**Exhibit
        99.1**
 **VAIL
        RESORTS**
 **NEWS
        RELEASE**
 **FOR
                  IMMEDIATE RELEASE**
  **Vail
        Resorts Contacts:**
 Media:  Kelly
        Ladyga, (303) 404-1862, kladyga@vailresorts.com
 Investor
        Relations:  Jeff Jones, CFO, (303) 404-1802,
        jwjones@vailresorts.com
 
  **VAIL
        RESORTS ANNOUNCES STRONG FISCAL 2007 SECOND QUARTER
        RESULTS**
 l
              Second
                  quarter net income of $53.0 million, or $1.35 per diluted share,
                  a 23%
                  increase in net income and a 21% increase in earnings per diluted
                  share
                  over the prior year second quarter.l
              Second
                  quarter Resort Reported EBITDA of $115.7 million, a 20% increase
                  over the
                  prior year second quarter.l
              Second
                  quarter Resort revenue of $304.8 million, a 9.5% increase over
                  the prior
                  year second quarter.
 
 BROOMFIELD,
        Colo. - March 12, 2007 - Vail Resorts, Inc. (NYSE: MTN) announced today
        financial results for the second quarter of fiscal 2007 ended January 31,
        2007.
 The
        Company uses the term “Reported EBITDA” and “Reported EBITDA excluding
        stock-based compensation” when reporting financial results in accordance with
        SEC rules regarding the use of non-GAAP financial measures. The Company defines
        Reported EBITDA as segment net revenue less segment operating expense plus
        segment equity investment income.
  **SECOND
        QUARTER PERFORMANCE**
 **Mountain
        Segment**
 Mountain
        revenue increased $25.8 million, or 10.5%, in the second quarter of fiscal
        2007
        to $272.0 million from $246.2 million for the comparable quarter last fiscal
        year. Mountain expense increased $9.2 million, or 6.1%, to $159.9 million.
        Reported EBITDA for the Mountain segment grew $16.6 million, or 17.1%, to
        $113.7
        million compared to $97.0 million for the comparable quarter last fiscal
        year.
 
 **Lodging
        Segment**
 Lodging
        revenue increased $0.7 million, or 2.2%, in the second quarter of fiscal
        2007 to
        $32.8 million from $32.1 million for the comparable quarter last fiscal year.
        Lodging expense decreased $2.1 million, or 6.5%, to $30.8 million. For the
        second quarter of fiscal 2006, the Lodging segment included revenue of $1.9
        million and operating expense of $1.8 million related to Snake River Lodge
&
Spa (“SRL&S”), which was sold by the Company in January 2006; the Company
        subsequently obtained a long-term management contract for the hotel. Excluding
        the impact of the sale of SRL&S, Lodging revenue increased $2.6 million, or
        8.5%, while expenses remained relatively flat. Reported EBITDA for the Lodging
        segment grew $2.9 million, or 350.2%, to $2.0 million compared to a loss
        of $0.8
        million for the comparable quarter last fiscal year.
 
 **Resort
        - Combination of Mountain and Lodging Segments**
 Resort
        revenue, the combination of Mountain and Lodging revenue, increased $26.5
        million, or 9.5%, in the second quarter of fiscal 2007 to $304.8 million
        from
        $278.3 million for the comparable quarter last fiscal year. Resort expense
        increased $7.1 million, or 3.9%, to $190.6 million. Second fiscal quarter
        Resort
        Reported EBITDA increased $19.5 million to $115.7 million, a 20.3% increase
        over
        the comparable quarter last fiscal year. Resort Reported EBITDA excluding
        stock-based compensation increased $19.4 million, or 19.8%, to $117.0
        million.
 
 **Real
        Estate Segment**
 Real
        Estate revenue increased $46.5 million, or 479.0%, in the second quarter
        of
        fiscal 2007 to $56.2 million from $9.7 million for the comparable quarter
        last
        fiscal year. Real Estate expense increased 689.5% to $50.4 million. Real
        Estate
        Reported EBITDA for the quarter ended January 31, 2007, increased $2.5 million,
        or 73.5%, to $5.8 million compared to $3.4 million in the comparable quarter
        last fiscal year.
 
 **Total
        Performance**
 Total
        revenue increased $73.0 million, or 25.4%, in the second quarter of fiscal
        2007
        to $361.0 million from $288.0 million for the comparable quarter last fiscal
        year. Income from operations for the quarter increased $20.7 million, or
        26.9%,
        to $97.8 million. The Company recorded total pre-tax stock-based compensation
        expense of $1.8 million in the three months ended January 31, 2007, which
        was
        relatively flat compared to the three months ended January 31,
        2006.
 The
        Company reported second quarter fiscal 2007 net income of $53.0 million,
        or
        $1.35 per diluted share, compared to net income of $43.0 million, or $1.12
        per
        diluted share, for the same quarter last fiscal year. Excluding stock-based
        compensation expense, the Company’s net income for the second quarter of fiscal
        2007 would have been $54.1 million, or $1.38 per diluted share compared to
        net
        income of $44.1 million excluding stock-based compensation, or $1.15 per
        diluted
        share, for the same quarter last fiscal year.
 
 **SIX
        MONTH PERFORMANCE**
 **Mountain
        Segment**
 Mountain
        revenue grew $31.7 million, or 11.1%, for the six months ended January 31,
        2007
        to $318.2 million from $286.5 million for the comparable period last fiscal
        year. Mountain expense increased $16.4 million, or 7.4%, to $239.4 million.
        Reported EBITDA for the Mountain segment in the first half of fiscal 2007
        grew
        $15.3 million, or 23.2%, to $81.2 million compared to $65.9 million for the
        comparable period last fiscal year.
 
