----

**Exhibit      99.1**

**VAIL      RESORTS, INC.**

**NEWS      RELEASE**

**FOR      IMMEDIATE RELEASE**

**Vail      Resorts Contacts:**

**VAIL      RESORTS ANNOUNCES FISCAL 2007 FIRST QUARTER RESULTS**

| ·   | Financial                performance as expected in the seasonally low first quarter comprised                of                the months of August through                October. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Season                pass sales for the 2006/2007 ski season up 21% over same period in                the                prior year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strong                advance bookings provide momentum for the 2006/2007 ski                season. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Company                announces launch of membership sales for the Vail Mountain Club. |
|--------------------|-----------------------------------------------------------------------------------------|

**Mountain      Segment**

**Lodging      Segment**

**Resort      - Combination of Mountain and Lodging Segments**

**Real      Estate Segment**

**Total      Performance**

**Business      Commentary and Outlook**

*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** |
|                                                                          | **October                31,** |
|                                                                          | **2006** | **2005** |
| Net                revenue:                                                   |   |   |   |   |   |   |
| Mountain                                                                      | $ | 46,164 |   | $ | 40,277 |   |
| Lodging                                                                       |   | 40,408 |   |   | 41,750 |   |
| Real                estate                                                    |   | 26,922 |   |   | 3,393 |   |
| Total                net revenue                                              |   | 113,494 |   |   | 85,420 |   |
| Segment                operating expense:                                     |   |   |   |   |   |   |
| Mountain                                                                      |   | 79,487 |   |   | 72,291 |   |
| Lodging                                                                       |   | 36,349 |   |   | 37,641 |   |
| Real                estate                                                    |   | 26,118 |   |   | 6,069 |   |
| Total                segment operating expense                                |   | 141,954 |   |   | 116,001 |   |
| Other                operating expense:                                       |   |   |   |   |   |   |
| Depreciation                and amortization                                  |   | (21,585 | ) |   | (18,923 | ) |
| Relocation                and separation charges                              |   | (735 | ) |   | -- |   |
| Asset                impairment charges                                       |   | -- |   |   | (136 | ) |
| Loss                on disposal of fixed assets, net                          |   | (81 | ) |   | (240 | ) |
| Loss                from operations                                           |   | (50,861 | ) |   | (49,880 | ) |
| Mountain                equity investment income, net                         |   | 835 |   |   | 850 |   |
| Real                estate equity investment income, net                      |   | -- |   |   | 69 |   |
| Investment                income, net                                         |   | 2,063 |   |   | 1,188 |   |
| Interest                expense, net                                          |   | (8,936 | ) |   | (9,437 | ) |
| Contract                dispute charges                                       |   | (3,605 | ) |   | -- |   |
| Loss                on put options, net                                       |   | -- |   |   | (992 | ) |
| Minority                interest in loss of consolidated subsidiaries, net    |   | 1,790 |   |   | 1,926 |   |
| Loss                before benefit from income taxes                          |   | (58,714 | ) |   | (56,276 | ) |
| Benefit                from income taxes                                      |   | 22,899 |   |   | 21,947 |   |
| Net                loss                                                       | $ | (35,815 | ) | $ | (34,329 | ) |
|                                                                          |   |   |   |   |   |   |
| **Per                share amounts**:                                         |   |   |   |   |   |   |
| Basic                net loss per share                                       | $ | (0.93 | ) | $ | (0.93 | ) |
| Diluted                net loss per share                                     | $ | (0.93 | ) | $ | (0.93 | ) |
|                                                                          |   |   |   |   |   |   |
| **Other                Data:**                                                |   |   |   |   |   |   |
| Mountain                Reported EBITDA                                       | $ | (32,488 | ) | $ | (31,164 | ) |
| Mountain                Reported EBITDA excluding stock-based compensation    | $ | (31,468 | ) | $ | (30,209 | ) |
| Lodging                Reported EBITDA                                        | $ | 4,059 |   | $ | 4,109 |   |
| Lodging                Reported EBITDA excluding stock-based compensation     | $ | 4,392 |   | $ | 4,515 |   |
| Resort                Reported EBITDA                                         | $ | (28,429 | ) | $ | (27,055 | ) |
| Resort                Reported EBITDA excluding stock-based compensation      | $ | (27,076 | ) | $ | (25,694 | ) |
| Real                Estate Reported EBITDA                                    | $ | 804 |   | $ | (2,607 | ) |
| Real                Estate Reported EBITDA excluding stock-based compensation | $ | 1,412 |   | $ | (2,226 | ) |

