| Delaware                                                       |   | 51-0291762                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 390 Interlocken Crescent Broomfield, Colorado             |   |  80021                          |
| (Address of Principal Executive Offices)                       |   | (Zip Code)                           |

|                                                                                      | (303) 404-1800                                             |                                       |
|-------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|
|                                                                                      | (Registrant’s Telephone Number, Including Area Code) |                                       |
|                                                                                      |                                                       |                                       |
| Securities registered pursuant to Section 12(b) of the Act:                               |
| Title of each class:                                                                      |                                                       | Name of each exchange on which registered: |
| Common Stock, $0.01 par value                                                             |                                                       | New York Stock Exchange                    |
|                                                                                      |
| Securities registered pursuant to Section 12(g) of the Act:                               |
|        None.        |
| (Title of Class)                                                                          |

| Table of Contents                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |
| PART I                                                                                                                                        |
|                                                                                                                                          |   |
| Item 1.                                                                                                                                       | Business. | 3 |
| Item 1A.                                                                                                                                      | Risk Factors. | 15 |
| Item 1B.                                                                                                                                      | Unresolved Staff Comments. | 23 |
| Item 2.                                                                                                                                       | Properties. | 23 |
| Item 3.                                                                                                                                       | Legal Proceedings. | 24 |
| Item 4.                                                                                                                                       | Removed and Reserved. | 25 |
|                                                                                                                                          |   |
|                        PART II  |   |
|                                                                                                                                          |   |
| Item 5.                                                                                                                                       | Market for Registrant's Common Equity, Related Stockholder Matters and |   |
|                                                                                                                                          | Issuer Purchases of Equity Securities. | 26 |
| Item 6.                                                                                                                                       | Selected Financial Data. | 27 |
| Item 7.                                                                                                                                       | Management's Discussion and Analysis of Financial Condition and Results of Operations. | 30 |
| Item 7A.                                                                                                                                      | Quantitative and Qualitative Disclosures About Market Risk. | 47 |
| Item 8.                                                                                                                                       | Financial Statements and Supplementary Data. | F-1 |
| Item 9.                                                                                                                                       | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. | 48 |
| Item 9A.                                                                                                                                      | Controls and Procedures. | 48 |
| Item 9B.                                                                                                                                      | Other Information. | 48 |
|                                                                                                                                          |   |
|                        PART III |   |
|                                                                                                                                          |   |
| Item 10.                                                                                                                                      | Directors, Executive Officers and Corporate Governance. | 48 |
| Item 11.                                                                                                                                      | Executive Compensation. | 49 |
| Item 12.                                                                                                                                      | Security Ownership of Certain Beneficial Owners and |   |
|                                                                                                                                          | Management and Related Stockholder Matters. | 49 |
| Item 13.                                                                                                                                      | Certain Relationships and Related Transactions, and Director Independence. | 49 |
| Item 14.                                                                                                                                      | Principal Accountant Fees and Services. | 49 |
|                                                                                                                                          |   |
|                        PART IV  |   |
|                                                                                                                                          |   |
| Item 15.                                                                                                                            | Exhibits, Financial Statements Schedules. | 49 |

| ·   | prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unfavorable weather conditions or natural disasters; |
|--------------------|------------------------------------------------------|

| ·   | adverse events that occur during our peak operating periods combined with the seasonality of our business; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | competition in our mountain and lodging businesses; |
|--------------------|-----------------------------------------------------|

| ·   | our ability to grow our resort and real estate operations; |
|--------------------|------------------------------------------------------------|

| ·   | our ability to successfully complete real estate development projects and achieve the anticipated financial benefits from such projects; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | further adverse changes in real estate markets; |
|--------------------|-------------------------------------------------|

| ·   | continued volatility in credit markets; |
|--------------------|-----------------------------------------|

| ·   | our ability to obtain financing on terms acceptable to us to finance our real estate development, capital expenditures and growth strategy; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our reliance on government permits or approvals for our use of Federal land or to make operational improvements; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | adverse consequences of current or future legal claims; |
|--------------------|---------------------------------------------------------|

| ·   | our ability to hire and retain a sufficient seasonal workforce; |
|--------------------|-----------------------------------------------------------------|

| ·   | willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases, and the cost and availability of travel options; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | negative publicity which diminishes the value of our brands; |
|--------------------|--------------------------------------------------------------|

| ·   | our ability to integrate and successfully realize anticipated benefit of  future acquisitions; and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | implications arising from new Financial Accounting Standards Board (“FASB”)/governmental legislation, rulings or interpretations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Breckenridge Ski Resort (“Breckenridge”) – the single most visited ski resort in the United States for the 2009/2010 ski season and host of the highest chairlift in North America, the Imperial Express SuperChair, reaching 12,840 feet and offering above tree line expert terrain.  Breckenridge is well known for its historic town, vibrant nightlife and progressive and award-winning pipes and parks. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Vail Mountain (“Vail Mountain”) – the second most visited ski resort in the United States for the 2009/2010 ski season and the single largest ski mountain in the United States.  Vail Mountain offers some of the most expansive and varied terrain with approximately 5,300 skiable acres including seven world renowned back bowls and the resort’s rustic Blue Sky Basin. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Keystone Resort (“Keystone”) – the fourth most visited ski resort in the United States for the 2009/2010 ski season and home to the highly renowned A51 Terrain Park as well as the largest area of night skiing in Colorado.  Keystone also offers guests a unique skiing opportunity through guided snow cat ski tours accessing five bowls. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Beaver Creek Resort (“Beaver Creek”) – the sixth most visited ski resort in the United States for the 2009/2010 ski season.  Beaver Creek is a European –style resort with multiple villages and also includes a world renowned children’s ski school program focused on providing a first-class experience with unique amenities such as a dedicated children’s gondola.  Beaver Creek also annually hosts the only North American men’s World Cup downhill races. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Heavenly Mountain Resort (“Heavenly”) – the eighth most visited ski resort in the United States for the 2009/2010 ski season and the second largest ski resort in the United States with over 4,800 skiable acres.  Heavenly straddles the border of California and Nevada and offers unique and spectacular views of Lake Tahoe.  Heavenly boasts the largest snowmaking capacity in the Lake Tahoe region and offers great nightlife including its proximity to several casinos. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | World-Class Mountain Resorts and Integrated Base Resort Areas |
|--------------------|---------------------------------------------------------------|

| ·   | Snow Conditions |
|--------------------|-----------------|

| ·   | Lift Service |
|--------------------|--------------|

| ·   | Terrain Parks |
|--------------------|---------------|

| ·   | Commitment to Guest Service |
|--------------------|-----------------------------|

| ·   | Season Pass Products |
|--------------------|----------------------|

| ·   | Premier Ski Schools |
|--------------------|---------------------|

| ·   | On-Mountain Activities |
|--------------------|------------------------|

| ·   | Dining |
|--------------------|--------|

| ·   | Retail/rental |
|--------------------|---------------|

| ·   | Lodging and Real Estate Development |
|--------------------|-------------------------------------|

| ·   | Environmental Stewardship and Social Responsibility |
|--------------------|-----------------------------------------------------|

| ·   | Colorado resorts |
|--------------------|------------------|

| ·   | Heavenly |
|--------------------|----------|

| ·   | RockResorts -- a luxury hotel management company with a current portfolio of eleven properties, including four Company-owned and seven managed third-party owned resort hotels with locations in Colorado, Wyoming, New Mexico, Florida, Dominican Republic and St. Lucia, West Indies as well as three properties currently under development that we will manage; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Six additional independently flagged Company-owned hotels, management of the Vail Marriott Mountain Resort & Spa (“Vail Marriott”), Mountain Thunder Lodge, Crystal Peak Lodge and Austria Haus Hotel and condominium management operations, all of which are in and around our Colorado ski resorts; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | GTLC -- a summer destination resort with three resort properties in the Grand Teton National Park and the Jackson Hole Golf & Tennis Club (“JHG&TC”) near Jackson, Wyoming; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | CME -- a resort ground transportation company; and |
|--------------------|----------------------------------------------------|

| ·   | Five Company-owned resort golf courses in Colorado and one in Wyoming. |
|--------------------|------------------------------------------------------------------------|

|                                                                               |                              |                    |   |
|------------------------------------------------------------------------------------|-----------------------------------|-------------------------|--------|
| Name                                                                               | Location                          | Own/Manage              | Rooms  |
|                                                                               |                              |                    |   |
| RockResorts:                                                                       |                              |                    |   |
| The Lodge at Vail                                                                  | Vail, CO                          | Own                     | 164*   |
| The Arrabelle at Vail Square                                                       | Vail, CO                          | Own                     | 87*    |
| The Pines Lodge                                                                    | Beaver Creek, CO                  | Own                     | 68*    |
| The Osprey at Beaver Creek                                                         | Beaver Creek, CO                  | Own                     | 46*    |
| La Posada de Santa Fe                                                              | Santa Fe, NM                      | Manage                  | 157    |
| Snake River Lodge & Spa                                                        | Teton Village, WY                 | Manage                  | 153    |
| Hotel Jerome                                                                       | Aspen, CO                         | Manage                  | 94     |
| The Landings St. Lucia                                                             | St. Lucia, West Indies            | Manage                  | 64     |
| Tempo                                                                              | Miami, FL                         | Manage                  | 56     |
| One Ski Hill Place                                                                 | Breckenridge, CO                  | Manage                  | 21     |
| Balcones del Atlantico                                                             | Santo Domingo, Dominican Republic | Manage                  | 16     |
|                                                                               |                              |                    |   |
| Other Hotels and Resorts:                                                          |                              |                    |   |
| The Great Divide Lodge                                                             | Breckenridge, CO                  | Own                     | 208    |
| The Keystone Lodge                                                                 | Keystone, CO                      | Own                     | 152    |
| Inn at Keystone                                                                    | Keystone, CO                      | Own                     | 103    |
| Breckenridge Mountain Lodge                                                        | Breckenridge, CO                  | Own                     | 71     |
| Village Hotel                                                                      | Breckenridge, CO                  | Own                     | 60     |
| Ski Tip Lodge                                                                      | Keystone, CO                      | Own                     | 10     |
| Jackson Lake Lodge                                                                 | Grand Teton Nat'l Pk., WY         | Concessionaire Contract | 385    |
| Colter Bay Village                                                                 | Grand Teton Nat'l Pk., WY         | Concessionaire Contract | 166    |
| Jenny Lake Lodge                                                                   | Grand Teton Nat'l Pk., WY         | Concessionaire Contract | 37     |
| Vail Marriott Mountain Resort  & Spa                                 | Vail, CO                          | Manage                  | 342    |
| Mountain Thunder Lodge                                                             | Breckenridge, CO                  | Manage                  | 99     |
| Crystal Peak Lodge                                                                 | Breckenridge, CO                  | Manage                  | 30     |
| Austria Haus Hotel                                                                 | Vail, CO                          | Manage                  | 25     |
|  *Includes individual owner units that are in a rental program managed by us. |

| ·   | All of our hotels are located in unique highly desirable resort destinations. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Our hotel portfolio has achieved some of the most prestigious hotel designations in the world, including 7 properties and 5 hotel restaurants in our portfolio that are currently rated as AAA 4-Diamond. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our RockResorts brand is a historic brand name with a rich tradition associated with high quality luxury resort hotels. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Many of our hotels (both owned and managed) are designed to provide a look that feels indigenous to their surroundings, enhancing the guest's vacation experience. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each of our RockResorts hotels provides the same high level of quality and services, while still providing unique characteristics which distinguish the resorts from one another.  This appeals to travelers looking for consistency in quality and service offerings together with an experience more unique than typically offered by larger luxury hotel chains. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Many of the hotels in our portfolio provide a wide array of amenities available to the guest such as access to world-class ski and golf resorts, spa and fitness facilities, water sports and a number of other outdoor activities as well as highly acclaimed dining options. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Conference space with the latest technology is available at most of our hotels.  In addition, guests at Keystone can use our company-owned Keystone Conference Center, the largest conference facility in the Colorado Rocky Mountain region with more than 100,000 square feet of meeting, exhibit and function space. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have a central reservations system that leverages off of our ski resort reservations system and has an online planning and booking platform, offering our guests a seamless and useful way to make reservations at our resorts. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We actively upgrade the quality of the accommodations and amenities available at our hotels through capital improvements.  Capital funding for third-party owned properties is provided by the owners of those properties to maintain standards required by our management contracts.  Projects completed over the past three years include a full renovation of The Osprey at Beaver Creek (formerly known as the Inn at Beaver Creek), extensive upgrades to The Lodge at Vail, including a fully renovated ballroom, renovated meeting spaces, room upgrades and the addition of a 7,500 square foot spa, renovation of the Village Hotel in Breckenridge, extensive room upgrades at GTLC’s historic Jackson Lake Lodge and guest room renovation at the Keystone Lodge. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Risks Related to Our Business |
|-------------------------------|

| ·   | proximity to population centers; |
|--------------------|----------------------------------|

| ·   | availability and cost of transportation to ski areas; |
|--------------------|-------------------------------------------------------|

| ·   | ease of travel to ski areas (including direct flights by major airlines); |
|--------------------|---------------------------------------------------------------------------|

| ·   | pricing of lift tickets and/or season passes and the number, quality and price of related ancillary services (ski school, dining and retail/rental), amenities and lodging; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | snowmaking facilities; |
|--------------------|------------------------|

| ·   | type and quality of skiing and snowboarding offered; |
|--------------------|------------------------------------------------------|

| ·   | duration of the ski season; |
|--------------------|-----------------------------|

| ·   | weather conditions; and |
|--------------------|-------------------------|

| ·   | reputation. |
|--------------------|-------------|

| ·   | sustained deterioration in real estate markets; |
|--------------------|-------------------------------------------------|

| ·   | escalation in construction costs due to price increases in commodities, unforeseen conditions, inadequate design or drawings, or other causes; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | difficulty in selling units or the ability of buyers to obtain necessary funds to close on units; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | work stoppages; |
|--------------------|-----------------|

| ·   | weather interferences; |
|--------------------|------------------------|

| ·   | shortages in obtaining materials; |
|--------------------|-----------------------------------|

| ·   | difficulty in financing real estate development projects; |
|--------------------|-----------------------------------------------------------|

| ·   | difficulty in receiving the necessary regulatory approvals; |
|--------------------|-------------------------------------------------------------|

| ·   | difficulty in obtaining qualified contractors or subcontractors; and |
|--------------------|----------------------------------------------------------------------|

| ·   | unanticipated incremental remediation costs related to design and construction issues. |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | our future operating performance; |
|--------------------|-----------------------------------|

| ·   | general economic conditions and economic conditions affecting the resort industry, the ski industry and the general capital markets; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to meet our pre-sell targets on our vertical real estate development projects; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | competition; and |
|--------------------|------------------|

| ·   | legislative and regulatory matters affecting our operations and business. |
|--------------------|---------------------------------------------------------------------------|

| ·   | cash flow from operations; |
|--------------------|----------------------------|

| ·   | construction financing, including non-recourse or other financing; |
|--------------------|--------------------------------------------------------------------|

| ·   | bank borrowings; |
|--------------------|------------------|

| ·   | public offerings of debt or equity; and |
|--------------------|-----------------------------------------|

| ·   | private placements of debt or equity. |
|--------------------|---------------------------------------|

| ·   | inability to integrate acquired businesses into our operations; |
|--------------------|-----------------------------------------------------------------|

| ·   | diversion of our management’s attention; |
|--------------------|------------------------------------------------|

| ·   | potential increased debt leverage; |
|--------------------|------------------------------------|

| ·   | litigation arising from acquisition activity; and |
|--------------------|---------------------------------------------------|

| ·   | unanticipated problems or liabilities. |
|--------------------|----------------------------------------|

| Risks Relating to Our Capital Structure |
|-----------------------------------------|

| ·   | quarterly variations in our operating results; |
|--------------------|------------------------------------------------|

| ·   | operating results that vary from the expectations of securities analysts and investors; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | change in valuations, including our future real estate developments; |
|--------------------|----------------------------------------------------------------------|

| ·   | changes in the overall travel, gaming, hospitality and leisure industries; |
|--------------------|----------------------------------------------------------------------------|

| ·   | changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors or such guidance provided by us; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | announcements by us or companies in the travel, gaming, hospitality and leisure industries of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures, capital commitments, plans, prospects, service offerings or operating results; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additions or departures of key personnel; |
|--------------------|-------------------------------------------|

| ·   | future sales of our securities; |
|--------------------|---------------------------------|

| ·   | trading and volume fluctuations; |
|--------------------|----------------------------------|

| ·   | other risk factors as discussed above; and |
|--------------------|--------------------------------------------|

| ·   | other unforeseen events. |
|--------------------|--------------------------|

| ·   | delay, defer or prevent a change in control of our company; |
|--------------------|-------------------------------------------------------------|

| ·   | discourage bids for our securities at a premium over the market price; |
|--------------------|------------------------------------------------------------------------|

| ·   | adversely affect the market price of, and the voting and other rights of the holders of our securities; or |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | impede the ability of the holders of our securities to change our management. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | make it more difficult for us to satisfy our obligations; |
|--------------------|-----------------------------------------------------------|

| ·   | increase our vulnerability to general adverse economic and industry conditions; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, real estate developments, marketing efforts and other general corporate purposes; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | place us at a competitive disadvantage compared to our competitors that have less debt; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | limit our ability to borrow additional funds. |
|--------------------|-----------------------------------------------|

| ·   | incur additional debt; |
|--------------------|------------------------|

| ·   | pay dividends, repurchase our stock and make other restricted payments; |
|--------------------|-------------------------------------------------------------------------|

| ·   | create liens; |
|--------------------|---------------|

| ·   | make investments; |
|--------------------|-------------------|

| ·   | engage in sales of assets and subsidiary stock; |
|--------------------|-------------------------------------------------|

| ·   | enter into sale-leaseback transactions; |
|--------------------|-----------------------------------------|

| ·   | enter into transactions with affiliates; |
|--------------------|------------------------------------------|

| ·   | transfer all or substantially all of our assets or enter into merger or consolidation transactions; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | make capital expenditures. |
|--------------------|----------------------------|