 **Lodging
        Segment**
 Lodging
        revenue decreased by $0.6 million, or 0.8%, for
        the
        six months ended January 31, 2007 to $73.2
        million from $73.8 million for the comparable period last fiscal year. Lodging
        expense decreased $3.4 million, or 4.9%, to $67.1 million. For the first
        half of
        fiscal 2006, the Lodging segment included revenue of $5.2 million and operating
        expense of $4.3 million related to SRL&S. Excluding the impact of the sale
        of SRL&S, Lodging revenue increased $4.6 million, or 6.7%, and expenses
        increased by $0.8 million, or 1.3%. Additionally, the Company recognized
        $2.4
        million of revenue in the first half of fiscal 2007 associated with a
        termination fee pursuant to the terms of the management agreement at The
        Lodge
        at Rancho Mirage, in conjunction with the closing of the hotel as part of
        a
        redevelopment plan by the current hotel owner. Reported EBITDA for the Lodging
        segment in the first half of fiscal 2007 grew $2.8 million, or 85.1%, to
        $6.1
        million compared to $3.3 million in the comparable period last fiscal year.
 
 **Resort
        - Combination of Mountain and Lodging Segments**
 Resort
        revenue, the combination of Mountain and Lodging revenue, increased $31.1
        million, or 8.6%, for
        the
        six months ended January 31, 2007 to
        $391.4 million from $360.3 million for the comparable period last fiscal
        year.
        Resort expense increased $13.0 million, or 4.4%, to $306.5 million. Resort
        Reported EBITDA in the first half of fiscal 2007 increased $18.1 million
        to
        $87.3 million, a 26.2% increase over the comparable period last fiscal year.
        Resort Reported EBITDA excluding stock-based compensation increased $18.0
        million, or 25.0%, to $89.9 million.
 
 **Real
        Estate Segment**
 Real
        Estate revenue increased $70.0 million, or 534.5%, for the six months ended
        January 31, 2007 to $83.1 million from $13.1 million for the comparable period
        last fiscal year. Real Estate expense increased 514.4% to $76.5 million.
        Real
        Estate Reported EBITDA in the first half of fiscal 2007 increased $5.9 million,
        or 783.9%, to $6.6 million compared to $0.8 million in the comparable period
        last fiscal year.
 