| **Vail                Resorts, Inc.**              |
|----------------------------------------------------|
| **Resort                Revenue by Business Line** |
| **(In                thousands)**                  |
| **(Unaudited)**                                    |
|                                               |   |   |   |   |
|                                               |   | **Three                Months Ended** |   | **Percentage** |
|                                               |   | **October                31,** |   | **Increase** |
|                                               |   | **2006** |   |   | **2005** |   | **(Decrease)** |
| Lift                tickets                        | $ | -- |   | $ | -- |   | -- |   | % |
| Ski                school                          |   | -- |   |   | -- |   | -- |   | % |
| Dining                                             |   | 3,887 |   |   | 3,506 |   | 10.9 |   | % |
| Retail/rental                                      |   | 24,518 |   |   | 21,705 |   | 13.0 |   | % |
| Other                                              |   | 17,759 |   |   | 15,066 |   | 17.9 |   | % |
| **Total                Mountain Revenue**          |   | 46,164 |   |   | 40,277 |   | 14.6 |   | % |
|                                               |   |   |   |   |   |   |   |   |   |
| **Total                Lodging Revenue**           |   | 40,408 |   |   | 41,750 |   | (3.2 | ) | % |
|                                               |   |   |   |   |   |   |   |
| **Total                Resort Revenue**            | $ | 86,572 |   | $ | 82,027 |   | 5.5 |   | % |

| **Key                Balance Sheet Data**               |
|---------------------------------------------------------|
| **(In                thousands)**                       |
| **(Unaudited)**                                         |
|                                                    |   |   |
|                                                    |   | **October                31,** |
|                                                    |   | **2006** |   | **2005** |
| Real                estate held for sale and investment |   | $ | 301,781 |   | $ | 194,697 |
| Total                stockholders' equity               |   |   | 604,304 |   |   | 519,944 |
|                                                    |   |   |   |   |   |   |
| Long-term                debt                           |   |   | 542,990 |   |   | 524,174 |
| Long-term                debt due within one year       |   |   | 430 |   |   | 6,128 |
| Total                debt                               |   |   | 543,420 |   |   | 530,302 |
| Less:                cash and cash equivalents          |   |   | 117,311 |   |   | 58,692 |
| Net                debt                                 |   | $ | 426,109 |   | $ | 471,610 |