| Location                                            |   | Ownership                |   | Use                                                                                                                                                             |
|-----------------------------------------------------|--------|--------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Arrowhead Mountain, CO                         |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements and commercial space                                                   |
| BC Housing Riveredge, CO                            |   | 26% Owned                |   | Employee housing facilities                                                                                                                                     |
| Bachelor Gulch Village, CO                     |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements and commercial space                                                   |
| Beaver Creek Resort, CO                        |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements, commercial space and real estate held for sale or development         |
| Beaver Creek Mountain, CO (3,849 acres)             |   | Special Use Permit       |   | Ski trails, ski lifts, buildings and other improvements                                                                                                         |
| Beaver Creek Mountain Resort, CO               |   | Owned                    |   | Golf course, clubhouse, commercial space  and residential units                                                                                       |
| Breckenridge Ski Resort, CO                         |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements, commercial space and real estate held for sale or development         |
| Breckenridge Mountain, CO (5,702 acres)             |   | Special Use Permit       |   | Ski trails, ski lifts, buildings and other improvements                                                                                                         |
| Breckenridge Mountain Lodge                         |   | Owned                    |   | Lodging                                                                                                                                                         |
| Breckenridge Terrace, CO                            |   | 50% Owned                |   | Employee housing facilities                                                                                                                                     |
| Broomfield, CO                                      |   | Leased                   |   | Corporate offices                                                                                                                                               |
| Colter Bay Village, WY                              |   | Concessionaire contract  |   | Lodging and dining facilities                                                                                                                                   |
| Eagle-Vail, CO                                      |   | Owned                    |   | Warehouse facility                                                                                                                                              |
| Edwards, CO                                         |   | Leased                   |   | Administrative offices                                                                                                                                          |
| Great Divide Lodge, CO                              |   | Owned                    |   | Lodging, dining and conference facilities                                                                                                                       |
| Heavenly Mountain Resort, CA & NV               |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements and commercial space                                                   |
| Heavenly Mountain Resort, CA & NV (7,050 acres) |   | Special Use Permit       |   | Ski trails, ski lifts, buildings and other improvements                                                                                                         |
| Inn at Keystone, CO                                 |   | Owned                    |   | Lodging, dining and conference facilities                                                                                                                       |
| Jackson Hole Golf & Tennis Club, WY             |   | Owned                    |   | Golf course, clubhouse, tennis facilities, dining and real estate held for sale or development                                                                  |
| Jackson Lake Lodge, WY                              |   | Concessionaire contract  |   | Lodging, dining and conference facilities                                                                                                                       |
| Jenny Lake Lodge, WY                                |   | Concessionaire contract  |   | Lodging and dining facilities                                                                                                                                   |
| Keystone Conference Center, CO                      |   | Owned                    |   | Conference facility                                                                                                                                             |
| Keystone Lodge, CO                                  |   | Owned                    |   | Lodging, spa, dining and conference facilities                                                                                                                  |
| Keystone Resort, CO                                 |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements, commercial space, dining and real estate held for sale or development |
| Keystone Mountain, CO (8,376 acres)                 |   | Special Use Permit       |   | Ski trails, ski lifts, buildings and other improvements                                                                                                         |
| Keystone Ranch, CO                                  |   | Owned                    |   | Golf course, clubhouse and dining facilities                                                                                                                    |
| Red Sky Ranch, CO                                   |   | Owned                    |   | Golf courses, clubhouses, dining facilities and real estate held for sale or development                                                                        |
| River Course at Keystone, CO                        |   | Owned                    |   | Golf course and clubhouse                                                                                                                                       |
| Seasons at Avon, CO                                 |   | Leased/50% Owned         |   | Administrative offices                                                                                                                                          |
| Ski Tip Lodge, CO                                   |   | Owned                    |   | Lodging and dining facilities                                                                                                                                   |
| The Arrabelle at Vail Square, CO                    |   | Owned                    |   | Lodging, spa, dining and conference facilities                                                                                                                  |
| The Lodge at Vail, CO                               |   | Owned                    |   | Lodging, spa, dining and conference facilities                                                                                                                  |
| The Osprey at Beaver Creek, CO                      |   | Owned                    |   | Lodging, dining and conference facilities                                                                                                                       |
| The Tarnes at Beaver Creek, CO                      |   | 31% Owned                |   | Employee housing facilities                                                                                                                                     |
| Tenderfoot Housing, CO                              |   | 50% Owned                |   | Employee housing facilities                                                                                                                                     |
| The Pines Lodge at Beaver Creek, CO                 |   | Owned                    |   | Lodging, dining and conference facilities                                                                                                                       |
| Vail Mountain, CO                              |   | Owned                    |   | Ski resort operations, including ski lifts, ski trails, buildings and other improvements, commercial space and real estate held for sale or development         |
| Vail Mountain, CO (12,226 acres)                    |   |  Special Use Permit |   | Ski trails, ski lifts, buildings and other improvements                                                                                                         |
| Village at Breckenridge, CO                         |   | Owned                    |   | Lodging, dining, conference facilities and commercial space                                                                                                     |
| SSI Venture, LLC (“SSV”) Properties     |   | Owned                    |   | Over 130 retail stores (of which 87 stores are currently held under lease) for recreational products including rental                                           |

| Quarter Ended    | October 31                           | January 31                           | April 30                             | July 31                              | Fiscal Year                          |
|------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| Fiscal Year 2010 |                                 |                                 |                                 |                                 |                                 |
| High             | $     38.96 | $     42.43 | $     48.40 | $     49.00 | $     49.00 |
| Low              | $     28.48 | $     32.85 | $     32.89 | $     33.50 | $     28.48 |
|             |                                 |                                 |                                 |                                 |                                 |
| Fiscal Year 2009 |                                 |                                 |                                 |                                 |                                 |
| High             | $     52.00 | $     33.43 | $     30.42 | $     31.10 | $     52.00 |
| Low              | $     21.67 | $     14.79 | $     14.76 | $     23.71 | $     14.76 |
|             |                                 |                                 |                                 |                                 |                                 |

|  Period                       |   |  Total Number of Shares Purchased |   |    |  Average Price Paid per Share |   |   |  Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) |   |   |  Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) |   |
|------------------------------------|--------|----------------------------------------|--------|---------|------------------------------------|--------|--------|--------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|
| May 1, 2010 – May 31, 2010   |   | --                                     |   |  $ | --                                 |   |   | --                                                                                         |   |   | 2,121,465                                                                                |   |
| June 1, 2010 – June 30, 2010 |   | 386,269                                |   |    | 38.83                              |   |   | 386,269                                                                                    |   |   | 1,735,196                                                                                |   |
| July 1, 2010 – July 31, 2010 |   | --                                     |   |    | --                                 |   |   | --                                                                                         |   |   | 1,735,196                                                                                |   |
| Total                              |   | 386,269                                |   |  $ | 38.83                              |   |   | 386,269                                                                                    |   |   |                                                                                     |   |

| (1)   | On March 9, 2006, our Board of Directors approved the repurchase of up to 3,000,000 shares of common stock and on July 16, 2008 approved an increase of our common stock repurchase authorization by an additional 3,000,000 shares.  Acquisitions under the share repurchase program may be made from time to time at prevailing prices as permitted by applicable laws, and subject to market conditions and other factors.  The stock repurchase program may be discontinued at any time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | Year Ended July 31, |
|-----------------------------------------------------------------|--------|---------------------|
|                                                            |   | 2010(1)             |   | 2009(1) |   | 2008(1) | 2007(1) |   | 2006 (1) |
| Statement of Operations Data:                                   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenue:                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                        |   | $                   | 638,495 |   |   | $ | 614,597 |   |   | $ | 685,533 |   | $ | 665,377 |   |   | $ | 620,441 |   |
| Lodging                                                         |   |                | 169,130 |   |   |   | 176,241 |   |   |   | 170,057 |   |   | 162,451 |   |   |   | 155,807 |   |
| Real estate                                                     |   |                | 61,007 |   |   |   | 186,150 |   |   |   | 296,566 |   |   | 112,708 |   |   |   | 62,604 |   |
| Total net revenue                                               |   |                | 868,632 |   |   |   | 976,988 |   |   |   | 1,152,156 |   |   | 940,536 |   |   |   | 838,852 |   |
| Segment operating expense:                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                        |   |                | 456,017 |   |   |   | 451,025 |   |   |   | 470,362 |   |   | 462,708 |   |   |   | 443,116 |   |
| Lodging                                                         |   |                | 166,738 |   |   |   | 169,482 |   |   |   | 159,832 |   |   | 144,252 |   |   |   | 142,693 |   |
| Real estate                                                     |   |                | 71,402 |   |   |   | 142,070 |   |   |   | 251,338 |   |   | 115,190 |   |   |   | 56,676 |   |
| Total segment operating expense                                 |   |                | 694,157 |   |   |   | 762,577 |   |   |   | 881,532 |   |   | 722,150 |   |   |   | 642,485 |   |
| Depreciation and amortization                                   |   |                | (110,638 | ) |   |   | (107,213 | ) |   |   | (93,794 | ) |   | (87,664 | ) |   |   | (86,098 | ) |
| Gain on sale of real property                                   |   |                | 6,087 |   |   |   | -- |   |   |   | 709 |   |   | -- |   |   |   | -- |   |
| Mountain equity investment income, net                          |   |                | 1,558 |   |   |   | 817 |   |   |   | 5,390 |   |   | 5,059 |   |   |   | 3,876 |   |
| Real estate equity investment income, net                       |   |                | -- |   |   |   | -- |   |   |   | -- |   |   | -- |   |   |   | 791 |   |
| Investment income, net                                          |   |                | 445 |   |   |   | 1,793 |   |   |   | 8,285 |   |   | 12,403 |   |   |   | 7,995 |   |
| Interest expense, net                                           |   |                | (17,515 | ) |   |   | (27,548 | ) |   |   | (30,667 | ) |   | (32,625 | ) |   |   | (36,478 | ) |
| Contract dispute credit (charges), net                          |   |                | -- |   |   |   | -- |   |   |   | 11,920 |   |   | (4,642 | ) |   |   | (3,282 | ) |
| Income before provision for income taxes                        |   |                | 53,797 |   |   |   | 81,196 |   |   |   | 170,933 |   |   | 108,452 |   |   |   | 81,704 |   |
| Net income                                                      |   |                | 35,775 |   |   |   | 50,552 |   |   |   | 107,847 |   |   | 69,198 |   |   |   | 52,450 |   |
| Net (income) attributable to noncontrolling interests           |   |                | (5,390 | ) |   |   | (1,602 | ) |   |   | (4,920 | ) |   | (7,801 | ) |   |   | (6,694 | ) |
| Net income attributable to Vail Resorts, Inc.                   |   | $                   | 30,385 |   |   | $ | 48,950 |   |   | $ | 102,927 |   | $ | 61,397 |   |   | $ | 45,756 |   |
| Diluted net income per share attributable to Vail Resorts, Inc. |   | $                   |     0.83 |   |   | $ | 1.33 |   |   | $ | 2.64 |   | $ | 1.56 |   |   | $ | 1.19 |   |
|                                                            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                                     |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Skier visits(2)                                                 |   |                | 6,010 |   |   |   | 5,864 |   |   |   | 6,195 |   |   | 6,219 |   |   |   | 6,288 |   |
| ETP (3)                                                         |   | $                   | 48.13 |   |   | $ | 47.16 |   |   | $ | 48.74 |   | $ | 46.15 |   |   | $ | 41.83 |   |
| Lodging                                                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ADR(4)                                                          |   | $                   | 235.02 |   |   | $ | 225.12 |   |   | $ | 230.17 |   | $ | 216.83 |   |   | $ | 202.27 |   |
| RevPAR(5)                                                       |   | $                   | 88.14 |   |   | $ | 93.10 |   |   | $ | 106.43 |   | $ | 99.58 |   |   | $ | 92.41 |   |
| Real Estate                                                     |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate held for sale and investment(6)                     |   | $                   | 422,164 |   |   | $ | 311,485 |   |   | $ | 249,305 |   | $ | 357,586 |   |   | $ | 259,384 |   |
| Other Balance Sheet Data                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents(7)                                    |   | $                   | 14,745 |   |   | $ | 69,298 |   |   | $ | 162,345 |   | $ | 230,819 |   |   | $ | 191,794 |   |
| Total assets                                                    |   | $                   | 1,922,809 |   |   | $ | 1,884,480 |   |   | $ | 1,925,954 |   | $ | 1,909,123 |   |   | $ | 1,687,643 |   |
| Long-term debt (including long-term debt due within one year)   |   | $                   | 526,711 |   |   | $ | 491,960 |   |   | $ | 556,705 |   | $ | 594,110 |   |   | $ | 531,228 |   |
| Net debt(8)                                                     |   | $                   | 511,966 |   |   | $ | 422,662 |   |   | $ | 394,360 |   | $ | 363,291 |   |   | $ | 339,434 |   |
| Total Stockholders' equity                                      |   | $                   | 802,387 |   |   | $ | 780,706 |   |   | $ | 725,484 |   | $ | 704,801 |   |   | $ | 633,405 |   |

| (1) | We have made several acquisitions and dispositions which impact comparability between years during the past five years.  The more significant of those include the acquisitions of: The remaining noncontrolling interest in SSI Venture LLC known as SSV (acquired in April 2010), Mountain News Corporation (“Mountain News”) (acquired May 2010), CME (acquired in November 2008), 18 retail/rental locations (acquired by SSV in June 2007), two licensed Starbucks stores (acquired in June 2007) and six retail locations (acquired by SSV in August 2006).  Additionally, we sold our majority interest in RTP, LLC (“RTP”) (sold in April 2007) and Snake River Lodge & Spa (sold in January 2006).  See Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, in Item 8 of this Form 10-K for the impact to the Consolidated Statements of Operations and Consolidated Balance Sheets as a result of the adoption of ASC Topic 810, “Consolidation” (SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51”). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | A skier visit represents a person utilizing a ticket or pass to access a mountain resort for any part of one day, and includes both paid and complimentary access. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | ETP is calculated by dividing lift ticket revenue by total skier visits during the respective periods. |
|-----|--------------------------------------------------------------------------------------------------------|

| (4) | ADR is calculated by dividing total room revenue (includes both owned and managed condominium room revenue) by the number of occupied rooms during the respective periods. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | RevPAR is calculated by dividing total room revenue (includes both owned and managed condominium room revenue) by the number of rooms that are available to guests during the respective periods. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Real estate held for sale and investment includes all land, development costs and other improvements associated with real estate held for sale and investment, as well as investments in real estate joint ventures. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Cash and cash equivalents excludes restricted cash. |
|-----|-----------------------------------------------------|

| (8) | Net debt is defined as long-term debt plus long-term debt due within one year less cash and cash equivalents. |
|-----|---------------------------------------------------------------------------------------------------------------|

| ·   | Although we experienced improved operating results for Fiscal 2010 compared to Fiscal 2009 in our Mountain segment in part due to a strong spring break and Easter holiday period during which visitation to our mountain resorts improved, as well as an increase in overall guest spend on ancillary services to levels that approached the spring break and Easter holiday periods of 2007 and 2008, uncertainties still exist surrounding the strength and duration of the general economic environment.  Conditions currently present or recently present in the economic environment including high unemployment, erosion of consumer confidence, financial instability in the global markets and weakness in the real estate market may potentially continue to have negative effects on the travel and leisure industry and our results of operations.  Because of these uncertainties we cannot predict whether recent favorable trends in visitation and guest spend will continue and what impact the economic environment may have on our future results of operations, in particular for the 2010/2011 ski season. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The timing and amount of snowfall can have an impact on Mountain and Lodging revenue particularly in regards to skier visits and the duration and frequency of guest visitation.  To help mitigate this impact, we sell a variety of season pass products prior to the beginning of the season to In-State guests and Destination guests.  Additionally, we have invested in snowmaking upgrades in an effort to address the inconsistency of early season snowfall where possible.  During the past three ski seasons, early season snowfall has been significantly lower than the historical average, which we believe had a negative impact on early season visitation. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our season pass products provide a value option to our guests, which in turn provides a guest commitment predominately prior to the start of the ski season, resulting in a more stabilized stream of lift revenue for us.  In the spring of 2008, we introduced the Epic Season Pass, which contributed to season pass revenue as a percent of total lift revenue increasing from 26% for the 2007/2008 ski season to 34% and 35% for the 2008/2009 and 2009/2010 ski seasons, respectively.  In March 2010, we began our pre-season pass sales program for the 2010/2011 ski season, including the Epic Season Pass.  During our spring season pass sales program we experienced a decline in advance sales of season pass products for the 2010/2011 ski season primarily due to a decline in Epic Season Pass sales compared to sales during the spring season pass period for the 2009/2010 ski season.  However, early fall sales of season passes have been favorable compared to the same period in the prior year which has resulted in only a slight overall decline to date in total season pass sales for the 2010/2011 ski season compared to total season pass sales through the same early fall sales period for the 2009/2010 ski season.  There can be no assurance that the season pass sales will be similar to historical trends or the overall impact that season pass sales will have on lift revenue for the 2010/2011 ski season. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In response to the economic downturn in 2008 and 2009, we implemented cost reduction initiatives in Fiscal 2009 including a company-wide wage reduction and suspension of our 401(k) plan matching contributions.  We reinstated some of the prior year’s wage and benefit reductions with a 2% interim wage increase for year round employees effective April 1, 2010 and seasonal employees for the 2010/2011 ski season along with partial reinstatement of our matching component of the 401(k) plan.  We currently plan to fully reinstate the previous level of 401(k) matching ratably over a three year period.  We also expect to return in fiscal year ending July 31, 2011 (“Fiscal 2011”) to a more normal level of annual wage increases; however we cannot predict whether any increases in labor costs and other employee benefit costs coupled with other increases in operating costs will be offset by increased revenues. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We held prices flat for most multi-day lift ticket and certain other products and services for the last two ski seasons even though we have historically implemented annual price increases.  Prices for the 2010/2011 ski season have not yet been finalized; and as such, there can be no assurances as to the level of price increases, if any, which will occur and the impact that pricing may have on visitation or revenue. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We operate our ski areas under various Forest Service permits, and many of our operations require permits and approval from governmental authorities; therefore many of our on-mountain capital improvements must go through an approval process.  Changes or impacts to the applicable regulatory environment may have detrimental effects on us. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Real Estate Reported EBITDA is highly dependent on, among other things, the timing of closings on real estate under contract, which determines when revenue and associated cost of sales is recognized.  Changes to the anticipated timing or mix of closing on one or more real estate projects, or unit closings within a real estate project, could materially impact Real Estate Reported EBITDA for a particular quarter or fiscal year. During the fourth quarter of Fiscal 2010, we closed on 36 units, or 61% of the 59 units that were under contract at One Ski Hill Place in Breckenridge, while 23 units that were under contract defaulted.  Additionally, we have another real estate project substantially completed (the Ritz-Carlton Residences, Vail) which units under contract will begin closing during the first quarter of Fiscal 2011.  We have increased risk associated with selling and closing units in these projects as a result of the continued instability in the credit markets and a slowdown in the overall real estate market. Certain buyers have been or may be unable to close on their units due to a reduction in funds available to buyers and/or decreases in mortgage availability and certain buyers may successfully seek rescission of their contracts (see Part I Item 3. Legal Proceedings).  We cannot predict the ultimate number of units that we will sell, the ultimate price we will receive, or when the units will sell.  Additionally, if a prolonged weakness in the real estate market or general economic conditions were to occur we may have to adjust our selling prices in an effort to sell and close on units available for sale, although we currently have no plans to do so. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Over the past several years our Real Estate segment results have reflected the successful completion of several real estate projects including, One Ski Hill Place in Breckenridge, the Arrabelle at Vail Square, Vail’s Front Door, Crystal Peak Lodge at Breckenridge, Gore Creek Place in Vail’s Lionshead Village and Mountain Thunder in Breckenridge.  Additionally, as mentioned above, we have substantially completed the Ritz-Carlton Residences, Vail and units under contract will begin closing in the first quarter of Fiscal 2011.  Although we continue to undertake planning and design work on future projects, we currently do not plan to undertake significant development activities on new projects until the current economic environment for real estate improves.  We believe that, due to our low carrying cost of real estate land investments combined with the absence of third party debt associated with our real estate investments, we are well situated to time the launch of future projects with a more favorable economic environment. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We had $14.7 million in cash and cash equivalents as of July 31, 2010 as well as $283.9 million available under the revolver component of our Credit Facility.  We have and plan to continue to self-fund the completion of the Ritz-Carlton Residences, Vail (we estimate to incur between $20 million and $30 million in cash expenditures subsequent to July 31, 2010) while we have from time to time been required to borrow under the revolver component of our Credit Facility; especially during our seasonal low points outside of the ski season; however, we believe we have reached an inflection point, where as future proceeds from anticipated real estate closings on One Ski Hill Place and the Ritz-Carlton Residences, Vail (for example, we received approximately $100 million in net proceeds from the sale of Ritz-Carlton Residences, Vail fractional units in September 2010)  should now significantly exceed anticipated future construction costs on these projects. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Under GAAP, we are required to test goodwill for impairment annually, which we do during the fourth quarter of each fiscal year.  We evaluate the recoverability of our goodwill by estimating the future discounted cash flows of our reporting units and terminal values of the businesses using projected future levels of income as well as business trends, prospects and market and economic conditions.  We evaluate the recoverability of indefinite-lived intangible assets using the income approach based upon estimated future revenue streams.  Our Fiscal 2010 annual impairment test did not result in a goodwill or indefinite-lived intangible asset impairment (see Critical Accounting Policies in this section of this Form 10-K).  However, if a more severe prolonged weakness in general economic conditions were to occur it could cause less than expected growth and/or reduction in terminal values of our reporting units which may result in a goodwill and/or indefinite-lived intangible asset impairment charge attributable to certain goodwill and/or indefinite lived-intangible assets, particularly related to our lodging operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Year Ended July 31, |
|-----------------------------------------------|--------|---------------------|
|                                          |   | 2010                |   | 2009 |   | 2008 |
| Mountain Reported EBITDA                      |   | $                   | 184,036 |   |   | $ | 164,389 |   |   | $ | 220,561 |   |
| Lodging Reported EBITDA                       |   |                | 2,392 |   |   |   | 6,759 |   |   |   | 10,225 |   |
| Resort Reported EBITDA                        |   |                | 186,428 |   |   |   | 171,148 |   |   |   | 230,786 |   |
| Real Estate Reported EBITDA                   |   |                | (4,308 | ) |   |   | 44,080 |   |   |   | 45,937 |   |
|                                          |   |                |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income taxes      |   |                | 53,797 |   |   |   | 81,196 |   |   |   | 170,933 |   |
| Net income attributable to Vail Resorts, Inc. |   | $                   | 30,385 |   |   | $ | 48,950 |   |   | $ | 102,927 |   |