 **Total
        Performance**
 Total
        revenue increased $101.1 million, or 27.1%, for the six months ended January
        31,
        2007 to $474.5 million from $373.4 million for the comparable period last
        fiscal
        year. Income from operations for the six months increased $19.8 million,
        or
        72.8%, to $46.9 million. The Company recorded total pre-tax stock-based
        compensation expense of $3.7 million in the six months ended January 31,
        2007,
        as compared to $3.6 million, for the six months ended January 31,
        2006.
 The
        Company reported first half fiscal 2007 net income of $17.2 million, or $0.44
        per diluted share, compared to net income of $8.7 million, or $0.23 per diluted
        share, for the same period last fiscal year. Excluding stock-based compensation
        expense, the Company’s net income for the first half of fiscal 2007 would have
        been $19.5 million, or $0.50 per diluted share compared to net income of
        $10.9
        million excluding stock-based compensation, or $0.29 per diluted share, for
        the
        same period last fiscal year.
  **Business
        Commentary and Outlook**
 Robert
        Katz, Chief Executive Officer, commented, “We are very pleased with our strong
        performance in the second quarter, which clearly exceeded our expectations.
        The
        second quarter, which essentially contains the first half of the 2006/2007
        ski
        season, reflected a total Mountain segment revenue increase of 10.5% against
        record prior year comparables, with lift revenues up 13.4% and the ancillary
        businesses up commensurately. The lift revenue increase was helped by strong
        season pass sales, up 20.0% over the prior year (of which we recognized 52.4%
        in
        the second quarter, with the remainder to be recognized in the third quarter).
        Excluding skier visits from season passes, our skier visitation was up 4.8%
        at
        our Colorado resorts, reflecting strong destination guest visitation, partially
        offset by a weather impacted decrease of 6.2% in total skier visits at our
        Heavenly resort. Effective Ticket Price was up 7.0% excluding the season
        pass
        revenue, reflecting our continuing ability to increase absolute prices combined
        with the favorable mix impact resulting from the increase in destination
        guest
        visitation. The increase in destination visitors at our mountain resorts
        favorably impacted our lodging operations as well, with revenue per available
        room, or RevPAR, up 16.7% for the quarter on a “same store” basis at our owned
        lodging properties and condominiums we manage around our mountain resorts.
        The
        increased revenues in our Resort business flowed through at a very high rate
        to
        the bottom line, resulting in a 20.3% increase in Resort Reported EBITDA.
        It is
        certainly a testament to our incredible employee group that we continue to
        build
        upon our record success in prior years, while still delivering an exceptional
        experience to our guests.”
 Turning
        to our real estate business, Katz commented, “We have numerous exciting
        initiatives underway on the real estate side as well, which should also
        contribute to further improved Resort operating performance down the road. As
        part
        of Vail’s Front Door project, I am pleased to report that we
        have
        now entered into purchase and sale agreements for all 13 of The Lodge at Vail
        Chalets at an average price per square foot of $2,488. Additionally, marketing
        of the Vail Mountain Club, an exclusive slope-side private club steps from
        the
        Vista Bahn Express lift, has continued. We
        have
        sold 88 full memberships, which include parking privileges, and an additional
        77
        social memberships, which exclude parking. The full
        memberships we have received to date carry a membership
        initiation fee deposit of $250,000 and the social memberships we have received
        to date carry a membership initiation fee deposit of $100,000.  We
        currently have total sales commitments representing $29.6 million of total
        proceeds when paid in full. Given the current status of the Front Door project,
        we are increasing our estimate on
        expected income, before provision for income taxes and before allocated
        corporate or Vail Resorts Development Company overhead from the sale of The
        Lodge at Vail Chalets to a range of $65 million to $75 million. Similarly,
        we
        are reducing our estimate for investment in resort depreciable assets of
        the
        Front Door project to $25 million to $40 million, net of estimated cash proceeds
        from the club initiation fee deposits.”
 Commenting
        on Breckenridge, Katz said “We opened the new Breckenridge gondola on December
        31, 2006, truly connecting the Town and the Mountain and setting the stage
        for
        the development of Peaks 7 and 8. We
        began
        selling the Crystal Peak Lodge condominiums in December 2006, and currently
        have
        41 of the 46 units already under contract at an average sales price per square
        foot of $958, almost double what the average sales price per square foot
        on the
        similarly finished Mountain Thunder townhomes in Breckenridge sold for just
        two
        years ago. In
        addition, we closed on a land sale in the second quarter for a parcel of
        land at
        Peak 7 to a third party developer to build a fractional ownership property.
        We
        currently expect that income, before provision for income taxes and before
        allocated corporate or Vail Resorts Development Company overhead, for the
        Peak 7
        projects will range from $8.0 million to $13.0 million.”
 Katz
        commented, “I am pleased to announce that we have launched The Ritz-Carlton
        Residences, Vail project with 71, two to six bedroom condominiums currently
        priced at an average of approximately $1,775 per square foot.  We began
        marketing this project in February 2007, and have already executed reservation
        agreements on 54 units representing $185.4 million in gross sales
        proceeds.  We expect to convert those reservations to contracts in April
        2007. In addition, in December 2006, the Company renegotiated its April 2005
        license agreement related to this project with The Ritz-Carlton Hotel Company,
        L.L.C. (“RCHC”). In exchange for a reduction in the license fee to be paid to
        RCHC, the Company concurrently entered into a purchase and sale agreement
        which
        provided for The Ritz-Carlton Development Company, Inc.’s (“RCDC”) acquisition
        of an incremental 45 units in the project for a total purchase price of $110.7
        million; RCDC will, in turn, market and sell these 45 units as Ritz-Carlton
        Club
        fractional ownership units, creating additional hot beds for Vail
        Mountain.  We are very excited about bringing one of the premier fractional
        programs to Vail. We
        currently anticipate that income, before provision for income taxes and before
        allocated corporate or Vail Resorts Development Company overhead, for The
        Ritz-Carlton project will range from $80 million to $90 million.”
 Katz
        added, “ Also
        in
        the second quarter, we closed on the remaining Gore Creek Place units in
        LionsHead. Additionally, construction continues on The Arrabelle at Vail
        Square
        in LionsHead. Construction cost estimates have increased on the project,
        caused
        by, among other things, a potential scheduling delay in the closing on at
        least
        the condominium portion of The Arrabelle project. At this time, we are reducing
        our estimate on expected income, before provision for income taxes and before
        allocated corporate or Vail Resorts Development Company overhead, for The
        Arrabelle and Gore Creek projects to $50 million to $60 million, of which
        approximately $20 million has been recognized through the second quarter
        of
        fiscal 2007 on the Gore Creek project, which was as expected. Additionally,
        given the current programming for The Arrabelle mountain club, we believe
        proceeds from the sale of club memberships will be higher than originally
        anticipated, and therefore are reducing our estimate of investment in resort
        depreciable assets, net of club proceeds, to a current estimated range of
        $50
        million to $70 million, which includes an estimate of $95 million to $105
        million for the resort depreciable assets and an estimate of $35 million
        to $45
        million of cash proceeds from the club initiation fee deposits. All of the
        aforementioned estimates related to our real estate projects are based upon
        our
        most recent cost estimates based upon current plans and how the costs
        relate to both the real estate and resort projects. We have also seen increased
        construction costs on our development project in Jackson, WY, some of which
        were
        accrued in the most recent quarter. It is disappointing that we have not
        been
        able to fully overcome the challenges presented by the coordination and
        implementation of the design at the beginning of both The Arrabelle and Jackson
        developments. At the same time, I am confident that the processes we have
        in
        place for our most recent projects, including Front Door, Crystal Peak and
        The
        Ritz-Carlton Residences will allow us to better complete these efforts within
        budget and on schedule.”
 Finally
        on real estate, Katz added, “On March 5, 2007, we announced our plans for a new
        project to be called “Ever Vail.” The $1 billion project, which remains subject
        to required approvals, will transform the 9.5-acre site, currently known
        as West
        LionsHead, into one of the largest LEED-certified projects for resort use
        in
        North America and one of the first projects for consideration in LEED’s new
“Neighborhood Development” certification program. Ever Vail will consist of
        residences, a hotel, offices, retail shops and restaurants, mountain operations
        facilities, a public parking garage, a new gondola and related skier portal
        and
        a public park. The Company anticipates a total of 600,000 to 700,000 saleable
        square feet and beginning real estate sales on the project in 2009. The name
        Ever Vail was thoughtfully chosen to reflect the project’s guiding principle of
        sustainability, that is, pairing Vail Mountain’s enduring preeminent position in
        the resort industry with an ongoing commitment to minimize the Company’s
        footprint on the land.”
 On
        our
        lodging business, Katz commented, “We recently announced the addition of the new
        56 room and suite hotel, Eleven Biscayne Hotel & Spa in Miami, opening
        in early 2009 as part of the RockResorts branded properties. RockResorts
        will
        manage the hotel while providing technical consulting services during the
        development and pre-opening phases of the project. In addition, RockResorts
        will
        manage the new Rum Cay Resort in the Bahamas and will assist in the marketing
        of
        whole and fractional ownership units within the resort and provide technical
        advisory services in the design and construction of the resort. However,
        we have
        been notified by the owners of The Equinox Resort & Spa in Vermont, which we
        manage under the RockResorts brand, that the owner of this property has decided
        to sell The Equinox hotel as part of a divestiture plan, at which time the
        management agreement with RockResorts will be terminated (currently anticipated
        to be in the Company’s third fiscal quarter ending April 30, 2007), which will
        result in Vail Resorts receiving a termination fee, but loss of future
        management fees.”
 Katz
        commented on the Cheeca award, “We were recently awarded $8.5 million in damages
        against Cheeca Holdings LLC, the owner of the former RockResorts’ property at
        Cheeca Lodge & Spa in Islamorada, Florida, which will not be reflected in
        our financial results until it is received.  The arbitrator’s decision
        found that the owner of Cheeca Lodge & Spa had wrongfully terminated the
        hotel management contract and that RockResorts did not breach the contract. We
        will
        also seek recovery of our attorneys’ fees and costs in the last stage of
        proceedings scheduled to occur within the next 90 days. The total arbitration
        award is binding and non-appealable. We are extremely pleased with the
        arbitrator’s decision in the case; i t
        vindicates our belief that RockResorts performed its management obligations
        to
        Cheeca in good faith and in accordance with the management contract. RockResorts
        takes its contractual responsibilities seriously and is committed to delivering
        quality management services and financial performance to our ownership groups
        and exceptional vacation experiences to our lodging guests.”
 Katz
        concluded, “With the performance that we have achieved so far this fiscal year,
        we would like to take this opportunity to update the fiscal 2007 guidance
        that
        we previously provided in our fiscal 2006 year-end earnings release and
        reiterated during our first quarter earnings call. Based on our current
        estimates, we expect full year Resort Reported EBITDA, the combination of
        our
        Mountain and Lodging segments, to range from $211 million to $219 million,
        and
        Resort Reported EBITDA excluding stock-based compensation expense to range
        from
        $216 million to $224 million. The Resort guidance includes a range for Mountain
        Reported EBITDA of $193 million to $201 million, and Mountain Reported EBITDA
        excluding stock-based compensation expense of $197 million to $205 million,
        while we expect Lodging Reported EBITDA to range from $16 million to $21
        million
        and Lodging Reported EBITDA excluding stock-based compensation expense to
        range
        from $17 million to $22 million. Conversely, we are reducing our guidance
        for
        Real Estate Reported EBITDA, given the additional unanticipated costs we
        incurred for our Jackson Hole Golf & Tennis Club development and timing of
        closings on certain transactions, among other things. As a result, we now
        expect
        Real Estate Reported EBITDA to range from zero to negative $5 million and
        Real
        Estate Reported EBITDA excluding stock-based compensation expense to range
        from
        $2 million to negative $3 million. Finally, based on our current estimates,
        we
        expect net income to range from $55 million to $63 million and net income
        excluding stock-based compensation expense to range from $60 million to $68
        million. Also, in the second quarter, we continued our previously announced
        share repurchase program, resulting in the repurchase of 167,700 shares at
        an
        average price of $44.76 for a total amount of $7.5 million. Since inception
        of
        this program in fiscal 2006, the Company has repurchased 673,500 shares at
        an
        average price of $38.38 for a total amount of approximately $25.8 million,
        with
        2,326,500 shares remaining available under the existing repurchase
        authorization.”
 