**Reconciliation      of Non-GAAP Financial Measures**

|                                                                                           | **(In                thousands)**     |
|------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                           | **Three                Months Ended** |
|                                                                                           | **October                31,**        |
|                                                                                           | **(Unaudited)**                       |
|                                                                                           | **2006**                              |   | **2005** |
| Mountain                revenue, net                                                           | $                                     | 46,164 |   |   | $ | 40,277 |   |
| Mountain                operating expense excluding stock-based compensation                   |                                  | (78,467 | ) |   |   | (71,336 | ) |
| Mountain                equity investment income, net                                          |                                  | 835 |   |   |   | 850 |   |
| Mountain                Reported EBITDA excluding stock-based compensation                     |                                  | (31,468 | ) |   |   | (30,209 | ) |
| Mountain                stock-based compensation                                               |                                  | (1,020 | ) |   |   | (955 | ) |
| Mountain                Reported EBITDA                                                        |                                  | (32,488 | ) |   |   | (31,164 | ) |
|                                                                                           |                                  |   |   |   |   |   |   |
| Lodging                revenue, net                                                            |                                  | 40,408 |   |   |   | 41,750 |   |
| Lodging                operating expense excluding stock-based compensation                    |                                  | (36,016 | ) |   |   | (37,235 | ) |
| Lodging                Reported EBITDA excluding stock-based compensation                      |                                  | 4,392 |   |   |   | 4,515 |   |
| Lodging                stock-based compensation                                                |                                  | (333 | ) |   |   | (406 | ) |
| Lodging                Reported EBITDA                                                         |                                  | 4,059 |   |   |   | 4,109 |   |
|                                                                                           |                                  |   |   |   |   |   |   |
| Resort                Reported EBITDA*                                                         |                                  | (28,429 | ) |   |   | (27,055 | ) |
| Resort                Reported EBITDA excluding stock-based compensation*                      |                                  | (27,076 | ) |   |   | (25,694 | ) |
|                                                                                           |                                  |   |   |   |   |   |   |
| Real                Estate revenue, net                                                        |                                  | 26,922 |   |   |   | 3,393 |   |
| Real                Estate operating expense excluding stock-based                compensation |                                  | (25,510 | ) |   |   | (5,688 | ) |
| Real                Estate equity investment income, net                                       |                                  | -- |   |   |   | 69 |   |
| Real                Estate Reported EBITDA excluding stock-based compensation                  |                                  | 1,412 |   |   |   | (2,226 | ) |
| Real                Estate stock-based compensation                                            |                                  | (608 | ) |   |   | (381 | ) |
| Real                Estate Reported EBITDA                                                     |                                  | 804 |   |   |   | (2,607 | ) |
| Total                Reported EBITDA                                                           |                                  | (27,625 | ) |   |   | (29,662 | ) |
| Depreciation                and amortization                                                   |                                  | (21,585 | ) |   |   | (18,923 | ) |
| Relocation                and separation charges                                               |                                  | (735 | ) |   |   | -- |   |
| Asset                impairment charges                                                        |                                  | -- |   |   |   | (136 | ) |
| Loss                on disposal of fixed assets, net                                           |                                  | (81 | ) |   |   | (240 | ) |
| Investment                income, net                                                          |                                  | 2,063 |   |   |   | 1,188 |   |
| Interest                expense, net                                                           |                                  | (8,936 | ) |   |   | (9,437 | ) |
| Contract                dispute charges                                                        |                                  | (3,605 | ) |   |   | -- |   |
| Loss                on put options, net                                                        |                                  | -- |   |   |   | (992) |   |
| Minority                interest in loss of consolidated subsidiaries, net                     |                                  | 1,790 |   |   |   | 1,926 |   |
| Loss                before benefit from income taxes                                           |                                  | (58,714 | ) |   |   | (56,276 | ) |
| Benefit                from income taxes                                                       |                                  | 22,899 |   |   |   | 21,947 |   |
| Net                loss                                                                        | $                                     | (35,815 | ) |   | $ | (34,329 | ) |

|                                                                                                               |   | **Three                Months Ended** |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|
|                                                                                                               |   | **October                31,**        |
|                                                                                                               |   | **(Unaudited)**                       |
| (In                thousands, except per share amounts)                                                            |   | **2006**                              |   | **2005** |
| Net                loss excluding stock-based compensation                                                         |   | $                                     | (34,591 | ) |   | $ | (33,241 | ) |
| Stock-based                compensation expense, before benefit from income taxes                                  |   |                                  | (1,961 | ) |   |   | (1,742 | ) |
| Adjustment                to benefit from income taxes                                                             |   |                                  | 737 |   |   |   | 654 |   |
| Net                loss                                                                                            |   | $                                     | (35,815 | ) |   | $ | (34,329 | ) |
|                                                                                                               |   |                                  |   |   |   |   |   |   |
| Diluted                loss per share excluding stock-based compensation                                           |   | $                                     | (0.89 | ) |   | $ | (0.90 | ) |
| Stock-based                compensation expense per diluted share, before benefit from income                taxes |   |                                  | (0.05 | ) |   |   | (0.05 | ) |
| Adjustment                to benefit from income taxes, per diluted share                                          |   |                                  | 0.02 |   |   |   | 0.02 |   |
| Diluted                net loss per share                                                                          |   | $                                     | (0.93 | ) |   | $ | (0.93 | ) |