|                                                           |   |                |    |                |   |    |   |      |    |      | Percentage |
|----------------------------------------------------------------|--------|---------------------|---------|---------------------|--------|---------|--------|-----------|---------|-----------|------------|
|                                                           |   | Year Ended July 31, |    | Increase/(Decrease) |
|                                                           |   | 2010                |    | 2009                |   | 2008    |   | 2010/2009 |    | 2009/2008 |
| Net Mountain revenue:                                          |   |                |    |                |   |    |   |      |    |      |       |   |   |   |   |
|      Lift tickets                     |   | $                   | 289,289 |                | $      | 276,542 |   | $         | 301,914 |      | 4.6        |  % |   | (8.4) |  % |
|      Ski school                       |   |                | 70,694  |                |   | 65,336  |   |      | 81,384  |      | 8.2        |  % |   | (19.7) |  % |
|      Dining                           |   |                | 53,322  |                |   | 52,259  |   |      | 62,506  |      | 2.0        |  % |   | (16.4) |  % |
|      Retail/rental                    |   |                | 154,846 |                |   | 147,415 |   |      | 168,765 |      | 5.0        |  % |   | (12.7) |  % |
|      Other                            |   |                | 70,344  |                |   | 73,045  |   |      | 70,964  |      | (3.7       | )% |   |               2.9 | % |
| Total Mountain net revenue                                     |   | $                   | 638,495 |                | $      | 614,597 |   | $         | 685,533 |      | 3.9        |  % |   | (10.3) |  % |
| Mountain operating expense:                                    |   |                |    |                |   |    |   |      |    |      |       |   |   |   |   |
|      Labor and labor-related benefits |   | $                   | 166,378 |                | $      | 165,550 |   | $         | 175,674 |      | 0.5        |  % |   | (5.8) |  % |
|      Retail cost of sales             |   |                | 65,545  |                |   | 66,022  |   |      | 72,559  |      | (0.7       | )% |   | (9.0) |  % |
|      Resort related fees              |   |                | 35,431  |                |   | 33,102  |   |      | 36,335  |      | 7.0        |  % |   | (8.9) |  % |
|      General and administrative       |   |                | 88,705  |                |   | 83,117  |   |      | 81,220  |      | 6.7        |  % |   |                2.3 | % |
|      Other                            |   |                | 99,958  |                |   | 103,234 |   |      | 104,574 |      | (3.2       | )% |   | (1.3 | )% |
| Total Mountain operating expense                               |   | $                   | 456,017 |                | $      | 451,025 |   | $         | 470,362 |      | 1.1        |  % |   | (4.1) |  % |
| Mountain equity investment income, net                         |   |                | 1,558   |                |   | 817     |   |      | 5,390   |      | 90.7       |  % |   | (84.8) |  % |
| Total Mountain Reported EBITDA                                 |   | $                   | 184,036 |                | $      | 164,389 |   | $         | 220,561 |      | 12.0       |  % |   | (25.5) |  % |
|                                                           |   |                |    |                |   |    |   |      |    |      |       |   |   |   |   |
| Total skier visits                                             |   |                | 6,010   |                |   | 5,864   |   |      | 6,195   |      | 2.5        |  % |   | (5.3 | )% |
| ETP                                                            |   | $                   | 48.13   |                | $      | 47.16   |   | $         | 48.74   |      | 2.1        |  % |   | (3.2 | ) % |

|                                                           |                |    |                |    |      |      |   | Percentage |
|----------------------------------------------------------------|---------------------|---------|---------------------|---------|-----------|-----------|--------|------------|
|                                                           | Year Ended July 31, |    | Increase/(Decrease) |
|                                                           | 2010                | 2009    | 2008                |    | 2010/2009 | 2009/2008 |
| Lodging net revenue:                                           |                |    |                |    |      |      |   |       |   |   |   |   |   |
|      Owned hotel rooms                | $                   | 41,479  | $                   | 43,153  | $         | 46,806    |   | (3.9       | ) | % | (7.8 | ) | % |
|      Managed condominium rooms        |                | 32,074  |                | 34,571  |      | 37,132    |   | (7.2       | ) | % | (6.9 | ) | % |
|      Dining                           |                | 27,235  |                | 30,195  |      | 31,763    |   | (9.8       | ) | % | (4.9 | ) | % |
|      Transportation                   |                | 19,026  |                | 17,975  |      | --        |   | 5.8        |   | % | -- |   | % |
|      Golf                             |                | 13,769  |                | 15,000  |      | 16,224    |   | (8.2       | ) | % | (7.5 | ) | % |
|      Other                            |                | 35,547  |                | 35,347  |      | 38,132    |   | 0.6        |   | % | (7.3 | ) | % |
| Total Lodging net revenue                                      | $                   | 169,130 | $                   | 176,241 | $         | 170,057   |   | (4.0       | ) | % | 3.6 |   | % |
| Lodging operating expense:                                     |                |    |                |    |      |      |   |       |   |   |   |   |   |
|      Labor and labor-related benefits | $                   | 78,698  | $                   | 81,290  | $         | 75,746    |   | (3.2       | ) | % | 7.3 |   | % |
|      General and administrative       |                | 29,361  |                | 27,823  |      | 26,877    |   | 5.5        |   | % | 3.5 |   | % |
|      Other                            |                | 58,679  |                | 60,369  |      | 57,209    |   | (2.8       | ) | % | 5.5 |   | % |
| Total Lodging operating expense                                | $                   | 166,738 | $                   | 169,482 | $         | 159,832   |   | (1.6       | ) | % | 6.0 |   | % |
| Total Lodging Reported EBITDA                                  | $                   | 2,392   | $                   | 6,759   | $         | 10,225    |   | (64.6      | ) | % | (33.9 | ) | % |
|                                                           |                |    |                |    |      |      |   |       |   |   |   |   |   |
| Owned hotel statistics:                                        |                |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                              | $                   | 190.93  | $                   | 183.59  | $         | 184.42    |   | 4.0        |   | % | (0.5 | ) | % |
|      RevPar                           | $                   | 104.90  | $                   | 107.06  | $         | 118.97    |   | (2.0       | ) | % | (10.0 | ) | % |
|                                                           |                |    |                |    |      |      |   |       |   |   |   |   |   |
| Managed condominium statistics:                                |                |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                              | $                   | 291.18  | $                   | 273.38  | $         | 280.37    |   | 6.5        |   | % | (2.5 | ) | % |
|      RevPar                           | $                   | 77.76   | $                   | 84.50   | $         | 98.68     |   | (8.0       | ) | % | (14.4 | ) | % |
|                                                           |                |    |                |    |      |      |   |       |   |   |   |   |   |
| Owned hotel and managed condominium statistics (combined):     |                |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                              | $                   | 235.02  | $                   | 225.12  | $         | 230.17    |   | 4.4        |   | % | (2.2) |   | % |
|      RevPar                           | $                   | 88.14   | $                   | 93.10   | $         | 106.43    |   | (5.3       | ) | % | (12.5) |   | % |
|                                                           |                |    |                |    |      |      |   |       |   |   |   |   |   |

|                                                                      |   |                |   |                |   |    |   |      |   |      |   | Percentage |
|---------------------------------------------------------------------------|--------|---------------------|--------|---------------------|--------|---------|--------|-----------|--------|-----------|--------|------------|
|                                                                      |   | Year Ended July 31, |   | Increase/(Decrease) |
|                                                                      |   | 2010                |   | 2009                |   | 2008    |   | 2010/2009 |   | 2009/2008 |
| Total Real Estate net revenue                                             |   | $                   | 61,007 |                | $      | 186,150 |   |      | $      | 296,566   |   | (67.2      | ) | % |   | (37.2 | ) | % |
| Real Estate operating expense:                                            |   |                |   |                |   |    |   |      |   |      |   |       |   |   |   |   |   |   |
|      Cost of sales (including sales commissions) |   |                | 46,397 |                |   | 111,669 |   |      |   | 225,891   |   | (58.4      | ) | % |   | (50.6 | ) | % |
|      Other                                       |   |                | 25,005 |                |   | 30,401  |   |      |   | 25,447    |   | (17.7      | ) | % |   | 19.5 |   | % |
| Total Real Estate operating expense                                       |   |                | 71,402 |                |   | 142,070 |   |      |   | 251,338   |   | (49.7      | ) | % |   | (43.5 | ) | % |
| Gain on sale of real property                                             |   |                | 6,087  |                |   | --      |   |      |   | 709       |   | --         |   | % |   | (100.0 | ) | % |
| Total Real Estate Reported EBITDA                                         |   | $                   | (4,308 | )                   | $      | 44,080  |   |      | $      | 45,937    |   | (109.8     | ) | % |   | (4.0 | ) | % |

| Operating expense for Fiscal 2009 included cost of sales of $101.1 million commensurate with revenue recognized, primarily driven by the closing on eight Chalet units ($54.1 million in cost of sales with an average cost per square foot of $1,387), 42 residences at Crystal Peak Lodge ($34.2 million in cost of sales with an average cost per square foot of $654) and two units at the Arrabelle ($12.4 million in cost of sales with an average cost per square foot of $1,204).  The cost per square foot for the Arrabelle and Chalets are reflective of the high-end features and amenities associated with these projects and the relatively high construction costs associated with mountain resort development.  The cost per square foot for Crystal Peak Lodge is reflective of its less complicated design features and fewer amenities associated with this project relative to the Arrabelle and Chalets.  Additionally, sales commissions of approximately $10.6 million were incurred commensurate with revenue recognized. Other operating expense of $30.4 million (including $4.1 million of stock-based compensation expense) was primarily comprised of general and administrative costs which include marketing expenses for the major real estate projects under development (including those that have not yet closed), overhead costs such as labor and labor-related benefits and allocated corporate costs.  In addition, included in other segment operating expense for Fiscal 2009, we recorded $2.8 million of estimated costs in excess of anticipated sales proceeds for an affordable housing commitment resulting from the cancellation of a contract by a third party developer related to our JHG&TC development. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | Year Ended July 31, |
|----------------------------------------------------------|--------|---------------------|
|                                                     |   | 2010                |   | 2009 |   | 2008 |
| Mountain Reported EBITDA                                 |   | $                   | 184,036 |   |   | $ | 164,389 |   |   | $ | 220,561 |   |
| Lodging Reported EBITDA                                  |   |                | 2,392 |   |   |   | 6,759 |   |   |   | 10,225 |   |
| Resort Reported EBITDA                                   |   |                | 186,428 |   |   |   | 171,148 |   |   |   | 230,786 |   |
| Real Estate Reported EBITDA                              |   |                | (4,308 | ) |   |   | 44,080 |   |   |   | 45,937 |   |
| Total Reported EBITDA                                    |   |                | 182,120 |   |   |   | 215,228 |   |   |   | 276,723 |   |
| Depreciation and amortization                            |   |                | (110,638 | ) |   |   | (107,213 | ) |   |   | (93,794 | ) |
| Loss on disposal of fixed assets, net                    |   |                | (615 | ) |   |   | (1,064 | ) |   |   | (1,534 | ) |
| Investment income, net                                   |   |                | 445 |   |   |   | 1,793 |   |   |   | 8,285 |   |
| Interest expense, net                                    |   |                | (17,515 | ) |   |   | (27,548 | ) |   |   | (30,667 | ) |
| Contract dispute credit, net                             |   |                | -- |   |   |   | -- |   |   |   | 11,920 |   |
| Income before provision for income taxes                 |   |                | 53,797 |   |   |   | 81,196 |   |   |   | 170,933 |   |
| Provision for income taxes                               |   |                | (18,022 | ) |   |   | (30,644 | ) |   |   | (63,086 | ) |
| Net income                                               |   |                | 35,775 |   |   |   | 50,552 |   |   |   | 107,847 |   |
| Net income attributable to noncontrolling interests      |   |                | (5,390 | ) |   |   | (1,602 | ) |   |   | (4,920) |   |
| Net income  attributable to Vail Resorts, Inc. |   | $                   | 30,385 |   |   | $ | 48,950 |   |   | $ | 102,927 |   |

|                               |   | July 31, |
|------------------------------------|--------|----------|
|                               |   | 2010     |   | 2009 |
| Long-term debt                     |   | $        | 524,842 |   | $ | 491,608 |
| Long-term debt due within one year |   |     | 1,869 |   |   | 352 |
| Total debt                         |   |     | 526,711 |   |   | 491,960 |
| Less: cash and cash equivalents    |   |     | 14,745 |   |   | 69,298 |
| Net Debt                           |   | $        | 511,966 |   | $ | 422,662 |

|                                   |   |   |      | Payments Due by Period |
|----------------------------------------|--------|--------|-----------|------------------------|
|                                   |   |   |      | Fiscal                 |   | 2-3 |   | 4-5 |   |   | More than |
| Contractual Obligations                |   | Total  |      | 2011                   |   | years |   | years |   |   | 5 years |
| Long-Term Debt (1)                     |   | $      | 526,711   |                   | $ | 1,869 |   | $ | 35,686 |   | $ | 390,450 |   | $ | 98,706 |
| Fixed Rate Interest (1)                |   |   | 124,280   |                   |   | 29,569 |   |   | 58,997 |   |   | 20,583 |   |   | 15,131 |
| Operating Leases and Service Contracts |   |   | 98,236    |                   |   | 21,235 |   |   | 26,800 |   |   | 19,327 |   |   | 30,874 |
| Purchase Obligations (2)               |   |   | 255,200   |                   |   | 218,619 |   |   | 36,581 |   |   | -- |   |   | -- |
| Other Long-Term Obligations (3)        |   |   | 1,884     |                   |   | 310 |   |   | 279 |   |   | 260 |   |   | 1,035 |
| Total Contractual Cash Obligations     |   | $      | 1,006,311 |                   | $ | 271,602 |   | $ | 158,343 |   | $ | 430,620 |   | $ | 145,746 |

| Management's Report on Internal Control Over Financial Reporting                                                                                                                                                  | F-2    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                              |   |
| Report of Independent Registered Public Accounting Firm                                                                                                                                                           | F-3    |
|                                                                                                                                                                                                              |   |
| Consolidated Financial Statements                                                                                                                                                                                 |   |
| Consolidated Balance Sheets                                                                                                                                                                                       | F-4    |
| Consolidated Statements of Operations                                                                                                                                                                             | F-5    |
| Consolidated Statements of Stockholders' Equity                                                                                                                                                                   | F-6    |
| Consolidated Statements of Cash Flows                                                                                                                                                                             | F-7    |
| Notes to Consolidated Financial Statements                                                                                                                                                                        | F-8    |
|                                                                                                                                                                                                              |   |
| Financial Statement Schedule:                                                                                                                                                                                     |   |
| The following consolidated financial statement schedule of the Company is filed as part of this Report on Form 10-K and should be read in conjunction with the Company’s Consolidated Financial Statements: |   |
|                                                                                                                                                                                                              |   |
| Schedule II - Valuation and Qualifying Accounts and Reserves                                                                                                                                                      | 57     |

|                                                                                                                    | July 31, |
|-------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                    |     | 2010 |   |   | 2009 |   |
| Assets                                                                                                                  |     |   |   |   |   |   |
| Current assets:                                                                                                         |     |   |   |   |   |   |
| Cash and cash equivalents                                                                                               | $        | 14,745 |   | $ | 69,298 |   |
| Restricted cash                                                                                                         |     | 11,834 |   |   | 11,065 |   |
| Trade receivables, net of allowances of $2,259 and $1,877, respectively                                                 |     | 53,622 |   |   | 58,063 |   |
| Inventories, net of reserves of $1,452 and $1,455, respectively                                                         |     | 48,295 |   |   | 48,947 |   |
| Deferred income taxes (Note 10)                                                                                         |     | 21,406 |   |   | 21,297 |   |
| Other current assets                                                                                                    |     | 20,843 |   |   | 20,318 |   |
| Total current assets                                                                                                    |     | 170,745 |   |   | 228,988 |   |
| Property, plant and equipment, net (Note 5)                                                                             |     | 1,027,390 |   |   | 1,057,658 |   |
| Real estate held for sale and investment                                                                                |     | 422,164 |   |   | 311,485 |   |
| Deferred charges and other assets                                                                                       |     | 25,155 |   |   | 31,976 |   |
| Notes receivable                                                                                                        |     | 6,997 |   |   | 6,994 |   |
| Goodwill, net (Note 5)                                                                                                  |     | 181,085 |   |   | 167,950 |   |
| Intangible assets, net (Note 5)                                                                                         |     | 89,273 |   |   | 79,429 |   |
| Total assets                                                                                                            | $        | 1,922,809 |   | $ | 1,884,480 |   |
|                                                                                                                    |     |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                                                    |     |   |   |   |   |   |
| Current liabilities:                                                                                                    |     |   |   |   |   |   |
| Accounts payable and accrued liabilities (Note 5)                                                                       | $        | 255,326 |   | $ | 245,536 |   |
| Income taxes payable                                                                                                    |     | 32,729 |   |   | 5,460 |   |
| Long-term debt due within one year (Note 4)                                                                             |     | 1,869 |   |   | 352 |   |
| Total current liabilities                                                                                               |     | 289,924 |   |   | 251,348 |   |
| Long-term debt (Note 4)                                                                                                 |     | 524,842 |   |   | 491,608 |   |
| Other long-term liabilities (Note 5)                                                                                    |     | 197,160 |   |   | 233,169 |   |
| Deferred income taxes (Note 10)                                                                                         |     | 108,496 |   |   | 112,234 |   |
| Commitments and contingencies (Note 12)                                                                                 |     |   |   |   |   |   |
| Redeemable noncontrolling interest (Note 9)                                                                             |     | -- |   |   | 15,415 |   |
| Stockholders’ equity:                                                                                             |     |   |   |   |   |   |
| Preferred stock, $0.01 par value, 25,000,000 shares authorized, no shares issued and outstanding                        |     | -- |   |   | -- |   |
| Common stock, $0.01 par value, 100,000,000 shares authorized, and 40,173,891 and 40,049,988 shares issued, respectively |     | 401 |   |   | 400 |   |
| Additional paid-in capital                                                                                              |     | 563,816 |   |   | 555,728 |   |
| Retained earnings                                                                                                       |     | 387,380 |   |   | 356,995 |   |
| Treasury stock, at cost; 4,264,804 and 3,878,535 shares, respectively (Note 15)                                         |     | (162,827 | ) |   | (147,828 | ) |
| Total Vail Resorts, Inc. stockholders’ equity                                                                     |     | 788,770 |   |   | 765,295 |   |
|       Noncontrolling interests                                                            |     | 13,617 |   |   | 15,411 |   |
|       Total stockholders’ equity                                                    |     | 802,387 |   |   | 780,706 |   |
| Total liabilities and stockholders’ equity                                                                        | $        | 1,922,809 |   | $ | 1,884,480 |   |