 **Resort
        Capital Expenditure Announcement**
 The
        Company also announced its calendar 2007 Resort capital expenditure plans,
        exclusive of resort depreciable assets associated with the Company’s various
        real estate projects. The Company expects to spend approximately $90 million
        to
        $95 million of resort capital expenditures in calendar 2007, including $38
        million to $40 million for capital expenditures necessary to maintain the
        appearance and level of service at the Company’s five ski resorts and throughout
        its hotels. Highlights of these “maintenance” capital expenditures include
        snow-cat replacements, snowmaking equipment, uniforms for all five mountains,
        lodging furniture fixture & equipment and rental equipment fleet capital.
        Resort discretionary capital is expected to be in the range of $52 million
        and
        $55 million with expected projects including a new Beaver Creek children’s ski
        school gondola and a related ski school building at the top of the new gondola,
        replacement and realignment of Chair 10 and Chair 14 at Vail Mountain with
        high-speed chairlifts, a new high-speed chairlift at Heavenly, an expanded
        spa
        at The Keystone Lodge and upgrades to the central reservations, marketing
        database and e-commerce booking systems, among other projects.
 Commenting
        on the capital expenditure announcement, Katz said, “Our core mission is to
        provide guests exceptional experiences at our extraordinary resorts. With
        our
        strong financial performance to date, our capital program for this year is
        designed to further enhance and differentiate the experience at our Company’s
        resorts and solidify our position as the premier mountain resort operator
        in
        North America.”
  **CONFERENCE
        CALL**
 For
        further discussion of the contents of this press release, please listen to
        our
        live webcast today at 11:00 am EDT, available on www.vailresorts.com. In
        order
        to access the non-GAAP financial information that will be referenced on the
        call, click on the Regulation G Compliance section under the Investor Relations
        tab at www.vailresorts.com.
 
 Vail
        Resorts, Inc. is the premier mountain resort operator in North America. The
        Company’s subsidiaries operate the mountain resorts of Vail, Beaver Creek,
        Breckenridge and Keystone in Colorado, Heavenly Resort in California and
        Nevada
        and the Grand Teton Lodge Company in Jackson Hole, Wyoming. The Company's
        subsidiary, RockResorts, a luxury resort hotel company, manages casually
        elegant
        properties across the United States. The Vail Resorts corporate website is
        www.vailresorts.com and the consumer websites are www.snow.com and
        www.rockresorts.com. Vail Resorts, Inc. is a publicly held company traded
        on the
        New York Stock Exchange (NYSE: MTN).
 ***
 *Statements
        in this press release, other than statements of historical information, are
        forward looking statements that are made pursuant to the safe harbor provisions
        of the Private Securities Litigation Reform Act of 1995. Such forward-looking
        statements are subject to certain risks and uncertainties that could cause
        actual results to differ materially from those projected. Readers are cautioned
        not to place undue reliance on these forward-looking statements which speak
        only
        as of the date hereof. Such risks and uncertainties include but are not limited
        to: economic downturns; terrorist acts upon the United States; threat of
        or
        actual war; unfavorable weather conditions; our ability to obtain financing
        on
        terms acceptable to us to finance our real estate investments, capital
        expenditures and growth strategy; our ability to continue to grow our resort
        and
        real estate operations; competition in our Mountain and Lodging businesses;
        termination of existing hotel management contracts; adverse changes in the
        real
        estate markets; failure to commence or complete the planned real estate
        development projects; failure to achieve the anticipated short and long-term
        financial benefits from the planned real estate development projects; shortages
        or rising costs in construction materials; implications arising from new
        Financial Accounting Standards Board (“FASB”)/governmental legislation, rulings
        or interpretations; our reliance on government permits or approvals for our
        use
        of federal land or to make operational improvements; our ability to integrate
        and successfully operate future acquisitions; and adverse consequences of
        current or future legal claims. All forward-looking statements attributable
        to
        us or any persons acting on our behalf are expressly qualified in their entirety
        by these cautionary statements. Investors are also directed to other risks
        discussed in documents filed by the Company with the Securities and Exchange
        Commission.*
 
