net Debt was 1.7 times trailing twelve months Total Reported EBITDA.” Katz added, “I am also pleased to announce that that the Board of Directors has decided to increase our quarterly dividend by 10% and declared a quarterly cash dividend on Vail Resorts’ common stock of $0.2075 per share, payable on April 9, 2013 to stockholders of record on March 25, 2013. The decision to increase our dividend was due to the results we are seeing this season, the strength of our business model and balance sheet, and the confidence we have in our future growth prospects.”

With Vail Resorts’ recent acquisition of Afton Alps, Minnesota skiers and snowboarders can already look forward to next winter as the Company invests nearly $10 million in significant enhancements to the ski and ride experience and offers the greatest resort access and value in the snow sports industry on one season pass, the Epic Pass.

As part of Vail Resorts’ commitment to providing the experience of a lifetime to all of its guests, the Company plans to invest nearly $10 million in enhancements and upgrades to Afton Alps this summer to dramatically improve the guest experience next winter. Vail Resorts intends to significantly improve snowmaking to open the ski resort earlier, extend the season and provide a more consistent and high-quality snow surface; create state-of-the-art terrain parks with extensive new features and rope tows; energize and modernize the base area facilities; and add Vail Resorts’ signature EpicMix and EpicMix Racing technology to personalize the guest experience.

Vail Resorts also is bringing its popular season pass products, the Epic Pass and Epic Local Pass, to Minnesota skiers and riders and offering access to Afton Alps as well as eight iconic resorts in the West–Vail, Beaver Creek, Breckenridge, Keystone, and Arapahoe Basin in Colorado and Heavenly, Northstar and Kirkwood in Lake Tahoe. Even better, kids can ski and ride Afton Alps and these eight western resorts for $5 less than 2012-2013 Afton Alps Child Pass. Adults can ski or ride all nine resorts for $529, just $130 more than a current Afton Alps Pass. Purchasing next season’s pass now through April 14guarantees the lowest price and offers skiers and riders the option of making a $49 down payment now with the remainder due in the fall.

We’re thrilled that Afton Alps is now a part of our family of resorts. It’s a very special place steeped in snow sports tradition and we intend to honor that legacy by bringing additional enhancements to the ski area and creating more value for Minnesota skiers and riders in their season pass choices. Next winter, they’ll be able to ski as much as they want in their own backyard and at eight world-class resorts out West with the Epic Pass,” said Kirsten Lynch, executive vice president and chief marketing officer of Vail Resorts. “Vail Resorts’ season passes offer guests the flexibility to choose which pass is right for them based on how much and where they plan to ski and ride. We encourage all of our guests to purchase their passes this spring to take advantage of the lowest guaranteed price for next winter.”

The following guide can help Minnesota skiers and snowboarders choose the best season pass options for them, based on how much they plan to ski and ride locally and out West. All passes are available for purchase at www.epicpass.com

Continue to Page 2 for the highlights of the expenditure plan and seasonal passes

Highlights of the calendar year 2013 capital expenditure plan include

Epic Discovery

This first phase of Epic Discovery, the Company’s summer mountain activity plan, includes approximately $25 million to transform the summer experience at six of its mountain resorts (Vail, Beaver Creek, Breckenridge, Keystone, Heavenly and Northstar). Plans for each mountain, include a selection of zip lines, ropes courses, signature climbing walls, Forest Flyers summer tubing, expanded hiking and mountain biking trails and education centers. Each of these new activities will capitalize on the existing summer visitation at each resort and leverage existing infrastructure, creating the opportunity for high-impact and high-return projects. The Company expects these activities, in total, to generate approximately $7 million of incremental Mountain Reported EBITDA in their first full summer of operation.

Improvements at Afton Alps & Mt Brighton

The Company is planning major enhancements and upgrades to the newly acquired Afton Alps near Minneapolis, Minn., and Mt. Brighton near Detroit, Mich. The Company plans to invest nearly $10 million at each resort to bring a completely new ski experience to these markets, which are home to more than 450,000 skiers and riders. The Company’s plans include (i) dramatic improvements in snowmaking to extend the season and provide a more consistent and high quality snow surface, (ii) the creation of state-of-the-art terrain parks with extensive new features, animation and dedicated lifts; (iii) upgrades to base area facilities; (iv) the addition of EpicMix, EpicMix Racing and lift ticket scanning to personalize the guest experience and better promote the Company’s western resorts to these skiers; and (v) improvements to guest safety and quality across the ski areas. These improvements are being announced along with new season pass plans for the resorts and a more dedicated sales effort in those markets to drive a stronger connection between those guests and the Company’s Colorado and Tahoe resorts. The Company believes that following these plans, future capital spending at each resort will be more limited in scope.

Peak 6 terrain expansion at Breckenridge

The Peak 6 terrain expansion includes two new chairlifts and 543 acres of new terrain, a 23 percent expansion to the resorts skiable acreage. Peak 6 will offer an intermediate “bowl” skiing experience, with the opportunity for a wide variety of guests to ski this new high alpine area that sits above tree line. Peak 6 will become another iconic feature of Breckenridge, and will better disperse skiers and improve the guest experience across the resort, which is perennially the #1 or #2 most visited mountain resort in the United States.

New Red Tail Camp restaurant at Beaver Creek

In advance of the 2015 World Alpine Ski Championships, the Company is building a new 500 seat restaurant at Red Tail Camp, located at the finish of the men’s and women’s downhill courses, which more than doubles the existing restaurant’s capacity. Red Tail Camp will offer gourmet dining options in an upscale cafeteria setting and will add a second high quality and high capacity dining venue for Beaver Creek, better positioning the resort for continued growth in visitation. The new restaurant will follow on the success the Company has had with the Tamarack Lodge at Heavenly, the Zephyr Lodge at Northstar and The 10th at Vail.