|                                                                                           |   | Year ended July 31, |
|------------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                           |   | 2010                | 2009 | 2008 |
| Net revenue:                                                                                   |   |                |   |   |   |   |   |   |   |   |
| Mountain                                                                                       |   | $                   | 638,495 |   | $ | 614,597 |   | $ | 685,533 |   |
| Lodging                                                                                        |   |                | 169,130 |   |   | 176,241 |   |   | 170,057 |   |
| Real estate                                                                                    |   |                | 61,007 |   |   | 186,150 |   |   | 296,566 |   |
| Total net revenue                                                                              |   |                | 868,632 |   |   | 976,988 |   |   | 1,152,156 |   |
| Segment operating expense (exclusive of depreciation and amortization shown separately below): |   |                |   |   |   |   |   |   |   |   |
| Mountain                                                                                       |   |                | 456,017 |   |   | 451,025 |   |   | 470,362 |   |
| Lodging                                                                                        |   |                | 166,738 |   |   | 169,482 |   |   | 159,832 |   |
| Real estate                                                                                    |   |                | 71,402 |   |   | 142,070 |   |   | 251,338 |   |
| Total segment operating expense                                                                |   |                | 694,157 |   |   | 762,577 |   |   | 881,532 |   |
| Other operating income (expense):                                                              |   |                |   |   |   |   |   |   |   |   |
| Gain on sale of real property                                                                  |   |                | 6,087 |   |   | -- |   |   | 709 |   |
| Depreciation and amortization                                                                  |   |                | (110,638 | ) |   | (107,213 | ) |   | (93,794 | ) |
| Loss on disposal of fixed assets, net                                                          |   |                | (615 | ) |   | (1,064 | ) |   | (1,534 | ) |
| Income from operations                                                                         |   |                | 69,309 |   |   | 106,134 |   |   | 176,005 |   |
| Mountain equity investment income, net                                                         |   |                | 1,558 |   |   | 817 |   |   | 5,390 |   |
| Investment income, net                                                                         |   |                | 445 |   |   | 1,793 |   |   | 8,285 |   |
| Interest expense, net                                                                          |   |                | (17,515 | ) |   | (27,548 | ) |   | (30,667 | ) |
| Contract dispute credit, net (Note 12)                                                         |   |                | -- |   |   | -- |   |   | 11,920 |   |
| Income before provision for income taxes                                                       |   |                | 53,797 |   |   | 81,196 |   |   | 170,933 |   |
| Provision for income taxes (Note 10)                                                           |   |                | (18,022 | ) |   | (30,644 | ) |   | (63,086 | ) |
| Net income                                                                                     |   | $                   | 35,775 |   | $ | 50,552 |   | $ | 107,847 |   |
| Net income attributable to noncontrolling interests                                            |   |                | (5,390 | ) |   | (1,602 | ) |   | (4,920 | ) |
| Net income attributable to Vail Resorts, Inc.                                                  |   | $                   | 30,385 |   | $ | 48,950 |   | $ | 102,927 |   |
|                                                                                           |   |                |   |   |   |   |   |   |   |   |
| Per share amounts (Note 3):                                                                    |   |                |   |   |   |   |   |   |   |   |
| Basic net income per share attributable to Vail Resorts, Inc.                                  |   | $                   | 0.84 |   | $ | 1.34 |   | $ | 2.67 |   |
| Diluted net income per share attributable to Vail Resorts, Inc.                                |   | $                   | 0.83 |   | $ | 1.33 |   | $ | 2.64 |   |

|                                                                          | Common Stock |   | Additional Paid in Capital |   |   | Retained Earnings |   |   | Treasury Stock |   |   | Total Vail Resorts, Inc. Stockholders’ Equity |   |   | Noncontrolling Interests |   | Total Stockholders’ Equity |    |
|-------------------------------------------------------------------------------|--------------|--------|----------------------------|--------|--------|-------------------|--------|--------|----------------|--------|--------|-----------------------------------------------------|--------|--------|--------------------------|--------|----------------------------------|---------|
|                                                                          | Shares       |   |                       | Amount |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| Balance, July 31, 2007                                                        | 39,747,976   |   |                       | 397    |   | 534,370           |   |   | 187,320        |   |   | (25,846                                             | )      |   | 696,241                  |   |                             | 8,560   |   | 704,801 |   |
| Net income                                                                    | --           |   |                       | --     |   | --                |   |   | 102,927        |   |   | --                                                  |   |   | 102,927                  |   |                             | 4,920   |   | 107,847 |   |
| Stock-based compensation                                                      |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 16)                                                                     | --           |   |                       | --     |   | 8,414             |   |   | --             |   |   | --                                                  |   |   | 8,414                    |   |                             | --      |   | 8,414 |   |
| Issuance of shares under share                                                |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans net of shares                                                     |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
|    withheld for taxes  (Note 16)                     | 178,520      |   |                       | 2      |   | 1,122             |   |   | --             |   |   | --                                                  |   |   | 1,124                    |   |                             | --      |   | 1,124 |   |
| Tax benefit from share                                                        |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans                                                                   | --           |   |                       | --     |   | 1,867             |   |   | --             |   |   | --                                                  |   |   | 1,867                    |   |                             | --      |   | 1,867 |   |
| Repurchases of common stock                                                   |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 15)                                                                     | --           |   |                       | --     |   | --                |   |   | --             |   |   | (99,615                                             | )      |   | (99,615                  | )      |                             | --      |   | (99,615 | ) |
| Adjustment to redemption value of redeemable noncontrolling interest (Note 9) | --           |   |                       | --     |   | --                |   |   | 5,678          |   |   | --                                                  |   |   | 5,678                    |   |                             | (1,917  | ) | 3,761 |   |
|   Noncontrolling interest  distributions, net             | --           |   |                       | --     |   | --                |   |   | --             |   |   | --                                                  |   |   | --                       |   |                             | (2,715  | ) | (2,715 | ) |
| Balance, July 31, 2008                                                        | 39,926,496   |   |                       | 399    |   | 545,773           |   |   | 295,925        |   |   | (125,461                                            | )      |   | 716,636                  |   |                             | 8,848   |   | 725,484 |   |
| Net income                                                                    | --           |   |                       | --     |   | --                |   |   | 48,950         |   |   | --                                                  |   |   | 48,950                   |   |                             | 1,602   |   | 50,552 |   |
| Stock-based compensation                                                      |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 16)                                                                     | --           |   |                       | --     |   | 10,741            |   |   | --             |   |   | --                                                  |   |   | 10,741                   |   |                             | --      |   | 10,741 |   |
| Issuance of shares under share                                                |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans net of shares                                                     |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
|    withheld for taxes  (Note 16)                     | 123,492      |   |                       | 1      |   | (550              | )      |   | --             |   |   | --                                                  |   |   | (549                     | )      |                             | --      |   | (549 | ) |
| Tax expense from share                                                        |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans                                                                   | --           |   |                       | --     |   | (236              | )      |   | --             |   |   | --                                                  |   |   | (236                     | )      |                             | --      |   | (236 | ) |
| Repurchases of common stock                                                   |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 15)                                                                     | --           |   |                       | --     |   | --                |   |   | --             |   |   | (22,367                                             | )      |   | (22,367                  | )      |                             | --      |   | (22,367 | ) |
| Adjustment to redemption value of redeemable noncontrolling interest (Note 9) | --           |   |                       | --     |   | --                |   |   | 12,120         |   |   | --                                                  |   |   | 12,120                   |   |                             | 5,652   |   | 17,772 |   |
|    Noncontrolling interest   distributions, net | --           |   |                       | --     |   | --                |   |   | --             |   |   | --                                                  |   |   | --                       |   |                             | (691    | ) | (691 | ) |
| Balance, July 31, 2009                                                        | 40,049,988   |   |                       | 400    |   | 555,728           |   |   | 356,995        |   |   | (147,828                                            | )      |   | 765,295                  |   |                             | 15,411  |   | 780,706 |   |
| Net income                                                                    | --           |   |                       | --     |   | --                |   |   | 30,385         |   |   | --                                                  |   |   | 30,385                   |   |                             | 5,390   |   | 35,775 |   |
| Stock-based compensation                                                      |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 16)                                                                     | --           |   |                       | --     |   | 11,843            |   |   | --             |   |   | --                                                  |   |   | 11,843                   |   |                             | --      |   | 11,843 |   |
| Issuance of shares under share                                                |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans net of shares                                                     |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
|    withheld for taxes  (Note 16)                     | 123,903      |   |                       | 1      |   | (1,139            | )      |   | --             |   |   | --                                                  |   |   | (1,138                   | )      |                             | --      |   | (1,138 | ) |
| Tax expense from share                                                        |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| award plans                                                                   | --           |   |                       | --     |   | (40               | )      |   | --             |   |   | --                                                  |   |   | (40                      | )      |                             | --      |   | (40 | ) |
| Repurchases of common stock                                                   |         |   |                       |   |   |              |   |   |           |   |   |                                                |   |   |                     |   |                             |    |   |   |   |
| (Note 15)                                                                     | --           |   |                       | --     |   | --                |   |   | --             |   |   | (14,999                                             | )      |   | (14,999                  | )      |                             | --      |   | (14,999 | ) |
| Adjustment to redemption value of redeemable noncontrolling interest (Note 9) | --           |   |                       | --     |   | --                |   |   | --             |   |   | --                                                  |   |   | --                       |   |                             | (10,338 | ) | (10,338 | ) |
|    Noncontrolling interest   contributions, net | --           |   |                       | --     |   | --                |   |   | --             |   |   | --                                                  |   |   | --                       |   |                             | 3,268   |   | 3,268 |   |
| Acquisition of noncontrolling interest, net of deferred taxes (Note 9)        | --           |   |                       | --     |   | (2,576            | )      |   | --             |   |   | --                                                  |   |   | (2,576                   | )      |                             | (114    | ) | (2,690 | ) |
| Balance, July 31, 2010                                                        | 40,173,891   |   |                       | 401    |   | 563,816           |   |   | 387,380        |   |   | (162,827                                            | )      |   | 788,770                  |   |                             | 13,617  |   | 802,387 |   |

|                                                                              |   | Year Ended July 31, |
|-----------------------------------------------------------------------------------|--------|---------------------|
|                                                                              |   | 2010                |   | 2009 |   | 2008 |
| Cash flows from operating activities:                                             |   |                |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                        |   | $                   | 35,775 |   |   | $ | 50,552 |   |   | $ | 107,847 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                | 110,638 |   |   |   | 107,213 |   |   |   | 93,794 |   |
| Cost of real estate sales                                                         |   |                | 42,821 |   |   |   | 103,893 |   |   |   | 208,820 |   |
| Stock-based compensation expense                                                  |   |                | 11,843 |   |   |   | 10,741 |   |   |   | 8,414 |   |
| Deferred income taxes, net                                                        |   |                | (4,427 | ) |   |   | 30,767 |   |   |   | 2,980 |   |
| Gain on sale of real property                                                     |   |                | (6,087 | ) |   |   | -- |   |   |   | -- |   |
| Other non-cash income, net                                                        |   |                | (7,533 | ) |   |   | (5,300 | ) |   |   | (7,268 | ) |
| Changes in assets and liabilities:                                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Restricted cash                                                                   |   |                | (769 | ) |   |   | 47,372 |   |   |   | (3,688 | ) |
| Accounts receivable, net                                                          |   |                | 5,687 |   |   |   | (7,833 | ) |   |   | (12,173 | ) |
| Inventories, net                                                                  |   |                | 652 |   |   |   | 761 |   |   |   | (1,643 | ) |
| Investments in real estate                                                        |   |                | (166,446 | ) |   |   | (161,608 | ) |   |   | (217,482 | ) |
| Accounts payable and accrued liabilities                                          |   |                | (12,547 | ) |   |   | (19,568 | ) |   |   | 5,946 |   |
| Income taxes payable                                                              |   |                | 26,625 |   |   |   | (27,297 | ) |   |   | 20,033 |   |
| Deferred real estate deposits                                                     |   |                | (11,573 | ) |   |   | (46,011 | ) |   |   | (2,308 | ) |
| Private club deferred initiation fees and deposits                                |   |                | 2,399 |   |   |   | 41,591 |   |   |   | 15,867 |   |
| Other assets and liabilities, net                                                 |   |                | 8,892 |   |   |   | 9,003 |   |   |   | (2,143 | ) |
| Net cash provided by operating activities                                         |   |                | 35,950 |   |   |   | 134,276 |   |   |   | 216,996 |   |
| Cash flows from investing activities:                                             |   |                |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                              |   |                | (68,957 | ) |   |   | (106,491 | ) |   |   | (150,892 | ) |
| Acquisition of businesses                                                         |   |                | (15,870 | ) |   |   | (38,170 | ) |   |   | -- |   |
| Cash received from sale of real property                                          |   |                | 8,920 |   |   |   | -- |   |   |   | -- |   |
| Other investing activities, net                                                   |   |                | (7,645 | ) |   |   | 36 |   |   |   | 2,757 |   |
| Net cash used in investing activities                                             |   |                | (83,552 | ) |   |   | (144,625 | ) |   |   | (148,135 | ) |
| Cash flows from financing activities:                                             |   |                |   |   |   |   |   |   |   |   |   |   |
| Acquisition of noncontrolling interest                                            |   |                | (31,000 | ) |   |   | -- |   |   |   | -- |   |
| Repurchases of common stock                                                       |   |                | (14,999 | ) |   |   | (22,367 | ) |   |   | (99,615 | ) |
| Proceeds from borrowings under non-recourse real estate financings                |   |                | -- |   |   |   | 9,013 |   |   |   | 136,519 |   |
| Payments of non-recourse real estate financings                                   |   |                | -- |   |   |   | (58,407 | ) |   |   | (174,008 | ) |
| Proceeds from borrowings under other long-term debt                               |   |                | 140,962 |   |   |   | 67,280 |   |   |   | 77,641 |   |
| Payments of other long-term debt                                                  |   |                | (106,309 | ) |   |   | (82,632 | ) |   |   | (78,121 | ) |
| Other financing activities, net                                                   |   |                | 4,395 |   |   |   | 4,415 |   |   |   | 249 |   |
| Net cash used in financing activities                                             |   |                | (6,951 | ) |   |   | (82,698 | ) |   |   | (137,335 | ) |
| Net decrease in cash and cash equivalents                                         |   |                | (54,553 | ) |   |   | (93,047 | ) |   |   | (68,474) |   |
|  Cash and cash equivalents:                                                  |   |                |   |   |   |   |   |   |   |   |   |   |
| Beginning of period                                                               |   |                | 69,298 |   |   |   | 162,345 |   |   |   | 230,819 |   |
| End of period                                                                     |   | $                   | 14,745 |   |   | $ | 69,298 |   |   | $ | 162,345 |   |
|                                                                              |   |                |   |   |   |   |   |   |   |   |   |   |
| Cash paid for interest, net of amounts capitalized                                |   | $                   | 14,968 |   |   | $ | 25,556 |   |   | $ | 34,298 |   |
| Taxes (refunded) paid, net                                                        |   | $                   | (4,694 | ) |   | $ | 25,545 |   |   | $ | 35,483 |   |

|                                | Estimated Life |
|-------------------------------------|----------------|
|                                | in Years       |
| Land improvements                   | 10-35          |
| Buildings and building improvements | 7-30           |
| Machinery and equipment             | 2-30           |
| Furniture and fixtures              | 3-10           |
| Software                            | 3              |
| Vehicles                            | 3-4            |

|                         |   | July 31, 2010 |    | July 31, 2009 |
|------------------------------|--------|---------------|---------|---------------|
|                         |   | Carrying      |    | Fair          |   | Carrying |   | Fair |
|                         |   | Value         |    | Value         |   | Value |   | Value |
| 6.75% Notes                  |   | $             | 390,000 |          | $ | 394,875 |   | $ | 390,000 |   | $ | 374,400 |
| Industrial Development Bonds |   | $             | 42,700  |          | $ | 48,756 |   | $ | 42,700 |   | $ | 43,702 |
| Other long-term debt         |   | $             | 6,436   |          | $ | 6,342 |   | $ | 6,685 |   | $ | 6,651 |

|                                     |   | Year Ended July 31, |
|------------------------------------------|--------|---------------------|
|                                     |   | 2010                | 2009 |   | 2008 |
| Mountain operating expense               |   | $                   | 5,332 |   | $ | 4,834 |   |   | $ | 3,834 |   |
| Lodging operating expense                |   |                | 2,010 |   |   | 1,778 |   |   |   | 1,294 |   |
| Real estate operating expense            |   |                | 4,501 |   |   | 4,129 |   |   |   | 3,136 |   |
| Pre-tax stock-based compensation expense |   |                | 11,843 |   |   | 10,741 |   |   |   | 8,264 |   |
| Less: benefit for income taxes           |   |                | 4,481 |   |   | 4,071 |   |   |   | 3,134 |   |
| Net stock-based compensation expense     |   | $                   | 7,362 |   | $ | 6,670 |   |   | $ | 5,130 |   |

|                                                    |   | Year Ended July 31, |
|---------------------------------------------------------|--------|---------------------|
|                                                    |   | 2010                |   | 2009 |   | 2008 |
|                                                    |   | Basic               |   | Diluted |   | Basic |   | Diluted |   | Basic |   | Diluted |
| Net income per share:                                   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to Vail Resorts, Inc.           |   | $                   | 30,385 |   |   | $ | 30,385 |   |   | $ | 48,950 |   |   | $ | 48,950 |   |   | $ | 102,927 |   |   | $ | 102,927 |   |
|                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average shares outstanding                     |   |                | 36,212 |   |   |   | 36,212 |   |   |   | 36,546 |   |   |   | 36,546 |   |   |   | 38,616 |   |   |   | 38,616 |   |
| Effect of dilutive securities                           |   |                | -- |   |   |   | 519 |   |   |   | -- |   |   |   | 127 |   |   |   | -- |   |   |   | 318 |   |
| Total shares                                            |   |                | 36,212 |   |   |   | 36,731 |   |   |   | 36,546 |   |   |   | 36,673 |   |   |   | 38,616 |   |   |   | 38,934 |   |
| Net income per share attributable to Vail Resorts, Inc. |   | $                   | 0.84 |   |   | $ | 0.83 |   |   | $ | 1.34 |   |   | $ | 1.33 |   |   | $ | 2.67 |   |   | $ | 2.64 |   |

|                                    | Fiscal Year  |   |   | July 31, |   |   | July 31, |
|-----------------------------------------|--------------|--------|--------|----------|--------|--------|----------|
|                                    | Maturity (h) |   |   | 2010     |   |   | 2009     |
| Credit Facility Revolver (a)            | 2012         |   | $      | 35,000   |   | $      | --       |
| SSV Facility (b)                        | --           |   |   | --       |   |   | --       |
| Industrial Development Bonds (c)        | 2011-2020    |   |   | 42,700   |   |   | 42,700   |
| Employee Housing Bonds (d)              | 2027-2039    |   |   | 52,575   |   |   | 52,575   |
| 6.75% Senior Subordinated Notes (e)     | 2014         |   |   | 390,000  |   |   | 390,000  |
| Other (f)                               | 2011-2029    |   |   | 6,436    |   |   | 6,685    |
| Total debt                              |         |   |   | 526,711  |   |   | 491,960  |
| Less:  Current maturities (g) |         |   |   | 1,869    |   |   | 352      |
| Long-term debt                          |         |   | $      | 524,842  |   | $      | 491,608  |