  
  
 **Vail
                  Resorts, Inc.****Consolidated
                  Condensed Statements of Operations****(In
                  thousands, except per share amounts)****(Unaudited)****Three
                  Months Ended****January
                  31,****2007**
              **2006**Net
                  revenue:Mountain
              $
              272,026
              
              $
              246,228Lodging
              
              32,796
              
              
              32,079Real
                  estate
              
              56,216
              
              
              9,709Total
                  net revenue
              
              361,038
              
              
              288,016Segment
                  operating expense:Mountain
              
              159,871
              
              
              150,666Lodging
              
              30,757
              
              
              32,894Real
                  estate
              
              50,391
              
              
              6,383Total
                  segment operating expense
              
              241,019
              
              
              189,943Other
                  operating (expense) income:Depreciation
                  and amortization
              
              (21,759
              )
              
              (21,431
              )Relocation
                  and separation charges
              
              (500
              )
              
              --Mold
                  remediation credit
              
              --
              
              
              852Loss
                  on disposal of fixed assets, net
              
              (10
              )
              
              (486
              )Income
                  from operations
              
              97,750
              
              
              77,008Mountain
                  equity investment income, net
              
              1,496
              
              
              1,455Real
                  estate equity investment income
              
              --
              
              
              31Investment
                  income
              
              2,417
              
              
              1,046Interest
                  expense, net
              
              (7,911
              )
              
              (9,502
              )Gain
                  on sale of businesses, net
              
              --
              
              
              4,625Contract
                  dispute charges
              
              (672
              )
              
              --Gain
                  on put options
              
              --
              
              
              1,026Other
                  income, net
              
              --
              
              
              51Minority
                  interest in income of consolidated subsidiaries, net
              
              (6,152
              )
              
              (5,231
              )Income
                  before provision for income taxes
              
              86,928
              
              
              70,509Provision
                  for income taxes
              
              (33,902
              )
              
              (27,498
              )Net
                  income
              $
              53,026
              
              $
              43,011**Per
                  share amounts**:Basic
                  net income per share
              $
              1.37
              
              $
              1.15Diluted
                  net income per share
              $
              1.35
              
              $
              1.12**Other
                  Data:**Mountain
                  Reported EBITDA
              $
              113,651
              
              $
              97,017Mountain
                  Reported EBITDA excluding stock-based compensation
              $
              114,708
              
              $
              98,016Lodging
                  Reported EBITDA
              $
              2,039
              
              $
              (815
              )Lodging
                  Reported EBITDA excluding stock-based compensation
              $
              2,260
              
              $
              (401
              )Resort
                  Reported EBITDA
              $
              115,690
              
              $
              96,202Resort
                  Reported EBITDA excluding stock-based compensation
              $
              116,968
              
              $
              97,615Real
                  Estate Reported EBITDA
              $
              5,825
              
              $
              3,357Real
                  Estate Reported EBITDA excluding stock-based compensation
              $
              6,311
              
              $
              3,758
 
 
 
 
 
 **Vail
                  Resorts, Inc.****Consolidated
                  Condensed Statements of Operations****(In
                  thousands, except per share amounts)****(Unaudited)****Six
                  Months Ended****January
                  31,****2007**
              **2006**Net
                  revenue:Mountain
              $
              318,189
              
              $
              286,505Lodging
              
              73,204
              
              
              73,829Real
                  estate
              
              83,138
              
              
              13,102Total
                  net revenue
              
              474,531
              
              
              373,436Segment
                  operating expense:Mountain
              
              239,358
              
              
              222,957Lodging
              
              67,106
              
              
              70,535Real
                  estate
              
              76,509
              
              
              12,452Total
                  segment operating expense
              
              382,973
              
              
              305,944Other
                  operating (expense) income:Depreciation
                  and amortization
              
              (43,344
              )
              
              (40,354
              )Relocation
                  and separation charges
              
              (1,235
              )
              
              --Asset
                  impairment charge
              
              --
              
              
              (136
              )Mold
                  remediation credit
              
              --
              
              
              852Loss
                  on disposal of fixed assets, net
              
              (91
              )
              
              (726
              )Income
                  from operations
              
              46,888
              
              
              27,128Mountain
                  equity investment income, net
              
              2,331
              
              
              2,305Real
                  estate equity investment income
              
              --
              
              
              100Investment
                  income
              
              4,481
              
              
              2,234Interest
                  expense, net
              
              (16,847
              )
              
              (18,939
              )Gain
                  on sale of businesses, net
              
              --
              
              
              4,625Contract
                  dispute charges
              
              (4,276
              )
              
              --Gain
                  on put options
              
              --
              
              
              34Other
                  income, net
              
              --
              
              
              51Minority
                  interest in income of consolidated subsidiaries, net
              
              (4,363
              )
              
              (3,305
              )Income
                  before provision for income taxes
              
              28,214
              
              
              14,233Provision
                  for income taxes
              
              (11,004
              )
              
              (5,551
              )Net
                  income
              $
              17,210
              
              $
              8,682**Per
                  share amounts:**Basic
                  net income per share
              $
              0.44
              
              $
              0.23Diluted
                  net income per share
              $
              0.44
              
              $
              0.23**Other
                  Data:**Mountain
                  Reported EBITDA
              $
              81,162
              
              $
              65,853Mountain
                  Reported EBITDA excluding stock-based compensation
              $
              83,239
              
              $
              67,807Lodging
                  Reported EBITDA
              $
              6,098
              
              $
              3,294Lodging
                  Reported EBITDA excluding stock-based compensation
              $
              6,652
              
              $
              4,115Resort
                  Reported EBITDA
              $
              87,260
              
              $
              69,147Resort
                  Reported EBITDA excluding stock-based compensation
              $
              89,891
              