Replacing Vail’s Chair 4 (Mountain Top Express) with a high speed, six-person chairlift

Vail’s Mountain Top Express (#4) is one of the most recognized and highly utilized chairlifts in North America- serving both a critical skiing pod for the mountain and an important transportation lift from Lionshead and Vail Village to the Back Bowls and Blue Sky Basin. The new six-person chairlift will increase capacity by 33 percent, dramatically reducing lift lines and building on this year’s success of the newly built Gondola One. The new chair will continue to build upon Vail’s preeminent position in delivering the best experience in the ski industry worldwide.

EpicMix Academy 

EpicMix Academy will be the fourth generation of the groundbreaking and award-winning EpicMix application, following the introductions of EpicMix Photo and EpicMix Racing. With EpicMix Academy, the Company’s ski school instructors will be able to certify the attainment of certain skills and ski levels for any of the students in their classes. Children and adults in both group and private ski lessons will be able to earn permanent recognition and review their accomplishments online. Parents will be able to track the progress of their kids and the Company’s ski schools will immediately know the ability level of every student before the start of each lesson. EpicMix Academy will offer special certified digital pins, which can be easily shared through Facebook and Twitter along with pins for vertical feet, photos and racing medals.

Ski or Ride Locally and Out West

 The Epic Local Pass™

Perfect for snow sports enthusiasts who want to take their annual ski vacation out West and ski unrestricted in their backyard all season long. The Epic Local Pass at $529 offers unlimited and unrestricted skiing at Afton Alps, as well as at Breckenridge, Keystone and Arapahoe Basin with some restrictions at Heavenly, Northstar and Kirkwood. The pass also includes a total of 10 days at Vail and Beaver Creek with holiday restrictions. At the spring rate, the Epic Local Pass pays for itself in just over four days when skiing at the western resorts and is only $130 more than an Afton Alps Pass. A discounted rate is also offered for college students at $479 (proof of 12 credit hours is required).

The Epic Local Child Pass

Children ski and ride all next season at Afton Alps for less than the current 2012-2013 Afton Alps child Pass price and get eight resorts out West for free. New this year at $269, $5 less than the current 2012-2013 season’s child’s pass, children ages 5-12 can receive unlimited access with no restrictions at Afton Alps, as well as unlimited access to resorts out West, including Breckenridge, Keystone and Arapahoe Basin with limited restrictions at Heavenly, Northstar and Kirkwood with the Epic Local Child Pass. The pass also includes a total of 10 days at Vail and Beaver Creek with holiday restrictions.

The Epic Pass™

Ski as much as you want, whenever you want at $689 for adults and $359 for children. Unlimited skiing or riding at Afton Alps, as well as at Vail, Beaver Creek, Breckenridge, Keystone and Arapahoe Basin in Colorado and Heavenly, Northstar and Kirkwood in Lake Tahoe at $689 for adults and $359 for children (ages 5-12). No restrictions. At this spring rate, the Epic Pass pays for itself in just over five days when skiing at the western resorts.

Ski or Ride Afton Alps Only-- Afton Alps Pass

Perfect for people who only plan to ski or ride at Afton Alps. At $399, the same price introduced last spring for the 2012-2013 season, pass holders receive unlimited access to Afton Alps with no restrictions. A discounted rate is also offered for seniors at $269 and college students at $269 (proof of 12 credit hours in the 2013-2014 school year is required). Discounts are available for families and groups of four people. Ski or Snowboard Out West Any Day of the Season for a Great Value Vail Resorts also offers options for guests who want to ski out West but don’t plan to ski more than seven days next winter:

Epic 7-D a y ™

Perfect for people who don’t plan to ski more than seven days. The Epic 7-Day gives skiers and Snowboarders a total of seven unrestricted days of skiing at Afton Alps, Vail, Beaver Creek, Breckenridge, Keystone, Heavenly and Northstar, plus Arapahoe Basin anytime during the season for a price of $529. Ski any seven days all season long. At the spring rate, the Epic 7-Day pays for itself in just over four days.

New this year, the Epic 4-D a y ™

Perfect for people who only plan to take one ski vacation. The Epic 4-Day at
$349 offers four unrestricted tickets valid at Afton Alps, Vail, Beaver Creek, Breckenridge, Keystone, Heavenly,
Northstar, Kirkwood and Arapahoe Basin. At the spring rate, the Epic 4-Day pays for itself in less than three days.

Pay $49 Down Now and Lock in The Lowest Price Available with Six Buddy Tickets

Vail Resorts is making it as easy as possible for guests to lock in the lowest guaranteed pass prices with a $49 down payment now and the remaining balance due in mid-September 2013. Season pass holders also will receive six discounted single-day lift tickets, or “buddy” tickets, to ski with family and friends. The lowest guaranteed 2013-2014 season pass prices and the six buddy tickets are only guaranteed through April 14, 2013. After April 14, those who purchase a season pass will receive only two buddy tickets.

Season Pass Insurance Option

Protect Your Pass Investment in the Event of Unexpected CircumstancesVail Resorts encourages guests to purchase pass insurance. All of its pass products are non-refundable and nontransferrable; however, pass insurance covers pass holders in the event ofunexpected circumstances including sickness, injury and job loss. Pass insurance is $20 for adults and $10 for children (ages 5-12). Coverage applies for all season passes and the Epic 7-Day and Epic 4-Day valid for the 2013-2014 ski season.

For more information about Vail Resorts’ season passes or to purchase a pass online, visit www.epicpass.com