| (a)   | On March 20, 2008, The Vail Corporation (“Vail Corp.”), a wholly-owned subsidiary of the Company, exercised the accordion feature under the revolver component of its senior credit facility (the “Credit Facility”) as provided in the existing Fourth Amended and Restated Credit Agreement, dated as of January 28, 2005, as amended, between The Vail Corp., Bank of America, N.A. as administrative agent and the Lenders party thereto (the “Credit Agreement”) governing the Company’s Credit Facility and the Indenture, dated as of January 29, 2004 among the Company, the guarantors therein and The Bank of New York Mellon Trust Company, N.A. as Trustee (“Indenture”), governing the 6.75% Senior Subordinated Notes due 2014 (“6.75% Notes”), which expanded the borrowing capacity from $300.0 million to $400.0 million at the same terms existing in the Credit Agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | As result of the Company’s acquisition of the remaining noncontrolling interest in SSV on April 30, 2010 (see Note 9, Redeemable Noncontrolling Interest) and the ensuing designation of SSV as a restricted subsidiary under its senior credit facility, the Amended and Restated Revolving Credit and Security Agreement dated as of September 23, 2005 (“SSV Facility”), by and between SSI Venture LLC and U.S. Bank National Association was terminated on April 29, 2010. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The Company has outstanding $42.7 million of industrial development bonds (collectively, the “Industrial Development Bonds”), of which $41.2 million were issued by Eagle County, Colorado (the “Eagle County Bonds”) and mature, subject to prior redemption, on August 1, 2019.  These bonds accrue interest at 6.95% per annum, with interest being payable semi-annually on February 1 and August 1.  The promissory note with respect to the Eagle County Bonds between Eagle County and the Company is collateralized by the Forest Service permits for Vail and Beaver Creek.  The Series 1991 Sports Facilities Refunding Revenue Bonds, issued by Summit County, Colorado, have an aggregate outstanding principal amount of $1.5 million maturing on September 1, 2010 and bear interest at 7.375%.  The promissory note with respect to the Summit County Bonds between Summit County and the Company is pledged and endorsed to the Bank of New York Mellon as Trustee under the Indenture of Trust underlying the Summit County Bonds.  The promissory note is also collateralized in accordance with a guaranty from Ralston Purina Company (subsequently assumed by Vail Corp. to the Trustee for the benefit of the registered owners of the bonds). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Company has recorded for financial reporting purposes the outstanding debt of four Employee Housing Entities (each an “Employee Housing Entity” and collectively the “Employee Housing Entities”): Breckenridge Terrace, Tarnes, BC Housing and Tenderfoot.  The proceeds of the Employee Housing Bonds were used to develop apartment complexes designated primarily for use by the Company's seasonal employees at its mountain resorts.  The Employee Housing Bonds are variable rate, interest-only instruments with interest rates tied to LIBOR plus 0% to 0.05% (0.31% to 0.36% as of July 31, 2010).  Interest on the Employee Housing Bonds is paid monthly in arrears and the interest rate is adjusted weekly.  No principal payments are due on the Employee Housing Bonds until maturity.  Each Employee Housing Entity’s bonds were issued in two series.  The bonds for each Employee Housing Entity are backed by letters of credit issued under the Credit Facility.  The table below presents the principal amounts outstanding for the Employee Housing Bonds as of July 31, 2010 (in thousands): |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 | Maturity (h) |   |   | Tranche A |   |   | Tranche B |   |   | Total  |
|----------------------|--------------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|
| Breckenridge Terrace | 2039         |   | $      | 14,980    |   | $      | 5,000     |   | $      | 19,980 |
| Tarnes               | 2039         |   |   | 8,000     |   |   | 2,410     |   |   | 10,410 |
| BC Housing           | 2027         |   |   | 9,100     |   |   | 1,500     |   |   | 10,600 |
| Tenderfoot           | 2035         |   |   | 5,700     |   |   | 5,885     |   |   | 11,585 |
| Total                |         |   | $      | 37,780    |   | $      | 14,795    |   | $      | 52,575 |

| (e) | The Company has outstanding $390.0 million of 6.75% Notes issued in January 2004.  The 6.75% Notes have a fixed annual interest rate of 6.75% with interest due semi-annually on February 15 and August 15.  No principal payments are due to be paid until maturity.  The Company has certain early redemption options under the terms of the 6.75% Notes.  The premium for early redemption of the 6.75% Notes ranges from 0% to 2.25% as of July 31, 2010, depending on the date of redemption.  The 6.75% Notes are subordinated to certain of the Company's debts, including the Credit Facility.  The Company's payment obligations under the 6.75% Notes are jointly and severally guaranteed by substantially all of the Company's current and future domestic subsidiaries (see Note 18, Guarantor Subsidiaries and Non-Guarantor Subsidiaries).  The Indenture governing the 6.75% Notes contains restrictive covenants which, among other things, limit the ability of the Company and its Restricted Subsidiaries (as defined in the Indenture) to (i) borrow money or sell preferred stock, (ii) create liens, (iii) pay dividends on or redeem or repurchase stock, (iv) make certain types of investments, (v) sell stock in the Restricted Subsidiaries, (vi) create restrictions on the ability of the Restricted Subsidiaries to pay dividends or make other payments to the Company, (vii) enter into transactions with affiliates, (viii) issue guarantees of debt and (ix) sell assets or merge with other companies. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | Other obligations primarily consist of a $6.0 million note outstanding to the Colorado Water Conservation Board, which mature on September 16, 2028, and capital leases totaling $0.4 million.  Other obligations, including the Colorado Water Conservation Board note and the capital leases, bear interest at rates ranging from 3.5% to 6.0% and have maturities ranging from in the year ending July 31, 2011 to the year ending July 31, 2029. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Current maturities represent principal payments due in the next 12 months. |
|-----|----------------------------------------------------------------------------|

| (h) | Maturities are based on the Company's July 31 fiscal year end. |
|-----|----------------------------------------------------------------|

|       |   | Total   |
|------------|--------|---------|
| 2011       | $      | 1,869   |
| 2012       |   | 35,341  |
| 2013       |   | 345     |
| 2014       |   | 390,219 |
| 2015       |   | 231     |
| Thereafter |   | 98,706  |
| Total debt | $      | 526,711 |

|                                                        |   | July 31, |
|-------------------------------------------------------------|--------|----------|
|                                                        |   | 2010     |   | 2009 |
| Land and land improvements                                  |   | $        | 270,382 |   |   | $ | 262,255 |   |
| Buildings and building improvements                         |   |     | 769,382 |   |   |   | 734,576 |   |
| Machinery and equipment                                     |   |     | 512,144 |   |   |   | 498,912 |   |
| Furniture and fixtures                                      |   |     | 198,566 |   |   |   | 187,316 |   |
| Software                                                    |   |     | 56,498 |   |   |   | 44,584 |   |
| Vehicles                                                    |   |     | 35,447 |   |   |   | 33,991 |   |
| Construction in progress                                    |   |     | 31,197 |   |   |   | 40,724 |   |
|     Gross property, plant and equipment |   |     | 1,873,616 |   |   |   | 1,802,358 |   |
| Accumulated depreciation                                    |   |     | (846,226 | ) |   |   | (744,700 | ) |
|     Property, plant and equipment, net  |   | $        | 1,027,390 |   |   | $ | 1,057,658 |   |

|                                     |   | July 31, |
|------------------------------------------|--------|----------|
|                                     |   |     | 2010 |   |   |   | 2009 |   |
| Indefinite lived intangible assets       |   |     |   |   |   |   |   |   |
| Trademarks                               |   | $        | 67,183 |   |   | $ | 66,013 |   |
| Water rights                             |   |     | 18,285 |   |   |   | 10,684 |   |
| Excess reorganization value              |   |     | 14,145 |   |   |   | 14,145 |   |
| Other intangible assets                  |   |     | 6,225 |   |   |   | 6,200 |   |
| Gross indefinite-lived intangible assets |   |     | 105,838 |   |   |   | 97,042 |   |
| Accumulated amortization                 |   |     | (24,713 | ) |   |   | (24,713 | ) |
| Indefinite-lived intangible assets, net  |   |     | 81,125 |   |   |   | 72,329 |   |
|                                     |   |     |   |   |   |   |   |   |
| Goodwill                                 |   |     |   |   |   |   |   |   |
| Goodwill                                 |   |     | 198,439 |   |   |   | 185,304 |   |
| Accumulated amortization                 |   |     | (17,354 | ) |   |   | (17,354 | ) |
| Goodwill, net                            |   |     | 181,085 |   |   |   | 167,950 |   |
|                                     |   |     |   |   |   |   |   |   |
| Amortizable intangible assets            |   |     |   |   |   |   |   |   |
| Customer lists                           |   |     | 19,414 |   |   |   | 19,414 |   |
| Property management contracts            |   |     | 4,412 |   |   |   | 4,412 |   |
| Forest Service permits                   |   |     | 5,902 |   |   |   | 5,902 |   |
| Other intangible assets                  |   |     | 18,598 |   |   |   | 16,759 |   |
| Gross amortizable intangible assets      |   |     | 48,326 |   |   |   | 46,487 |   |
| Accumulated amortization                 |   |     |   |   |   |   |   |   |
| Customer lists                           |   |     | (18,094 | ) |   |   | (17,934 | ) |
| Property management contracts            |   |     | (3,892 | ) |   |   | (3,809 | ) |
| Forest Service permits                   |   |     | (2,522 | ) |   |   | (2,348 | ) |
| Other intangible assets                  |   |     | (15,670 | ) |   |   | (15,296 | ) |
| Accumulated amortization                 |   |     | (40,178 | ) |   |   | (39,387 | ) |
| Amortizable intangible assets, net       |   |     | 8,148 |   |   |   | 7,100 |   |
|                                     |   |     |   |   |   |   |   |   |
| Total gross intangible assets            |   |     | 352,603 |   |   |   | 328,833 |   |
| Total accumulated amortization           |   |     | (82,245 | ) |   |   | (81,454 | ) |
| Total intangible assets, net             |   | $        | 270,358 |   |   | $ | 247,379 |   |

|                     |   |   | Mountain |   |   | Lodging |   |   | Goodwill, net |
|--------------------------|--------|--------|----------|--------|--------|---------|--------|--------|---------------|
| Balance at July 31, 2008 |   | $      | 107,722  |   | $      | 34,560  |   | $      | 142,282       |
| Acquisition              |   |   | --       |   |   | 25,668  |   |   | 25,668        |
| Balance at July 31, 2009 |   |   | 107,722  |   |   | 60,228  |   |   | 167,950       |
| Acquisitions             |   |   | 12,893   |   |   | 242     |   |   | 13,135        |
| Balance at July 31, 2010 |   | $      | 120,615  |   | $      | 60,470  |   | $      | 181,085       |

|                                                   |   | July 31, |
|--------------------------------------------------------|--------|----------|
|                                                   |   | 2010     | 2009 |
| Trade payables                                         |   | $        | 47,554 |   | $ | 42,530 |
| Real estate development payables                       |   |     | 31,203 |   |   | 45,681 |
| Deferred revenue                                       |   |     | 53,298 |   |   | 57,171 |
| Deferred real estate and other deposits                |   |     | 42,891 |   |   | 21,637 |
| Accrued salaries, wages and deferred compensation      |   |     | 21,425 |   |   | 15,202 |
| Accrued benefits                                       |   |     | 23,547 |   |   | 23,496 |
| Accrued interest                                       |   |     | 13,939 |   |   | 14,002 |
| Liability to complete real estate projects, short term |   |     | 1,909 |   |   | 3,972 |
| Other accruals                                         |   |     | 19,560 |   |   | 21,845 |
| Total accounts payable and accrued liabilities         |   | $        | 255,326 |   | $ | 245,536 |

|                                                      |   | July 31, |
|-----------------------------------------------------------|--------|----------|
|                                                      |   | 2010     | 2009 |
| Private club deferred initiation fee revenue and deposits |   | $        | 148,184 |   | $ | 153,265 |
| Deferred real estate deposits                             |   |     | -- |   |   | 32,792 |
| Other long-term liabilities                               |   |     | 48,976 |   |   | 47,112 |
| Total other long-term liabilities                         |   | $        | 197,160 |   | $ | 233,169 |

| Equity Method Affiliates                                                              |   | OwnershipInterest |
|---------------------------------------------------------------------------------------|--------|-------------------|
| Slifer, Smith, and Frampton/Vail Associates Real Estate, LLC (“SSF/VARE”) |   | 50                | % |
| KRED                                                                                  |   | 50                | % |
| Clinton Ditch and Reservoir Company                                                   |   | 43                | % |

|                     |    | Fair Value Measurement as of July 31, 2010                                                                                                                |
|--------------------------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| ($ in thousands)         |    |                                                                                                                                                      |   |   |   |   |   |   |
|                     |    | Balance at July                                                                                                                                           |   |   |   |   |   |   |
| Description              |    | 31, 2010                                                                                                                                                  |   | Level 1 |   | Level 2 |   | Level 3 |
| Money Market             |  $ |                          399 |  $ |                       399 |  $ |                       -- |  $ |                        -- |
| US Treasury Notes        |  $ |                        8,297           |   | 8,297 |   | -- |   | -- |
| Certification of Deposit |  $ |                         300       |   | -- |   | 300 |   | -- |
|                     |    |                                                                                                                                                      |
|                     |    | Fair Value Measurement as of July 31, 2009                                                                                                                |
| ($ in thousands)         |    |                                                                                                                                                      |   |   |   |   |   |   |
|                     |    | Balance at July                                                                                                                                           |   |   |   |   |   |   |
| Description              |    | 31, 2009                                                                                                                                                  |   | Level 1 |   | Level 2 |   | Level 3 |
| Money Market             |  $ |                     47,915                            |  $ |                 47,915 |  $ |                      -- |  $ |                        -- |
| Certification of Deposit |  $ |                      13,300                      |   | -- |   | 13,300 |   | -- |

|                                                   |   | July 31, |
|--------------------------------------------------------|--------|----------|
|                                                   |   | 2010     |   | 2009 |
| Deferred income tax liabilities:                       |   |     |   |   |   |   |   |   |
| Fixed assets                                           |   | $        | 109,921 |   |   | $ | 108,417 |   |
| Intangible assets                                      |   |     | 31,825 |   |   |   | 27,878 |   |
| Real estate and other investments                      |   |     | -- |   |   |   | 944 |   |
| Other, net                                             |   |     | -- |   |   |   | 2,647 |   |
| Total                                                  |   |     | 141,746 |   |   |   | 139,886 |   |
| Deferred income tax assets:                            |   |     |   |   |   |   |   |   |
| Deferred membership revenue                            |   |     | 26,282 |   |   |   | 28,722 |   |
| Real estate and other investments                      |   |     | 5,041 |   |   |   | 652 |   |
| Deferred compensation and other accrued expenses       |   |     | 21,268 |   |   |   | 18,315 |   |
| Net operating loss carryforwards other tax credits     |   |     | 2,041 |   |   |   | 1,444 |   |
| Other, net                                             |   |     | 1,612 |   |   |   | 1,404 |   |
| Total                                                  |   |     | 56,244 |   |   |   | 50,537 |   |
| Valuation allowance for deferred income taxes          |   |     | (1,588 | ) |   |   | (1,588 | ) |
| Deferred income tax assets, net of valuation allowance |   |     | 54,656 |   |   |   | 48,949 |   |
| Net deferred income tax liability                      |   | $        | 87,090 |   |   | $ | 90,937 |   |

|                                          |   | July 31, |
|-----------------------------------------------|--------|----------|
|                                          |   | 2010     |   | 2009 |
| Net current deferred income tax asset         |   | $        | 21,406 |   | $ | 21,297 |   |
| Net non-current deferred income tax liability |   |     | 108,496 |   |   | 112,234 |   |
| Net deferred income tax liability             |   | $        | 87,090 |   | $ | 90,937 |   |

|                       |   | Year Ended July 31, |
|----------------------------|--------|---------------------|
|                       |   | 2010                |   | 2009 |   | 2008 |
| Current:                   |   |                |   |   |   |   |   |   |   |   |   |   |
| Federal                    |   | $                   | 19,661 |   |   | $ | (242) |   |   | $ | 50,169 |   |
| State                      |   |                | 2,788 |   |   |   | 119 |   |   |   | 6,710 |   |
| Total current              |   |                | 22,449 |   |   |   | (123) |   |   |   | 56,879 |   |
| Deferred:                  |   |                |   |   |   |   |   |   |   |   |   |   |
| Federal                    |   |                | (3,989 | ) |   |   | 27,358 |   |   |   | 5,533 |   |
| State                      |   |                | (438 | ) |   |   | 3,409 |   |   |   | 674 |   |
| Total deferred             |   |                | (4,427 | ) |   |   | 30,767 |   |   |   | 6,207 |   |
| Provision for income taxes |   | $                   | 18,022 |   |   | $ | 30,644 |   |   | $ | 63,086 |   |

|                                     |   | Year Ended July 31, |
|------------------------------------------|--------|---------------------|
|                                     |   | 2010                | 2009 |   | 2008 |
| At U.S. Federal income tax rate          |   | 35.0                |   | % | 35.0 |   | % |   | 35.0 |   | % |
| State income tax, net of Federal benefit |   | 2.8                 |   | % | 2.8 |   | % |   | 2.8 |   | % |
| Nondeductible meals or entertainment     |   | 0.3                 |   | % | 0.2 |   | % |   | 0.1 |   | % |
| Noncontrolling interest                  |   | (3.5                | ) | % | (0.7 | ) | % |   | (1.0 | ) | % |
| General business credits                 |   | (1.1                | ) | % | (0.8 | ) | % |   | (0.4 | ) | % |
| Other                                    |   | --                  |   | % | 1.2 |   | % |   | 0.4 |   | % |
|                                     |   | 33.5                |   | % | 37.7 |   | % |   | 36.9 |   | % |

|                                                         |   | Unrecognized Tax Benefits |
|--------------------------------------------------------------|--------|---------------------------|
| Balance as of August 1, 2007                                 | $      | 12,257                    |   |
| Additions based on tax positions related to the current year |   | --                        |   |
| Additions for tax positions of prior years                   |   | 6,331                     |   |
| Reductions for tax positions of prior years                  |   | (237                      | ) |
| Settlements                                                  |   | (555                      | ) |
| Balance as of August 1, 2008                                 | $      | 17,796                    |   |
| Additions based on tax positions related to the current year |   | --                        |   |
| Additions for tax positions of prior years                   |   | 9,524                     |   |
| Reductions for tax positions of prior years                  |   | --                        |   |
| Settlements                                                  |   | --                        |   |
| Balance as of July 31, 2009                                  | $      | 27,320                    |   |
| Additions based on tax positions related to the current year |   | --                        |   |
| Additions for tax positions of prior years                   |   | --                        |   |
| Reductions for tax positions of prior years                  |   | --                        |   |
| Lapse of statue of limitations                               |   | (272                      | ) |
| Settlements                                                  |   | --                        |   |
| Balance as of July 31, 2010                                  | $      | 27,048                    |   |

| 2011       | $      | 17,471 |
|------------|--------|--------|
| 2012       |   | 13,660 |
| 2013       |   | 11,866 |
| 2014       |   | 10,263 |
| 2015       |   | 8,939  |
| Thereafter |   | 30,874 |
| Total      | $      | 93,073 |