              $
              71,922Real
                  Estate Reported EBITDA
              $
              6,629
              
              $
              750Real
                  Estate Reported EBITDA excluding stock-based compensation
              $
              7,723
              
              $
              1,531
  
 
 **Vail
                  Resorts, Inc.****Resort
                  Revenue by Business Line and Skier Visits****(In
                  thousands)****(Unaudited)****Three
                  Months Ended**
              **Percentage**
              
              **Six
                  Months Ended**
              **Percentage****January
                  31,**
              **Increase**
              
              **January
                  31,**
              **Increase****2007**
              **2006**
              **(Decrease)**
              
              **2007**
              **2006**
              **(Decrease)****Business
                  Line**Lift
                  tickets
              
              $
              128,617
              
              $
              113,468
              
              13.4
              
              %
              
              $
              128,617
              
              $
              113,468
              
              13.4
              
              %Ski
                  school
              
              
              34,198
              
              
              30,752
              
              11.2
              
              %
              
              
              34,198
              
              
              30,752
              
              11.2
              
              %Dining
              
              
              22,468
              
              
              21,266
              
              5.7
              
              %
              
              
              26,354
              
              
              24,772
              
              6.4
              
              %Retail/rental
              
              
              63,291
              
              
              56,913
              
              11.2
              
              %
              
              
              87,809
              
              
              78,618
              
              11.7
              
              %Other
              
              
              23,452
              
              
              23,829
              
              (1.6
              )
              %
              
              
              41,211
              
              
              38,895
              
              6.0
              
              %**Total
                  Mountain Revenue**
              
              $
              272,026
              
              $
              246,228
              
              10.5
              
              %
              
              $
              318,189
              
              $
              286,505
              
              11.1
              
              %**Total
                  Lodging Revenue**
              
              $
              32,796
              
              $
              32,079
              
              2.2
              
              %
              
              $
              73,204
              
              $
              73,829
              
              (0.8
              )
              %**Total
                  Resort Revenue**
              
              $
              304,822
              
              $
              278,307
              
              9.5
              
              %
              
              $
              391,393
              
              $
              360,334
              
              8.6
              
              %**Three
                  Months Ended**
              **Percentage**
              
              **Six
                  Months Ended**
              **Percentage****January
                  31,**
              **Increase**
              
              **January
                  31,**
              **Increase****2007**
              **2006**
              **(Decrease)**
              
              **2007**
              **2006**
              **(Decrease)****Skier
                  Visits**Vail
              
              
              725
              
              
              753
              
              (3.7
              )
              %
              
              
              725
              
              
              753
              
              (3.7
              )
              %Breckenridge
              
              
              774
              
              
              755
              
              2.5
              
              %
              
              
              774
              
              
              755
              
              2.5
              
              %Keystone
              
              
              598
              
              
              547
              
              9.3
              
              %
              
              
              598
              
              
              547
              
              9.3
              
              %Heavenly
              
              
              407
              
              
              434
              
              (6.2
              )
              %
              
              
              407
              
              
              434
              
              (6.2
              )
              %Beaver
                  Creek
              
              
              408
              
              
              386
              
              5.7
              
              %
              
              
              408
              
              
              386
              
              5.7
              
              %**Total
                  Skier Visits**
              
              
              2,912
              
              
              2,875
              
              1.3
              
              %
              
              
              2,912
              
              
              2,875
              
              1.3
              
              %**Effective
                  Ticket Price**
              
              $
              44.17
              
              $
              39.47
              
              11.9
              
              %
              
              $
              44.17
              
              $
              39.47
              
              11.9
              
              %
 
 
 **Key
                  Balance Sheet Data****(In
                  thousands)****(Unaudited)****As
                  of January 31,****2007**
              
              **2006**Real
                  estate held for sale and investment
              
              $
              293,219
              
              $
              221,048Total
                  stockholders' equity
              
              
              658,421
              
              
              586,638Long-term
                  debt
              
              
              551,866
              
              
              517,638Long-term
                  debt due within one year
              
              
              440
              
              
              5,673Total
                  debt
              
              
              552,306
              
              
              523,311Less:
                  cash and cash equivalents
              
              
              254,866
              
              
              175,541Net
                  debt
              
              $
              297,440
              
              $
              347,770
 
 
  
  
 **Reconciliation
        of Non-GAAP Financial Measures**
 
 Resort,
        Mountain, Lodging and Real Estate Reported EBITDA and Resort, Mountain, Lodging
        and Real Estate Reported EBITDA excluding stock-based compensation have been
        presented herein as measures of the Company's financial operating performance.
        Reported EBITDA, Reported EBITDA excluding stock-based compensation and Net
        Debt
        (defined as long-term debt plus long-term debt due within one year less cash
        and
        cash equivalents) are not measures of financial performance or liquidity
        under
        accounting principles generally accepted in the United States of America
        ("GAAP"), and they might not be comparable to similarly titled measures.
        Reported EBITDA, Reported EBITDA excluding stock-based compensation and Net
        Debt
        do not purport to represent cash flows generated by operating, investing
        or
        financing activities or other financial statement data and should not be
        considered in isolation or as a substitute for measures of financial performance
        or liquidity prepared in accordance with GAAP. The Company believes that
        Reported EBITDA and Reported EBITDA excluding stock-based compensation are
        indicative measures of the Company's operating performance, and each similar
        to
        performance metrics generally used by investors to evaluate companies in
        the
        resort and lodging industries. The Company primarily uses Reported EBITDA
        excluding stock-based compensation targets in determining management
        bonuses.
  