|                                                                    |   | Year Ended July 31, |
|-------------------------------------------------------------------------|--------|---------------------|
|                                                                    |   | 2010                |   | 2009 |   | 2008 |
| Net revenue:                                                            |   |                |   |   |   |   |   |   |   |   |   |   |
| Lift tickets                                                            |   | $                   | 289,289 |   |   | $ | 276,542 |   |   | $ | 301,914 |   |
| Ski school                                                              |   |                | 70,694 |   |   |   | 65,336 |   |   |   | 81,384 |   |
| Dining                                                                  |   |                | 53,322 |   |   |   | 52,259 |   |   |   | 62,506 |   |
| Retail/rental                                                           |   |                | 154,846 |   |   |   | 147,415 |   |   |   | 168,765 |   |
| Other                                                                   |   |                | 70,344 |   |   |   | 73,045 |   |   |   | 70,964 |   |
| Total Mountain net revenue                                              |   |                | 638,495 |   |   |   | 614,597 |   |   |   | 685,533 |   |
| Lodging                                                                 |   |                | 169,130 |   |   |   | 176,241 |   |   |   | 170,057 |   |
| Resort                                                                  |   |                | 807,625 |   |   |   | 790,838 |   |   |   | 855,590 |   |
| Real estate                                                             |   |                | 61,007 |   |   |   | 186,150 |   |   |   | 296,566 |   |
| Total net revenue                                                       |   | $                   | 868,632 |   |   | $ | 976,988 |   |   | $ | 1,152,156 |   |
| Segment operating expense:                                              |   |                |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                                |   | $                   | 456,017 |   |   | $ | 451,025 |   |   | $ | 470,362 |   |
| Lodging                                                                 |   |                | 166,738 |   |   |   | 169,482 |   |   |   | 159,832 |   |
| Resort                                                                  |   |                | 622,755 |   |   |   | 620,507 |   |   |   | 630,194 |   |
| Real estate                                                             |   |                | 71,402 |   |   |   | 142,070 |   |   |   | 251,338 |   |
| Total segment operating expense                                         |   | $                   | 694,157 |   |   | $ | 762,577 |   |   | $ | 881,532 |   |
|                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Gain on sale of real property                                           |   | $                   | 6,087 |   |   | $ | -- |   |   | $ | 709 |   |
| Mountain equity investment income, net                                  |   | $                   | 1,558 |   |   | $ | 817 |   |   | $ | 5,390 |   |
|                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Reported EBITDA:                                                        |   |                |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                                |   | $                   | 184,036 |   |   | $ | 164,389 |   |   | $ | 220,561 |   |
| Lodging                                                                 |   |                | 2,392 |   |   |   | 6,759 |   |   |   | 10,225 |   |
| Resort                                                                  |   |                | 186,428 |   |   |   | 171,148 |   |   |   | 230,786 |   |
| Real estate                                                             |   |                | (4,308 | ) |   |   | 44,080 |   |   |   | 45,937 |   |
| Total Reported EBITDA                                                   |   | $                   | 182,120 |   |   | $ | 215,228 |   |   | $ | 276,723 |   |
|                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Real estate held for sale and investment                                |   | $                   | 422,164 |   |   | $ | 311,485 |   |   | $ | 249,305 |   |
|                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Reconciliation to net income attributable to Vail Resorts, Inc.:   |   |                |   |   |   |   |   |   |   |   |   |   |
| Total Reported EBITDA                                                   |   | $                   | 182,120 |   |   | $ | 215,228 |   |   | $ | 276,723 |   |
| Depreciation and amortization                                           |   |                | (110,638 | ) |   |   | (107,213 | ) |   |   | (93,794 | ) |
| Loss on disposal of fixed assets, net                                   |   |                | (615 | ) |   |   | (1,064 | ) |   |   | (1,534 | ) |
| Investment income, net                                                  |   |                | 445 |   |   |   | 1,793 |   |   |   | 8,285 |   |
| Interest expense, net                                                   |   |                | (17,515 | ) |   |   | (27,548  | ) |   |   | (30,667 | ) |
| Contract dispute credit, net                                            |   |                | --  |   |   |   |  -- |   |   |   |  11,920 |   |
| Income before provision for income taxes                                |   |                | 53,797 |   |   |   | 81,196 |   |   |   | 170,933 |   |
| Provision for income taxes                                              |   |                | (18,022 | ) |   |   | (30,644 | ) |   |   | (63,086 | ) |
| Net income                                                              |   |                | 35,775 |   |   |   | 50,552 |   |   |   | 107,847 |   |
| Net income attributable to noncontrolling interests                     |   |                | (5,390 | ) |   |   | (1,602 | ) |   |   | (4,920 | ) |
| Net income attributable to Vail Resorts, Inc.                           |   | $                   | 30,385 |   |   | $ | 48,950 |   |   | $ | 102,927 |   |

|                                                                                                            |   | 2010     |
|-----------------------------------------------------------------------------------------------------------------|--------|----------|
|                                                                                                            |   | Year     |   | Quarter |   | Quarter |   | Quarter |   | Quarter |
|                                                                                                            |   | Ended    |   | Ended |   | Ended |   | Ended |   | Ended |
|                                                                                                            |   | July 31, |   | July 31, |   | April 30, |   | January 31, |   | October 31, |
|                                                                                                            |   | 2010     |   | 2010 |   | 2010 |   | 2010 |   | 2009 |
| Mountain revenue                                                                                                |   | $        | 638,495 |   |   | $ | 36,100 |   |   | $ | 302,213 |   |   | $ | 260,978 |   |   | $ | 39,204 |   |
| Lodging revenue                                                                                                 |   |     | 169,130 |   |   |   | 44,222 |   |   |   | 44,877 |   |   |   | 38,676 |   |   |   | 41,355 |   |
| Real estate revenue                                                                                             |   |     | 61,007 |   |   |   | 56,768 |   |   |   | 3,164 |   |   |   | 870 |   |   |   | 205 |   |
| Total net revenue                                                                                               |   |     | 868,632 |   |   |   | 137,090 |   |   |   | 350,254 |   |   |   | 300,524 |   |   |   | 80,764 |   |
| Income (loss) from operations                                                                                   |   |     | 69,309 |   |   |   | (57,841 | ) |   |   | 118,323 |   |   |   | 73,541 |   |   |   | (64,714 | ) |
| Net income (loss)                                                                                               |   |     | 35,775 |   |   |   | (42,184 | ) |   |   | 76,391 |   |   |   | 45,079 |   |   |   | (43,511 | ) |
| Net income (loss) attributable to Vail Resorts, Inc.                                                            |   | $        | 30,385 |   |   | $ | (41,921 | ) |   | $ | 72,789 |   |   | $ | 40,690 |   |   | $ | (41,173 | ) |
| Basic net income (loss) per share attributable to      Vail Resorts, Inc.         |   | $        | 0.84 |   |   | $ | (1.16 | ) |   | $ | 2.01 |   |   | $ | 1.12 |   |   | $ | (1.14 | ) |
| Diluted net income (loss) per share      attributable to Vail Resorts, Inc.       |   | $        | 0.83 |   |   | $ | (1.16 | ) |   | $ | 1.98 |   |   | $ | 1.11 |   |   | $ | (1.14 | ) |
|                                                                                                            |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   | 2009     |
|                                                                                                            |   | Year     |   | Quarter |   | Quarter |   | Quarter |   | Quarter |
|                                                                                                            |   | Ended    |   | Ended |   | Ended |   | Ended |   | Ended |
|                                                                                                            |   | July 31, |   | July 31, |   | April 30, |   | January 31, |   | October 31, |
|                                                                                                            |   | 2009     |   | 2009 |   | 2009 |   | 2009 |   | 2008 |
| Mountain revenue                                                                                                |   | $        | 614,597 |   |   | $ | 36,150 |   |   | $ | 279,180 |   |   | $ | 258,489 |   |   | $ | 40,778 |   |
| Lodging revenue                                                                                                 |   |     | 176,241 |   |   |   | 44,942 |   |   |   | 44,896 |   |   |   | 41,150 |   |   |   | 45,253 |   |
| Real estate revenue                                                                                             |   |     | 186,150 |   |   |   | 20,836 |   |   |   | 9,407 |   |   |   | 89,157 |   |   |   | 66,750 |   |
| Total net revenue                                                                                               |   |     | 976,988 |   |   |   | 101,928 |   |   |   | 333,483 |   |   |   | 388,796 |   |   |   | 152,781 |   |
| Income (loss) from operations                                                                                   |   |     | 106,134 |   |   |   | (58,014 | ) |   |   | 107,580 |   |   |   | 106,543 |   |   |   | (49,975 | ) |
| Net income (loss)                                                                                               |   |     | 50,552 |   |   |   | (41,318 | ) |   |   | 64,392 |   |   |   | 64,333 |   |   |   | (36,855 | ) |
| Net income (loss) attributable to Vail Resorts, Inc.                                                            |   | $        | 48,950 |   |   | $ | (38,730 | ) |   | $ | 61,639 |   |   | $ | 60,545 |   |   | $ | (34,504 | ) |
| Basic net income (loss) per share attributable to       Vail Resorts, Inc.   |   | $        | 1.34 |   |   | $ | (1.07 | ) |   | $ | 1.69 |   |   | $ | 1.66 |   |   | $ | (0.93 | ) |
| Diluted net income (loss) per share attributable to       Vail Resorts, Inc. |   | $        | 1.33 |   |   | $ | (1.07 | ) |   | $ | 1.68 |   |   | $ | 1.65 |   |   | $ | (0.93 | ) |

|                             |   | Year Ended July 31, |
|----------------------------------|--------|---------------------|
|                             |   | 2010                |   | 2009 | 2008 |
| Expected volatility              |   | 43.3                | % |   | 37.1-41.0 | % | 36.6 | % |
| Expected dividends               |   | --                  | % |   | -- | % | -- | % |
| Expected term (average in years) |   | 4.7                 |   |   | 5.4-5.7 |   | 5.4 |   |
| Risk-free rate                   |   | 0.42-4.6            | % |   | 2.1-4.9 | % | 4.0-5.1 | % |

|                         |   |   |   |   | Weighted-Average |   | Weighted-Average |   | Aggregate |
|------------------------------|--------|--------|--------|--------|------------------|--------|------------------|--------|-----------|
|                         |   |   |   |   | Exercise         |   | Remaining        |   | Intrinsic |
|                         |   | Awards |   |   | Price            |   | Contractual Term |   | Value     |
| Outstanding at July 31, 2007 |   | 1,196  |   |   | $                | 27.55  |             |   |      |   |   |   |   |
| Granted                      |   | 221    |   |   |             | 59.56  |             |   |      |   |   |   |   |
| Exercised                    |   | (117   | )      |   |             | 20.40  |             |   |      |   |   |   |   |
| Forfeited or expired         |   | (81    | )      |   |             | 45.71  |             |   |      |   |   |   |   |
| Outstanding at July 31, 2008 |   | 1,219  |   |   | $                | 32.83  |             |   |      |   |   |   |   |
| Granted                      |   | 1,055  |   |   |             | 27.88  |             |   |      |   |   |   |   |
| Exercised                    |   | (31    | )      |   |             | 17.54  |             |   |      |   |   |   |   |
| Forfeited or expired         |   | (60    | )      |   |             | 38.97  |             |   |      |   |   |   |   |
| Outstanding at July 31, 2009 |   | 2,183  |   |   | $                | 30.49  |             |   |      |   |   |   |   |
| Granted                      |   | 377    |   |   |             | 35.86  |             |   |      |   |   |   |   |
| Exercised                    |   | (46    | )      |   |             | 23.60  |             |   |      |   |   |   |   |
| Forfeited or expired         |   | (137   | )      |   |             | 42.30  |             |   |      |   |   |   |   |
| Outstanding at July 31, 2010 |   | 2,377  |   |   | $                | 30.80  |             |   | 7.1 years |   | $ | 21,503 |   |
| Exercisable at July 31, 2010 |   | 1,149  |   |   | $                | 31.60  |             |   | 5.5 years |   | $ | 10,068 |   |

|                          |   |   |   | Weighted-Average |
|-------------------------------|--------|--------|--------|------------------|
|                          |   |   |   | Grant-Date       |
|                          |   | Awards |   | Fair Value       |
| Outstanding at August 1, 2009 |   | 1,184  |   | $                | 11.64 |   |
| Granted                       |   | 377    |   |             | 13.70 |   |
| Vested                        |   | (241   | )      |             | 15.64 |   |
| Forfeited                     |   | (92    | )      |             | 13.98 |   |
| Nonvested at July 31, 2010    |   | 1,228  |   | $                | 7.37 |   |

|                          |   |   |   | Weighted-Average |
|-------------------------------|--------|--------|--------|------------------|
|                          |   |   |   | Grant-Date       |
|                          |   | Awards |   | Fair Value       |
| Outstanding at August 1, 2009 |   | 423    |   | $                | 30.29 |   |
| Granted                       |   | 136    |   |             | 36.11 |   |
| Vested                        |   | (135   | )      |             | 36.71 |   |
| Forfeited                     |   | (53    | )      |             | 28.89 |   |
| Nonvested at July 31, 2010    |   | 371    |   | $                | 30.07 |   |

|                                                          |   |    |      |         |   | 100% Owned   |      |        |   |         |    |   |   |   |       |   |   |   |
|---------------------------------------------------------------|--------|---------|-----------|--------------|--------|--------------|-----------|-------------|--------|--------------|---------|--------|--------|--------|------------|--------|--------|--------|
|                                                          |   | Parent  |      | Guarantor    |   | Other        |      | Eliminating |   |         |    |   |
|                                                          |   | Company |      | Subsidiaries |   | Subsidiaries |      | Entries     |   | Consolidated |
| Current assets:                                               |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents                                     |   | $       | --        |         |   | $            | 11,315    |        |   | $            | 3,430   |   |   | $      | --         |   |   | $      | 14,745 |   |
| Restricted cash                                               |   |    | --        |         |   |         | 11,443    |        |   |         | 391     |   |   |   | --         |   |   |   | 11,834 |   |
| Trade receivables, net                                        |   |    | --        |         |   |         | 53,013    |        |   |         | 609     |   |   |   | --         |   |   |   | 53,622 |   |
| Inventories, net                                              |   |    | --        |         |   |         | 48,081    |        |   |         | 214     |   |   |   | --         |   |   |   | 48,295 |   |
| Other current assets                                          |   |    | 21,448    |         |   |         | 20,570    |        |   |         | 231     |   |   |   | --         |   |   |   | 42,249 |   |
| Total current assets                                          |   |    | 21,448    |         |   |         | 144,422   |        |   |         | 4,875   |   |   |   | --         |   |   |   | 170,745 |   |
| Property, plant and equipment, net                            |   |    | --        |         |   |         | 990,904   |        |   |         | 36,486  |   |   |   | --         |   |   |   | 1,027,390 |   |
| Real estate held for sale and investment                      |   |    | --        |         |   |         | 422,164   |        |   |         | --      |   |   |   | --         |   |   |   | 422,164 |   |
| Goodwill, net                                                 |   |    | --        |         |   |         | 181,085   |        |   |         | --      |   |   |   | --         |   |   |   | 181,085 |   |
| Intangible assets, net                                        |   |    | --        |         |   |         | 71,118    |        |   |         | 18,155  |   |   |   | --         |   |   |   | 89,273 |   |
| Other assets                                                  |   |    | 2,515     |         |   |         | 24,776    |        |   |         | 4,861   |   |   |   | --         |   |   |   | 32,152 |   |
| Investments in subsidiaries and advances to (from) parent     |   |    | 1,337,635 |         |   |         | 282,540   |        |   |         | (4,609  | )      |   |   | (1,615,566 | )      |   |   | -- |   |
| Total assets                                                  |   | $       | 1,361,598 |         |   | $            | 2,117,009 |        |   | $            | 59,768  |   |   | $      | (1,615,566 | )      |   | $      | 1,922,809 |   |
|                                                          |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Current liabilities:                                          |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Accounts payable and accrued liabilities                      |   | $       | 12,400    |         |   | $            | 240,823   |        |   | $            | 2,103   |   |   | $      | --         |   |   | $      | 255,326 |   |
| Income taxes payable                                          |   |    | 32,729    |         |   |         | --        |        |   |         | --      |   |   |   | --         |   |   |   | 32,729 |   |
| Long-term debt due within one year                            |   |    | --        |         |   |         | 1,682     |        |   |         | 187     |   |   |   | --         |   |   |   | 1,869 |   |
| Total current liabilities                                     |   |    | 45,129    |         |   |         | 242,505   |        |   |         | 2,290   |   |   |   | --         |   |   |   | 289,924 |   |
| Long-term debt                                                |   |    | 390,000   |         |   |         | 76,479    |        |   |         | 58,363  |   |   |   | --         |   |   |   | 524,842 |   |
| Other long-term liabilities                                   |   |    | 29,203    |         |   |         | 166,201   |        |   |         | 1,756   |   |   |   | --         |   |   |   | 197,160 |   |
| Deferred income taxes                                         |   |    | 108,496   |         |   |         | --        |        |   |         | --      |   |   |   | --         |   |   |   | 108,496 |   |
| Total Vail Resorts, Inc. stockholders’ equity (deficit) |   |    | 788,770   |         |   |         | 1,631,824 |        |   |         | (16,258 | )      |   |   | (1,615,566 | )      |   |   | 788,770 |   |
| Noncontrolling interests                                      |   |    | --        |         |   |         | --        |        |   |         | 13,617  |   |   |   | --         |   |   |   | 13,617 |   |
| Total stockholders’ equity (deficit)                    |   |    | 788,770   |         |   |         | 1,631,824 |        |   |         | (2,641  | )      |   |   | (1,615,566 | )      |   |   | 802,387 |   |
| Total liabilities and stockholders’ equity              |   | $       | 1,361,598 |         |   | $            | 2,117,009 |        |   | $            | 59,768  |   |   | $      | (1,615,566 | )      |   | $      | 1,922,809 |   |

|                                                                             |   |    |      |         |   | 100% Owned   |      |        |   |         |    |   |   |   |       |   |   |   |
|----------------------------------------------------------------------------------|--------|---------|-----------|--------------|--------|--------------|-----------|-------------|--------|--------------|---------|--------|--------|--------|------------|--------|--------|--------|
|                                                                             |   | Parent  |      | Guarantor    |   | Other        |      | Eliminating |   |         |    |   |
|                                                                             |   | Company |      | Subsidiaries |   | Subsidiaries |      | Entries     |   | Consolidated |
| Current assets:                                                                  |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents                                                        |   | $       | --        |         |   | $            | 66,685    |        |   | $            | 2,613   |   |   | $      | --         |   |   | $      | 69,298 |   |
| Restricted cash                                                                  |   |    | --        |         |   |         | 11,065    |        |   |         | --      |   |   |   | --         |   |   |   | 11,065 |   |
| Trade receivables, net                                                           |   |    | --        |         |   |         | 57,554    |        |   |         | 509     |   |   |   | --         |   |   |   | 58,063 |   |
| Inventories, net                                                                 |   |    | --        |         |   |         | 48,745    |        |   |         | 202     |   |   |   | --         |   |   |   | 48,947 |   |
| Other current assets                                                             |   |    | 21,333    |         |   |         | 20,062    |        |   |         | 220     |   |   |   | --         |   |   |   | 41,615 |   |
| Total current assets                                                             |   |    | 21,333    |         |   |         | 204,111   |        |   |         | 3,544   |   |   |   | --         |   |   |   | 228,988 |   |
| Property, plant and equipment, net                                               |   |    | --        |         |   |         | 1,018,539 |        |   |         | 39,119  |   |   |   | --         |   |   |   | 1,057,658 |   |
| Real estate held for sale and investment                                         |   |    | --        |         |   |         | 311,485   |        |   |         | --      |   |   |   | --         |   |   |   | 311,485 |   |
| Goodwill, net                                                                    |   |    | --        |         |   |         | 167,950   |        |   |         | --      |   |   |   | --         |   |   |   | 167,950 |   |
| Intangible assets, net                                                           |   |    | --        |         |   |         | 68,875    |        |   |         | 10,554  |   |   |   | --         |   |   |   | 79,429 |   |
| Other assets                                                                     |   |    | 3,226     |         |   |         | 30,710    |        |   |         | 5,034   |   |   |   | --         |   |   |   | 38,970 |   |
| Investments in subsidiaries and advances to (from) parent                        |   |    | 1,290,532 |         |   |         | 258,205   |        |   |         | (13,969 | )      |   |   | (1,534,768 | )      |   |   | -- |   |
| Total assets                                                                     |   | $       | 1,315,091 |         |   | $            | 2,059,875 |        |   | $            | 44,282  |   |   | $      | (1,534,768 | )      |   | $      | 1,884,480 |   |
|                                                                             |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Current liabilities:                                                             |   |    |      |         |   |         |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Accounts payable and accrued liabilities                                         |   | $       | 12,412    |         |   | $            | 231,532   |        |   | $            | 1,592   |   |   | $      | --         |   |   | $      | 245,536 |   |
| Income taxes payable                                                             |   |    | 5,460     |         |   |         | --        |        |   |         | --      |   |   |   | --         |   |   |   | 5,460 |   |
| Long-term debt due within one year                                               |   |    | --        |         |   |         | 175       |        |   |         | 177     |   |   |   | --         |   |   |   | 352 |   |
| Total current liabilities                                                        |   |    | 17,872    |         |   |         | 231,707   |        |   |         | 1,769   |   |   |   | --         |   |   |   | 251,348 |   |
| Long-term debt                                                                   |   |    | 390,000   |         |   |         | 43,058    |        |   |         | 58,550  |   |   |   | --         |   |   |   | 491,608 |   |
| Other long-term liabilities                                                      |   |    | 29,690    |         |   |         | 203,315   |        |   |         | 164     |   |   |   | --         |   |   |   | 233,169 |   |
| Deferred income taxes                                                            |   |    | 112,234   |         |   |         | --        |        |   |         | --      |   |   |   | --         |   |   |   | 112,234 |   |
| Redeemable noncontrolling interest                                               |   |    | --        |         |   |         | 15,415    |        |   |         | --      |   |   |   | --         |   |   |   | 15,415 |   |
|     Total Vail Resorts, Inc. stockholders’ equity (deficit) |   |    | 765,295   |         |   |         | 1,559,748 |        |   |         | (24,980 | )      |   |   | (1,534,768 | )      |   |   | 765,295 |   |
| Noncontrolling interests                                                         |   |    | --        |         |   |         | 6,632     |        |   |         | 8,779   |   |   |   | --         |   |   |   | 15,411 |   |
| Total stockholders’ equity (deficit)                                       |   |    | 765,295   |         |   |         | 1,566,380 |        |   |         | (16,201 | )      |   |   | (1,534,768 | )      |   |   | 780,706 |   |
| Total liabilities and stockholders’ equity                                 |   | $       | 1,315,091 |         |   | $            | 2,059,875 |        |   | $            | 44,282  |   |   | $      | (1,534,768 | )      |   | $      | 1,884,480 |   |

|                                                                          |   |    |    | 100% Owned   |   |         |    |        |   |         |
|-------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                          |   | Parent  |    | Guarantor    |   | Other        |    | Eliminating |   |         |
|                                                                          |   | Company |    | Subsidiaries |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total net revenue                                                             |   | $       | --      |         |   | $            | 868,238 |        |   | $            | 11,041 |   |   | $ | (10,647 | ) |   | $ | 868,632 |   |
| Total operating expense                                                       |   |    | 792     |         |   |         | 795,147 |        |   |         | 13,879 |   |   |   | (10,495 | ) |   |   | 799,323 |   |
| (Loss) income from operations                                                 |   |    | (792    | )            |   |         | 73,091  |        |   |         | (2,838 | ) |   |   | (152 | ) |   |   | 69,309 |   |
| Other (expense) income, net                                                   |   |    | (27,034 | )            |   |         | 10,885  |        |   |         | (1,073 | ) |   |   | 152 |   |   |   | (17,070 | ) |
| Equity investment income, net                                                 |   |    | --      |         |   |         | 1,558   |        |   |         | -- |   |   |   | -- |   |   |   | 1,558 |   |
| (Loss) income before benefit (provision) for income taxes                     |   |    | (27,826 | )            |   |         | 85,534  |        |   |         | (3,911 | ) |   |   | -- |   |   |   | 53,797 |   |
| Benefit (provision) for income taxes                                          |   |    | 9,457   |         |   |         | (27,479 | )           |   |         | -- |   |   |   | -- |   |   |   | (18,022 | ) |
| Net (loss) income before equity in income (loss) of consolidated subsidiaries |   |    | (18,369 | )            |   |         | 58,055  |        |   |         | (3,911 | ) |   |   | -- |   |   |   | 35,775 |   |
| Equity in income (loss) of consolidated subsidiaries                          |   |    | 48,754  |         |   |         | (3,580  | )           |   |         | -- |   |   |   | (45,174 | ) |   |   | -- |   |
| Net income (loss)                                                             |   |    | 30,385  |         |   |         | 54,475  |        |   |         | (3,911 | ) |   |   | (45,174 | ) |   |   | 35,775 |   |
| Net (income) loss attributable to noncontrolling interests                    |   |    | --      |         |   |         | (5,721  | )           |   |         | 331 |   |   |   | -- |   |   |   | (5,390 | ) |
| Net income (loss) attributable to Vail Resorts, Inc.                          |   | $       | 30,385  |         |   | $            | 48,754  |        |   | $            | (3,580 | ) |   | $ | (45,174 | ) |   | $ | 30,385 |   |

|                                                                          |   |    |    | 100% Owned   |   |         |    |        |   |         |
|-------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                          |   | Parent  |    | Guarantor    |   | Other        |    | Eliminating |   |         |
|                                                                          |   | Company |    | Subsidiaries |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total net revenue                                                             |   | $       | --      |         |   | $            | 975,714 |        |   | $            | 10,602 |   |   | $ | (9,328 | ) |   | $ | 976,988 |   |
| Total operating expense                                                       |   |    | 498     |         |   |         | 868,576 |        |   |         | 10,956 |   |   |   | (9,176 | ) |   |   | 870,854 |   |
| (Loss) income from operations                                                 |   |    | (498    | )            |   |         | 107,138 |        |   |         | (354 | ) |   |   | (152 | ) |   |   | 106,134 |   |
| Other (expense) income, net                                                   |   |    | (27,035 | )            |   |         | 3,663   |        |   |         | (2,535 | ) |   |   | 152 |   |   |   | (25,755 | ) |
| Equity investment income, net                                                 |   |    | --      |         |   |         | 817     |        |   |         | -- |   |   |   | -- |   |   |   | 817 |   |
| (Loss) income before benefit (provision) for income taxes                     |   |    | (27,533 | )            |   |         | 111,618 |        |   |         | (2,889 | ) |   |   | -- |   |   |   | 81,196 |   |
| Benefit (provision) for income taxes                                          |   |    | 10,600  |         |   |         | (41,244 | )           |   |         | -- |   |   |   | -- |   |   |   | (30,644 | ) |
| Net (loss) income before equity in income (loss) of consolidated subsidiaries |   |    | (16,933 | )            |   |         | 70,374  |        |   |         | (2,889 | ) |   |   | -- |   |   |   | 50,552 |   |
| Equity in income (loss) of consolidated subsidiaries                          |   |    | 65,883  |         |   |         | (3,364  | )           |   |         | -- |   |   |   | (62,519 | ) |   |   | -- |   |
| Net income (loss)                                                             |   |    | 48,950  |         |   |         | 67,010  |        |   |         | (2,889 | ) |   |   | (62,519 | ) |   |   | 50,552 |   |
| Net income attributable to noncontrolling interests                           |   |    | --      |         |   |         | (1,127  | )           |   |         | (475 | ) |   |   | -- |   |   |   | (1,602 | ) |
| Net income (loss) attributable to Vail Resorts, Inc.                          |   | $       | 48,950  |         |   | $            | 65,883  |        |   | $            | (3,364 | ) |   | $ | (62,519 | ) |   | $ | 48,950 |   |

|                                                                          |   |    |    | 100% Owned   |   |         |    |        |   |         |
|-------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                          |   | Parent  |    | Guarantor    |   | Other        |    | Eliminating |   |         |
|                                                                          |   | Company |    | Subsidiaries |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total net revenue                                                             |   | $       | --      |         |   | $            | 878,337 |        |   | $            | 284,976 |   |   | $ | (11,157 | ) |   | $ | 1,152,156 |   |
| Total operating expense                                                       |   |    | 127     |         |   |         | 754,382 |        |   |         | 232,647 |   |   |   | (11,005 | ) |   |   | 976,151 |   |
| (Loss) income from operations                                                 |   |    | (127    | )            |   |         | 123,955 |        |   |         | 52,329 |   |   |   | (152 | ) |   |   | 176,005 |   |
| Other (expense) income, net                                                   |   |    | (27,015 | )            |   |         | 20,378  |        |   |         | (3,977 | ) |   |   | 152 |   |   |   | (10,462 | ) |
| Equity investment income, net                                                 |   |    | --      |         |   |         | 5,390   |        |   |         | -- |   |   |   | -- |   |   |   | 5,390 |   |
| (Loss) income before benefit (provision) for income taxes                     |   |    | (27,142 | )            |   |         | 149,723 |        |   |         | 48,352 |   |   |   | -- |   |   |   | 170,933 |   |
| Benefit (provision) for income taxes                                          |   |    | 10,341  |         |   |         | (73,427 | )           |   |         | -- |   |   |   | -- |   |   |   | (63,086 | ) |
| Net (loss) income before equity in income (loss) of consolidated subsidiaries |   |    | (16,801 | )            |   |         | 76,296  |        |   |         | 48,352 |   |   |   | -- |   |   |   | 107,847 |   |
| Equity in income of consolidated subsidiaries                                 |   |    | 119,728 |         |   |         | 47,709  |        |   |         | -- |   |   |   | (167,437 | ) |   |   | -- |   |
| Net income (loss)                                                             |   |    | 102,927 |         |   |         | 124,005 |        |   |         | 48,352 |   |   |   | (167,437 | ) |   |   | 107,847 |   |
| Net income attributable to noncontrolling interests                           |   |    | --      |         |   |         | (4,277  | )           |   |         | (643 | ) |   |   | -- |   |   |   | (4,920 | ) |
| Net income (loss) attributable to Vail Resorts, Inc.                          |   | $       | 102,927 |         |   | $            | 119,728 |        |   | $            | 47,709 |   |   | $ | (167,437 | ) |   | $ | 102,927 |   |

|                                                 |   |    |    |         |   | 100% Owned   |     |         |   |   |   |   |   |   |
|------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|----------|--------------|--------|--------|--------|--------|--------|--------|
|                                                 |   | Parent  |    | Guarantor    |   | Other        |     |         |   |   |
|                                                 |   | Company |    | Subsidiaries |   | Subsidiaries |     | Consolidated |
| Net cash provided by (used in) operating activities  |   | $       | 4,428   |         |   | $            | 31,943   |         |   | $      | (421   | )      |   | $      | 35,950 |   |
|                                                 |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Capital expenditures                                 |   |    | --      |         |   |         | (67,544  | )            |   |   | (1,413 | )      |   |   | (68,957 | ) |
| Acquisition of business                              |   |    | 2,193   |         |   |         | (18,063  | )            |   |   | --     |   |   |   | (15,870 | ) |
| Cash received from sale of real property             |   |    | --      |         |   |         | 8,920    |         |   |   | --     |   |   |   | 8,920 |   |
| Other investing activities, net                      |   |    | --      |         |   |         | (145     | )            |   |   | (7,500 | )      |   |   | (7,645 | ) |
| Net cash provided by (used in) investing activities  |   |    | 2,193   |         |   |         | (76,832  | )            |   |   | (8,913 | )      |   |   | (83,552 | ) |
|                                                 |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Acquisition of noncontrolling interest               |   |    | --      |         |   |         | (31,000  | )            |   |   | --     |   |   |   | (31,000 | ) |
| Repurchase of common stock                           |   |    | (14,999 | )            |   |         | --       |         |   |   | --     |   |   |   | (14,999 | ) |
| Proceeds from borrowings under other long-term debt  |   |    | --      |         |   |         | 140,962  |         |   |   | --     |   |   |   | 140,962 |   |
| Payments of other long-term debt                     |   |    | --      |         |   |         | (106,132 | )            |   |   | (177   | )      |   |   | (106,309 | ) |
| Other financing activities, net                      |   |    | 1,109   |         |   |         | (7,042   | )            |   |   | 10,328 |   |   |   | 4,395 |   |
| Advances from (to) affiliates                        |   |    | 7,269   |         |   |         | (7,269   | )            |   |   | --     |   |   |   | -- |   |
| Net cash (used in) provided by financing activities  |   |    | (6,621  | )            |   |         | (10,481  | )            |   |   | 10,151 |   |   |   | (6,951 | ) |
|                                                 |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents |   |    | --      |         |   |         | (55,370  | )            |   |   | 817    |   |   |   | (54,553 | ) |
| Cash and cash equivalents                            |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Beginning of period                                  |   |    | --      |         |   |         | 66,685   |         |   |   | 2,613  |   |   |   | 69,298 |   |
| End of period                                        |   | $       | --      |         |   | $            | 11,315   |         |   | $      | 3,430  |   |   | $      | 14,745 |   |

|                                                               |   |    |    |         |   | 100% Owned   |     |         |   |   |   |   |   |   |
|--------------------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|----------|--------------|--------|--------|--------|--------|--------|--------|
|                                                               |   | Parent  |    | Guarantor    |   | Other        |     |         |   |   |
|                                                               |   | Company |    | Subsidiaries |   | Subsidiaries |     | Consolidated |
| Net cash (used in ) provided by operating activities               |   | $       | (11,385 | )            |   | $            | 148,703  |         |   | $      | (3,042 | )      |   | $      | 134,276 |   |
|                                                               |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                              |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Capital expenditures                                               |   |    | --      |         |   |         | (106,145 | )            |   |   | (346   | )      |   |   | (106,491 | ) |
| Acquisition of business                                            |   |    | --      |         |   |         | (38,170  | )            |   |   | --     |   |   |   | (38,170 | ) |
| Other investing activities, net                                    |   |    | --      |         |   |         | 36       |         |   |   | --     |   |   |   | 36 |   |
| Net cash used in investing activities                              |   |    | --      |         |   |         | (144,279 | )            |   |   | (346   | )      |   |   | (144,625 | ) |
|                                                               |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                              |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Repurchase of common stock                                         |   |    | (22,367 | )            |   |         | --       |         |   |   | --     |   |   |   | (22,367 | ) |
| Proceeds from borrowings under non-recourse real estate financings |   |    | --      |         |   |         | 9,013    |         |   |   | --     |   |   |   | 9,013 |   |
| Payments of Non-Recourse Real Estate Financings                    |   |    | --      |         |   |         | (58,407  | )            |   |   | --     |   |   |   | (58,407 | ) |
| Proceeds from borrowings under other long-term debt                |   |    | --      |         |   |         | 67,280   |         |   |   | --     |   |   |   | 67,280 |   |
| Payments of other long-term debt                                   |   |    | --      |         |   |         | (82,464  | )            |   |   | (168   | )      |   |   | (82,632 | ) |
| Advances from (to) affiliates                                      |   |    | 33,010  |         |   |         | (33,010  | )            |   |   | --     |   |   |   | -- |   |
| Other financing activities, net                                    |   |    | 742     |         |   |         | 2,582    |         |   |   | 1,091  |   |   |   | 4,415 |   |
| Net cash provided by (used in) financing activities                |   |    | 11,385  |         |   |         | (95,006  | )            |   |   | 923    |   |   |   | (82,698 | ) |
|                                                               |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                          |   |    | --      |         |   |         | (90,582  | )            |   |   | (2,465 | )      |   |   | (93,047 | ) |
| Cash and cash equivalents                                          |   |    |    |         |   |         |     |         |   |   |   |   |   |   |   |   |
| Beginning of period                                                |   |    | --      |         |   |         | 157,267  |         |   |   | 5,078  |   |   |   | 162,345 |   |
| End of period                                                      |   | $       | --      |         |   | $            | 66,685   |         |   | $      | 2,613  |   |   | $      | 69,298 |   |

|                                                               |   |    |    |         |   | 100% Owned   |     |         |   |   |     |   |   |   |
|--------------------------------------------------------------------|--------|---------|---------|--------------|--------|--------------|----------|--------------|--------|--------|----------|--------|--------|--------|
|                                                               |   | Parent  |    | Guarantor    |   | Other        |     |         |   |   |
|                                                               |   | Company |    | Subsidiaries |   | Subsidiaries |     | Consolidated |
| Net cash provided by operating activities                          |   | $       | 9,792   |         |   | $            | 125,993  |         |   | $      | 81,211   |   |   | $      | 216,996 |   |
|                                                               |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Cash flows from investing activities:                              |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Capital expenditures                                               |   |    | --      |         |   |         | (108,240 | )            |   |   | (42,652  | )      |   |   | (150,892 | ) |
| Other investing activities, net                                    |   |    | --      |         |   |         | 2,782    |         |   |   | (25      | )      |   |   | 2,757 |   |
| Net cash used in investing activities                              |   |    | --      |         |   |         | (105,458 | )            |   |   | (42,677  | )      |   |   | (148,135 | ) |
|                                                               |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Cash flows from financing activities:                              |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Repurchase of common stock                                         |   |    | (99,615 | )            |   |         | --       |         |   |   | --       |   |   |   | (99,615 | ) |
| Proceeds from borrowings under non-recourse real estate financings |   |    | --      |         |   |         | --       |         |   |   | 136,519  |   |   |   | 136,519 |   |
| Payments of non-recourse real estate financings                    |   |    | --      |         |   |         | --       |         |   |   | (174,008 | )      |   |   | (174,008 | ) |
| Proceeds from borrowings under other long-term debt                |   |    | --      |         |   |         | 77,641   |         |   |   | --       |   |   |   | 77,641 |   |
| Payments of other long-term debt                                   |   |    | --      |         |   |         | (77,961  | )            |   |   | (160     | )      |   |   | (78,121 | ) |
| Advances from (to) affiliates                                      |   |    | 85,962  |         |   |         | (85,962  | )            |   |   | --       |   |   |   | -- |   |
| Other financing activities, net                                    |   |    | 3,861   |         |   |         | (3,572   | )            |   |   | (40      | )      |   |   | 249 |   |
| Net cash used in financing activities                              |   |    | (9,792  | )            |   |         | (89,854  | )            |   |   | (37,689  | )      |   |   | (137,335 | ) |
|                                                               |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents               |   |    | --      |         |   |         | (69,319  | )            |   |   | 845      |   |   |   | (68,474 | ) |
| Cash and cash equivalents                                          |   |    |    |         |   |         |     |         |   |   |     |   |   |   |   |   |
| Beginning of period                                                |   |    | --      |         |   |         | 226,586  |         |   |   | 4,233    |   |   |   | 230,819 |   |
| End of period                                                      |   | $       | --      |         |   | $            | 157,267  |         |   | $      | 5,078    |   |   | $      | 162,345 |   |