  Presented
        below is a reconciliation of Reported EBITDA and Reported EBITDA excluding
        stock-based compensation to net income for the Company calculated in accordance
        with GAAP for the three and six months ended January 31, 2007 and 2006.
 **(In
                  thousands)****Three
                  Months Ended****January
                  31,****(Unaudited)****2007**
              
              **2006**Mountain
                  revenue, net
              $
              272,026
              
              
              $
              246,228Mountain
                  operating expense excluding stock-based compensation
              
              (158,814
              )
              
              
              (149,667
              )Mountain
                  equity investment income, net
              
              1,496
              
              
              
              1,455Mountain
                  Reported EBITDA excluding stock-based compensation
              
              114,708
              
              
              
              98,016Mountain
                  stock-based compensation
              
              (1,057
              )
              
              
              (999
              )Mountain
                  Reported EBITDA
              
              113,651
              
              
              
              97,017Lodging
                  revenue, net
              
              32,796
              
              
              
              32,079Lodging
                  operating expense excluding stock-based compensation
              
              (30,536
              )
              
              
              (32,480
              )Lodging
                  Reported EBITDA excluding stock-based compensation
              
              2,260
              
              
              
              (401
              )Lodging
                  stock-based compensation
              
              (221
              )
              
              
              (414
              )Lodging
                  Reported EBITDA
              
              2,039
              
              
              
              (815
              )Resort
                  Reported EBITDA*
              
              115,690
              
              
              
              96,202Resort
                  Reported EBITDA excluding stock-based compensation*
              
              116,968
              
              
              
              97,615Real
                  Estate revenue, net
              
              56,216
              
              
              
              9,709Real
                  Estate operating expense excluding stock-based
                  compensation
              
              (49,905
              )
              
              
              (5,982
              )Real
                  Estate equity investment income
              
              --
              
              
              
              31Real
                  Estate Reported EBITDA excluding stock-based compensation
              
              6,311
              
              
              
              3,758Real
                  Estate stock-based compensation
              
              (486
              )
              
              
              (401
              )Real
                  Estate Reported EBITDA
              
              5,825
              
              
              
              3,357Total
                  Reported EBITDA
              
              121,515
              
              
              
              99,559Depreciation
                  and amortization
              
              (21,759
              )
              
              
              (21,431
              )Relocation
                  and separation charges
              
              (500
              )
              
              
              --Mold
                  remediation credit
              
              --
              
              
              
              852Loss
                  on disposal of fixed assets, net
              
              (10
              )
              
              
              (486
              )Investment
                  income
              
              2,417
              
              
              
              1,046Interest
                  expense, net
              
              (7,911
              )
              
              
              (9,502
              )Gain
                  on sale of businesses, net
              
              --
              
              
              
              4,625Contract
                  dispute charges
              
              (672
              )
              
              
              --Gain
                  on put options
              
              --
              
              
              
              1,026Other
                  income, net
              
              --
              
              
              
              51Minority
                  interest in income of consolidated subsidiaries, net
              
              (6,152
              )
              
              
              (5,231
              )Income
                  before provision for income taxes
              
              86,928
              
              
              
              70,509Provision
                  for income taxes
              
              (33,902
              )
              
              
              (27,498
              )Net
                  income
              $
              53,026
              
              
              $
              43,011
 * Resort
        represents the sum of Mountain and Lodging
  
  
 **(In
                  thousands)****Six
                  Months Ended****January
                  31,****(Unaudited)****2007**
              
              **2006**Mountain
                  revenue, net
              $
              318,189
              
              
              $
              286,505Mountain
                  operating expense excluding stock-based compensation
              
              (237,281
              )
              
              
              (221,003
              )Mountain
                  equity investment income, net
              
              2,331
              
              
              
              2,305Mountain
                  Reported EBITDA excluding stock-based compensation
              
              83,239
              
              
              
              67,807Mountain
                  stock-based compensation
              
              (2,077
              )
              
              
              (1,954
              )Mountain
                  Reported EBITDA
              
              81,162
              
              
              
              65,853Lodging
                  revenue, net
              
              73,204
              
              
              
              73,829Lodging
                  operating expense excluding stock-based compensation
              
              (66,552
              )
              
              
              (69,714
              )Lodging
                  Reported EBITDA excluding stock-based compensation
              
              6,652
              
              
              
              4,115Lodging
                  stock-based compensation
              
              (554
              )
              
              
              (821
              )Lodging
                  Reported EBITDA
              
              6,098
              
              
              
              3,294Resort
                  Reported EBITDA*
              
              87,260
              
              
              
              69,147Resort
                  Reported EBITDA excluding stock-based compensation*
              
              89,891
              
              
              
              71,922Real
                  Estate revenue, net
              
              83,138
              
              
              
              13,102Real
                  Estate operating expense excluding stock-based
                  compensation
              
              (75,415
              )
              
              
              (11,671
              )Real
                  Estate equity investment income
              
              --
              
              
              
              100Real
                  Estate Reported EBITDA excluding stock-based compensation
              
              7,723
              
              
              
              1,531Real
                  Estate stock-based compensation
              
              (1,094
              )
              
              
              (781
              )Real
                  Estate Reported EBITDA
              
              6,629
              
              
              
              750Total
                  Reported EBITDA
              
              93,889
              
              
              
              69,897Depreciation
                  and amortization
              
              (43,344
              )
              
              
              (40,354
              )Relocation
                  and separation charges
              
              (1,235
              )
              
              
              --Asset
                  impairment charge
              
              --
              
              
              
              (136
              )Mold
                  remediation credit
              
              --
              
              
              
              852Loss
                  on disposal of fixed assets, net
              
              (91
              )
              
              
              (726
              )Investment
                  income
              
              4,481
              
              
              
              2,234Interest
                  expense, net
              
              (16,847
              )
              
              
              (18,939
              )Gain
                  on sale of businesses, net
              
              --
              
              
              
              4,625Contract
                  dispute charges
              
              (4,276
              )
              
              
              --Gain
                  on put options
              
              --
              
              
              
              34Other
                  income, net
              
              --
              
              
              
              51Minority
                  interest in income of consolidated subsidiaries, net
              
              (4,363
              )
              
              
              (3,305
              )Income
                  before provision for income taxes
              
              28,214
              
              
              
              14,233Provision
                  for income taxes
              
              (11,004
              )
              
              
              (5,551
              )Net
                  income
              $
              17,210
              
              
              $
              8,682
 * Resort
        represents the sum of Mountain and Lodging
  
  Presented
        below is a reconciliation of net income excluding stock-based compensation,
        tax
        effected, to net income of the Company calculated in accordance with GAAP
        for
        the three and six months ended January 31, 2007 and 2006. Also presented
        is a
        reconciliation of net income per diluted share excluding stock-based
        compensation, tax effected, to net income per diluted share of the Company
        calculated in accordance with GAAP for the three and six months ended January
        31, 2007 and 2006. The Company has presented these non-GAAP measures as it
        believes that this presentation provides a more comparable measure of the
        Company's historical results from ongoing operations for the three and six
        months ended January 31, 2007 and January 31, 2006 to prior
        periods.
 