|   | (1) | See “Item 8.  Financial Statements and Supplementary Data” for the index to the Financial Statements. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (2) | All other schedules have been omitted because the required information is not applicable or because the information required has been included in the financial statements or notes thereto. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Posted Exhibit Number                                                                                                                                                                                                   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Sequentially Numbered Page |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| 3.1                                                                                                                                                                                                                     | Amended and Restated Certificate of Incorporation of Vail Resorts, Inc., dated January 5, 2005.  (Incorporated by reference to Exhibit 3.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 3.2                                                                                                                                                                                                                     | Amended and Restated By-Laws. (Incorporated by reference to Exhibit 3.1 on Form 8-K of Vail Resorts, Inc. filed February 6, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 4.1(a)                                                                                                                                                                                                                  | Indenture, dated as of January 29, 2004, among Vail Resorts, Inc., the guarantors therein and the Bank of New York as Trustee (Including Exhibit A, Form of Global Note).  (Incorporated by reference to Exhibit 4.1 on Form 8-K of Vail Resorts, Inc. filed on February 2, 2004.)                                                                                                                                                                                                                                                                                                                                                          |                       |
| 4.1(b)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of March 10, 2006 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York, as Trustee.  (Incorporated by reference to Exhibit 10.34 on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                               |                       |
| 4.1(c)                                                                                                                                                                                                                  | Form of Global Note.  (Incorporated by reference to Exhibit 4.1 on Form 8-K of Vail Resorts, Inc. filed February 2, 2004.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                       |
| 4.1(d)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of April 26, 2007 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York, as Trustee.  (Incorporated by reference to Exhibit 4.1(d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                    |                       |
| 4.1(e)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of July 11, 2008 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York Mellon Trust Company, N.A., as Trustee.  (Incorporated by reference to Exhibit 4.1(e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                          |                       |
| 4.1(f)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of January 29, 2009 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York Mellon Trust Company, N.A., as Trustee.   (Incorporated by reference to Exhibit 4.1(f) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2009.)                                                                                                                                                                                                                                                           |                       |
| 4.1(g)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of August 24, 2009 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York Mellon Trust Company, N.A., as Trustee.  (Incorporated by reference to Exhibit 4.1(g) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2009.)                                                                                                                                                                                                                                                                        |                       |
| 4.1(h)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of May 26, 2010 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York Mellon Trust Company, N.A., as Trustee.  (Incorporated by reference to Exhibit 4.1(h) on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2010.)                                                                                                                                                                                                                                                                       |                       |
| 4.1(i)                                                                                                                                                                                                                  | Supplemental Indenture, dated as of July 15, 2010 to Indenture dated as of January 29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as Guarantors, and The Bank of New York Mellon Trust Company, N.A., as Trustee.                                                                                                                                                                                                                                                                                                                                                                                                        | 50                         |
| 10.1                                                                                                                                                                                                                    | Forest Service Unified Permit for Heavenly ski area, dated April 29, 2002.  (Incorporated by reference to Exhibit 99.13 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                             |                       |
| 10.2(a)                                                                                                                                                                                                                 | Forest Service Unified Permit for Keystone ski area, dated December 30, 1996.  (Incorporated by reference to Exhibit 99.2(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.2(b)                                                                                                                                                                                                                 | Amendment No. 2 to Forest Service Unified Permit for Keystone ski area.  (Incorporated by reference to Exhibit 99.2(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.2(c)                                                                                                                                                                                                                 | Amendment No. 3 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit 10.3 (c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.2(d)                                                                                                                                                                                                                 | Amendment No. 4 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit 10.3 (d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.2(e)                                                                                                                                                                                                                 | Amendment No. 5 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit 10.3 (e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.3(a)                                                                                                                                                                                                                 | Forest Service Unified Permit for Breckenridge ski area, dated December 30, 1996.  (Incorporated by reference to Exhibit 99.3(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                |                       |
| 10.3(b)                                                                                                                                                                                                                 | Amendment No. 1 to Forest Service Unified Permit for Breckenridge ski area.  (Incorporated by reference to Exhibit 99.3(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.3(c)                                                                                                                                                                                                                 | Amendment No. 2 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to Exhibit 10.4 (c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.3(d)                                                                                                                                                                                                                 | Amendment No. 3 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to Exhibit 10.4 (d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.3(e)                                                                                                                                                                                                                 | Amendment No. 4 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to Exhibit 10.4 (e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.3(f)                                                                                                                                                                                                                 | Amendment No. 5 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to Exhibit 10.4(f) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                       |
| 10.4(a)                                                                                                                                                                                                                 | Forest Service Unified Permit for Beaver Creek ski area.  (Incorporated by reference to Exhibit 99.4(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                       |
| 10.4(b)                                                                                                                                                                                                                 | Exhibits to Forest Service Unified Permit for Beaver Creek ski area.  (Incorporated by reference to Exhibit 99.4(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                             |                       |
| 10.4(c)                                                                                                                                                                                                                 | Amendment No. 1 to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit 10.5(c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                       |
| 10.4(d)                                                                                                                                                                                                                 | Amendment No. 2 to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit 10.5(d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                       |
| 10.4(e)                                                                                                                                                                                                                 | Amendment to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit 10.5(e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                       |
| 10.4(f)                                                                                                                                                                                                                 | Amendment No. 3 to Forest Service Unified Permit for Beaver Creek ski area.  (Incorporated by reference to Exhibit 10.4(f) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |
| 10.5(a)                                                                                                                                                                                                                 | Forest Service Unified Permit for Vail ski area, dated November 23, 1993.  (Incorporated by reference to Exhibit 99.5(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                        |                       |
| 10.5(b)                                                                                                                                                                                                                 | Exhibits to Forest Service Unified Permit for Vail ski area.  (Incorporated by reference to Exhibit 99.5(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                       |
| 10.5(c)                                                                                                                                                                                                                 | Amendment No. 2 to Forest Service Unified Permit for Vail ski area.  (Incorporated by reference to Exhibit 99.5(c) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                                                                                                              |                       |
| 10.5(d)                                                                                                                                                                                                                 | Amendment No. 3 to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit 10.6 (d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                       |
| 10.5(e)                                                                                                                                                                                                                 | Amendment No. 4 to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit 10.6 (e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                       |
| 10.6(a)                                                                                                                                                                                                                 | Purchase and Sale Agreement by and between VAHMC, Inc. and DiamondRock Hospitality Limited Partnership, dated May 3, 2005.  (Incorporated by reference to Exhibit 10.18(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2005.)                                                                                                                                                                                                                                                                                                                                                                                        |                       |
| 10.6(b)                                                                                                                                                                                                                 | First Amendment to Purchase and Sale Agreement by and between VAHMC, Inc. and DiamondRock Hospitality Limited Partnership, dated May 10, 2005.  (Incorporated by reference to Exhibit 10.18(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2005.)                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.7(a)                                                                                                                                                                                                                 | Sports and Housing Facilities Financing Agreement between the Vail Corporation (d/b/a “Vail Associates, Inc.”) and Eagle County, Colorado, dated April 1, 1998. (Incorporated by reference to Exhibit 10 on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 1998.)                                                                                                                                                                                                                                                                                                                                                        |                       |
| 10.7(b)                                                                                                                                                                                                                 | Trust Indenture, dated as of April 1, 1998 securing Sports and Housing Facilities Revenue Refunding Bonds by and between Eagle County, Colorado and U.S. Bank, N.A., as Trustee.  (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 1998.)                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.8(a)                                                                                                                                                                                                                 | Fourth Amended and Restated Credit Agreement, dated as of January 28, 2005 among The Vail Corporation (d/b/a Vail Associates, Inc.), as borrower, Bank of America, N.A., as Administrative Agent, U.S. Bank National Association and Wells Fargo Bank, National Association as Co-Syndication Agents, Deutsche Bank Trust Company Americas and LaSalle Bank National Association as Co-Documentation Agents the Lenders party thereto and Banc of America Securities LLC, as Sole Lead Arranger and Sole Book Manager.  (Incorporated by reference to Exhibit 10.8(a) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2009.) |                       |
| 10.8(b)                                                                                                                                                                                                                 | First Amendment to Fourth Amended and Restated Credit Agreement, dated as of June 29, 2005 among The Vail Corporation (d/b/a Vail Associates, Inc.), as borrower and Bank of America, N.A., as Administrative Agent.  (Incorporated by reference to Exhibit 10.16(b) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                  |                       |
| 10.8(c)                                                                                                                                                                                                                 | Second Amendment to Fourth Amended and Restated Credit Agreement among The Vail Corporation, the Required Lenders and Bank of America, as Administrative Agent.  (Incorporated by reference to Exhibit 10.3 of Form 8-K of Vail Resorts, Inc. filed on March 3, 2006.)                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.8(d)                                                                                                                                                                                                                 | Limited Waiver, Release, and Third Amendment to Fourth Amended and Restated Credit Agreement, dated March 13, 2007.  (Incorporated by reference to Exhibit 10.8(d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.8(e)                                                                                                                                                                                                                 | Fourth Amendment to Fourth Amended and Restated Credit Agreement, dated April 30, 2008, among The Vail Corporation (d/b/a Vail Associates, Inc.) as borrower, the lenders party thereto and Bank of America, N.A., as Administrative Agent.  (Incorporated by reference to Exhibit 10.1 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2008.)                                                                                                                                                                                                                                                             |                       |
| 10.9(a)                                                                                                                                                                                                                 | Construction Loan Agreement, dated January 31, 2006 among Arrabelle at Vail Square, LLC, U.S. Bank National Association and Wells Fargo Bank, N.A..  (Incorporated by reference to Exhibit 10.33(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                                                                                             |                       |
| 10.9(b)                                                                                                                                                                                                                 | Completion Guaranty Agreement by and between The Vail Resorts Corporation and U.S. Bank National Association, dated January 31, 2006.  (Incorporated by reference to Exhibit 10.33(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                                                                                                           |                       |
| 10.9(c)                                                                                                                                                                                                                 | Completion Guaranty Agreement by and between Vail Resorts, Inc. and U.S. Bank National Association dated January 31, 2006. (Incorporated by reference to Exhibit 10.33(c) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                                                                                                                                 |                       |
| 10.10(a)**                                                                                                                                                                                                              | Construction Loan Agreement, dated March 19, 2007 among The Chalets at The Lodge at Vail, LLC, and Wells Fargo Bank, N.A.  (Incorporated by reference to Exhibit 10.3 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                                                                                                                               |                       |
| 10.10(b)                                                                                                                                                                                                                | Completion Guaranty Agreement by and between The Vail Corporation and Wells Fargo Bank, N.A., dated March 19, 2007.  (Incorporated by reference to Exhibit 10.4 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                                                                                                                                     |                       |
| 10.10(c)                                                                                                                                                                                                                | Completion Guaranty Agreement by and between Vail Resorts, Inc. and Wells Fargo Bank, N.A., dated March 19, 2007.  (Incorporated by reference to Exhibit 10.5 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                                                                                                                                       |                       |
| 10.10(d)                                                                                                                                                                                                                | Development Agreement Guaranty by and between The Vail Corporation and Wells Fargo Bank, N.A., dated March 19, 2007.  (Incorporated by reference to Exhibit 10.6 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.10(e)                                                                                                                                                                                                                | Development Agreement Guaranty by and between Vail Resorts, Inc. and Wells Fargo Bank, N.A., dated March 19, 2007.  (Incorporated by reference to Exhibit 10.7 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                                                                                                                                      |                       |
| 10.11                                                                                                                                                                                                                   | Amended and Restated Revolving Credit and Security Agreement between SSI Venture, LLC and U.S. Bank National Association, dated September 23, 2005. (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on September 29, 2005.)                                                                                                                                                                                                                                                                                                                                                                                        |                       |
| 10.12*                                                                                                                                                                                                                  | Vail Resorts, Inc. 1993 Stock Option Plan (Incorporated by reference to Exhibit 4.A of the registration statement on Form S-8 of Vail Resorts, Inc., dated October 21, 1997, File No. 333-38321.)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                       |
| 10.13*                                                                                                                                                                                                                  | Vail Resorts, Inc. 1996 Long Term Incentive and Share Award Plan (Incorporated by reference to the Exhibit 4.B of the registration statement on Form S-8 of Vail Resorts, Inc., dated October 21, 1997, File No. 333-38321.)                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.14*                                                                                                                                                                                                                  | Vail Resorts, Inc. 1999 Long Term Incentive and Share Award Plan.  (Incorporated by reference to Exhibit 4.1 of the registration statement on Form S-8 of Vail Resorts, Inc., dated September 7, 2007, File No. 333-145934.)                                                                                                                                                                                                                                                                                                                                                                                                                |                       |
| 10.15*                                                                                                                                                                                                                  |  Vail Resorts, Inc. Amended and Restated 2002 Long Term Incentive and Share Award Plan.  (Incorporated by reference to Exhibit 99.1 on Form 8-K of Vail Resorts, Inc. filed on December 10, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                                                |                       |
| 10.16*                                                                                                                                                                                                                  | Form of Stock Option Agreement.  (Incorporated by reference to Exhibit 10.20 of Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2007.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                       |
| 10.17*                                                                                                                                                                                                                  | Form of Restricted Share Unit Agreement.  (Incorporated by reference to Exhibit 10.17 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                       |
| 10.18*                                                                                                                                                                                                                  | Form of Share Appreciation Rights Agreement.  (Incorporated by reference to Exhibit 10.18 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                       |
| 10.19*                                                                                                                                                                                                                  | Stock Option Agreement between Vail Resorts, Inc. and Jeffrey W. Jones, dated September 30, 2005.  (Incorporated by reference to Exhibit 10.6 on Form 8-K of Vail Resorts, Inc. filed on March 3, 2006.)                                                                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.20*                                                                                                                                                                                                                  | Summary of Vail Resorts, Inc. Director Compensation, effective March 10, 2009.  (Incorporated by reference to Exhibit 10.20 on Form 10-K of Vail Resorts, Inc. filed on September 24, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                                                           |                       |
| 10.21*                                                                                                                                                                                                                  | Vail Resorts Deferred Compensation Plan, effective as of October 1, 2000.  (Incorporated by reference to Exhibit 10.23 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2000.)                                                                                                                                                                                                                                                                                                                                                                                                                                                |                       |
| 10.22                                                                                                                                                                                                                   | Vail Resorts Deferred Compensation Plan, effective as of January 1, 2005.  (Incorporated by reference to Exhibit 10.22 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                                                                |                       |
| 10.23*                                                                                                                                                                                                                  | Vail Resorts, Inc. Executive Perquisite Fund Program. (Incorporated by reference to Exhibit 10.27 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2007.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                       |
| 10.24*                                                                                                                                                                                                                  | Vail Resorts, Inc. Management Incentive Plan. (Incorporated by reference to Exhibit 10.7 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                       |
| 10.25*                                                                                                                                                                                                                  | Agreement, dated January 7, 2008, by and among Vail Associates, Inc., William A. Jensen and Intrawest ULC.  (Incorporated by reference to Exhibit 10.1 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                            |                       |
| 10.26*                                                                                                                                                                                                                  | Executive Employment Agreement made and entered into October 15, 2008 by and between Vail Resorts, Inc. and Robert A. Katz.  (Incorporated by reference to Exhibit 10.1 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                           |                       |
| 10.27(a)*                                                                                                                                                                                                               | Executive Employment Agreement made and entered into October 15, 2008 by and between Jeffrey W. Jones and Vail Resorts, Inc. (Incorporated by reference to Exhibit 10.2 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                     |                       |
| 10.27(b)*                                                                                                                                                                                                               | Restated First Amendment to Amended and Restated Employment Agreement, dated September 18, 2008, by and between Vail Resorts, Inc. and Jeffrey W. Jones. (Incorporated by reference to Exhibit 10.28(b) of Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                         |                       |
| 10.28*                                                                                                                                                                                                                  | Executive Employment Agreement made and entered into October 15, 2008 by and between Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and Keith Fernandez.  (Incorporated by reference to Exhibit 10.3 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                       |                       |
| 10.29*                                                                                                                                                                                                                  | Executive Employment Agreement made and entered into October 15, 2008 by and between Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and John McD. Garnsey.  (Incorporated by reference to Exhibit 10.4 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                     |                       |
| 10.30(a)*                                                                                                                                                                                                               | Executive Employment Agreement made and entered into October 15, 2008 by and between Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and Blaise Carrig.  (Incorporated by reference to Exhibit 10.5 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                         |                       |
| 10.30(b)*                                                                                                                                                                                                               | Addendum to the Employment Agreement, dated September 1, 2002, between Blaise Carrig and Heavenly Valley, Limited Partnership. (Incorporated by reference to Exhibit 10.31(b) of Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                   |                       |
| 10.31                                                                                                                                                                                                                   |  Form of Indemnification Agreement.  (Incorporated by reference to Exhibit 10.8 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                       |
| 21                                                                                                                                                                                                                      | Subsidiaries of Vail Resorts, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 58                         |
| 22                                                                                                                                                                                                                      | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 65                         |
| 23                                                                                                                                                                                                                      | Power of Attorney.  Included on signature pages hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                       |
| 31.1                                                                                                                                                                                                                    | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 66                         |
| 31.2                                                                                                                                                                                                                    | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 67                         |
| 32                                                                                                                                                                                                                      | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 68                         |
| *Management contracts and compensatory plans and arrangements.                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **Portions of this Exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission. |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

| Consolidated Financial Statement Schedule                    |
|--------------------------------------------------------------|
| Schedule II - Valuation and Qualifying Accounts and Reserves |
| (in thousands)                                               |
| For the Years Ended July 31,                                 |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   | Balance at |   | Charged to |   |   |   | Balance at |
|                                                         |   | Beginning of |   | Costs and |   |   |   | End of |
|                                                         |   | Period |   | Expenses |   | Deductions |   | Period |
| 2008                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory Reserves                                           |   | $ | 826 |   | $ | 2,729 |   | $ | (2,344 | ) |   | $ | 1,211 |
| Valuation Allowance on Income Taxes                          |   |   | 1,588 |   |   | -- |   |   | -- |   |   |   | 1,588 |
| Trade Receivable Allowances                                  |   |   | 2,118 |   |   | 670 |   |   | (1,122 | ) |   |   | 1,666 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory Reserves                                           |   |   | 1,211 |   |   | 2,496 |   |   | (2,252 | ) |   |   | 1,455 |
| Valuation Allowance on Income Taxes                          |   |   | 1,588 |   |   | -- |   |   | -- |   |   |   | 1,588 |
| Trade Receivable Allowances                                  |   |   | 1,666 |   |   | 2,109 |   |   | (1,898 | ) |   |   | 1,877 |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory Reserves                                           |   |   | 1,455 |   |   | 2,310 |   |   | (2,313 | ) |   |   | 1,452 |
| Valuation Allowance on Income Taxes                          |   |   | 1,588 |   |   | -- |   |   | -- |   |   |   | 1,588 |
| Trade Receivable Allowances                                  |   | $ | 1,877 |   | $ | 1,328 |   | $ | (946 | ) |   | $ | 2,259 |

| Date:  September 23, 2010 | Vail Resorts, Inc.                  |
|-------------------------------------|-------------------------------------|
|                                |                                |
|                                | By:                                 | /s/ Jeffrey W. Jones |
|                                | Jeffrey W. Jones                    |
|                                | Senior Executive Vice President and |
|                                | Chief Financial Officer             |
|                                | (Principal Financial Officer)       |

| Date:  September 23, 2010 | Vail Resorts, Inc.                    |
|-------------------------------------|---------------------------------------|
|                                |                                  |
|                                | By:                                   | /s/ Mark L. Schoppet |
|                                | Mark L. Schoppet                      |
|                                | Senior Vice President, Controller and |
|                                | Chief Accounting Officer              |
|                                | (Principal Accounting Officer)        |

|                    |                                              |
|-------------------------|---------------------------------------------------|
| /s/ Robert A. Katz      | Chief Executive Officer and Chairman of the Board |
| Robert A. Katz          | (Principal Executive Officer)                     |
| /s/ Jeffrey W. Jones    | Senior Executive Vice President,                  |
| Jeffrey W. Jones        | Chief Financial Officer and Director              |
|                    | (Principal Financial Officer)                     |
| /s/ Roland A. Hernandez |                                              |
| Roland A. Hernandez     | Director                                          |
| /s/ Thomas D. Hyde      |                                              |
| Thomas D. Hyde          | Director                                          |
| /s/ Richard D. Kincaid  |                                              |
| Richard D. Kincaid      | Director                                          |
| /s/ John T. Redmond     |                                              |
| John T. Redmond         | Director                                          |
| /s/ Hilary A. Schneider |                                              |
| Hilary A. Schneider     | Director                                          |
| /s/ John F. Sorte       |                                              |
| John F. Sorte           | Director                                          |
|                    |                                              |