 **Three
                  Months****Ended
                  January 31,****(Unaudited)**(In
                  thousands, except per share amounts)
              
              **2007**
              
              **2006**Net
                  income excluding stock-based compensation
              
              $
              54,121
              
              
              $
              44,144Stock-based
                  compensation expense, before benefit from income taxes
              
              
              (1,764
              )
              
              
              (1,814
              )Adjustment
                  for benefit from income taxes
              
              
              669
              
              
              
              681Net
                  income
              
              $
              53,026
              
              
              $
              43,011Diluted
                  net income per share excluding stock-based compensation
              
              $
              1.38
              
              
              $
              1.15Stock-based
                  compensation expense per diluted common share, before
                  benefitfrom
                  income taxes
              
              
              (0.04
              )
              
              
              (0.05
              )Adjustment
                  for benefit from income taxes, per diluted common share
              
              
              0.02
              
              
              
              0.02Diluted
                  net income per share
              
              $
              1.35
              
              
              $
              1.12**Six
                  Months****Ended
                  January 31,****(Unaudited)**(In
                  thousands, except per share amounts)
              
              **2007**
              
              **2006**Net
                  income excluding stock-based compensation
              
              $
              19,522
              
              
              $
              10,902Stock-based
                  compensation expense, before benefit from income taxes
              
              
              (3,725
              )
              
              
              (3,556
              )Adjustment
                  for benefit from income taxes
              
              
              1,413
              
              
              
              1,336Net
                  income
              
              $
              17,210
              
              
              $
              8,682Diluted
                  net income per share excluding stock-based compensation
              
              $
              0.50
              
              
              $
              0.29Stock-based
                  compensation expense per diluted common share, before
                  benefitfrom
                  income taxes
              
              
              (0.10
              )
              
              
              (0.09
              )Adjustment
                  for benefit from income taxes, per diluted common share
              
              
              0.04
              
              
              
              0.03Diluted
                  net income per share
              
              $
              0.44
              
              
              $
              0.23
 
 
 
  
   A
        reconciliation of the low and high ends of the forecasted guidance range
        given
        for Reported EBITDA and Reported EBITDA excluding stock-based compensation
        for
        the Company's fiscal year ending July 31, 2007 is presented below.
 **(In
                  thousands)****For
                  the Year Ending****July
                  31, 2007****Low
                  End Range**
              
              **High
                  End Range**Resort
                  Reported EBITDA excluding stock-based compensation(1)
              $
              216,000
              
              
              $
              224,000Resort
                  segment stock-based compensation
              
              (5,000
              )
              
              
              (5,000
              )Resort
                  Reported EBITDA(1)
              
              211,000
              
              
              
              219,000Real
                  Estate Reported EBITDA excluding stock-based compensation
              
              (3,000
              )
              
              
              2,000Real
                  Estate segment stock-based compensation
              
              (2,000
              )
              
              
              (2,000
              )Real
                  Estate Reported EBITDA
              
              (5,000
              )
              
              
              --Total
                  Reported EBITDA
              
              206,000
              
              
              
              219,000Depreciation
                  and amortization
              
              (85,500
              )
              
              
              (85,500
              )Relocation
                  and separation charges
              
              (1,500
              )
              
              
              (1,400
              )Loss
                  on disposal of fixed assets, net
              
              (550
              )
              
              
              (550
              )Investment
                  income
              
              11,000
              
              
              
              11,200Interest
                  expense, net
              
              (34,000
              )
              
              
              (34,000
              )Loss
                  on sale of business, net
              
              (800
              )
              
              
              (800
              )Contract
                  dispute credit, net(2)
              
              4,300
              
              
              
              4,300Gain
                  on put options, net
              
              700
              
              
              
              700Minority
                  interest in income of consolidated subsidiaries, net
              
              (8,800
              )
              
              
              (9,100
              )Income
                  before provision for income taxes
              
              90,850
              
              
              
              103,850Provision
                  for income taxes
              
              (35,400
              )
              
              
              (40,500
              )Net
                  income
              $
              55,450
              
              
              $
              63,350
 (1)
            Resort
                represents the sum of Mountain and Lodging. The Company provides
                Reported
                EBITDA ranges for the Mountain and Lodging segments, as well as for
                the
                two combined. Readers are cautioned to recognize that the low end
                of the
                expected ranges provided for the Lodging and Mountain segments, while
                possible, do not sum to the low end of the Resort Reported EBITDA
                range
                provided because we do not necessarily expect or assume that we will
                actually hit the low end of both ranges, as the actual Resort Reported
                EBITDA will depend on the actual mix of the Lodging and Mountain
                components. Similarly, the high end of the ranges for the Lodging
                and
                Mountain segments do not sum to the high end of the Resort
                range.  (2)
            Assumes
                receipt of $8.5 million judgment on or before July 31, 2007, as part
                of
                the damage award won against Cheeca Holdings
                LLC. 
 A
        reconciliation of the low and high ends of the forecasted guidance range
        given
        for net income excluding stock-based compensation for the Company's fiscal
        year
        ending July 31, 2007 is presented below.
 **(In
                  thousands)****For
                  the Year Ending****July
                  31, 2007****Low
                  End Range**
              
              **High
                  End Range**Net
                  income excluding stock-based compensation
              $
              59,720
              
              
              $
              67,620Stock-based
                  compensation expense, before benefit from income taxes
              
              (7,000
              )
              
              
              (7,000
              )Adjustment
                  for benefit from income taxes
              
              2,730
              
              
              
              2,730Net
                  income
              $
              55,450
              
              
              $
              63,350