American Skiing Company announced the sale of the Killington and Pico Ski Resorts, plus all other properties in the Killington area including the Wobbly Barn to SP Land Company for $83.5M. The deal, which also includes the assumption of $5M in debt by SP Land is set to close by April 30. Public details of the transaction have been posted with the Securities and Exchange Commission and can be viewed in the SEC's Edgar database.

SP Land is an LLC who majority owner is Eiger Investments. SP Land was formed in 2004 to acquire the development rights to real estate in the Killington area to develop a Village and other properties at the base of Killington. It acquired the real estate, valued at $58.5M from American Skiing Company during a financial restructuring in May 2004. At the time, it was reported that Killington LTD, the operating company for the Killington Resort wholly owned at the time by ASC, held a 25% stake in SP Land.

While no other information on the sale has been provided publicly, we have been receiving calls from friends who work at the resort who have participated in meetings this morning to announce the transaction. Previously, it was rumored that Powdr Corp of Park City Utah would be purchasing Killington from ASC. While Powdr Corp is absent from any of the public pronouncements, employees are being told in some of the meetings that Powdr Corp will be brought in by SP Land to help operate the resort, after completion of the transaction in April.

It should be an interesting spring. Let it snow!

3:45 PM Update - Letter from B.J. Fair CEO of ASC to ASC Employees
with more information on sale and role of Powdr Corp

To: All ASC Employees
From: B.J. Fair
Date: 2/20/07
Re: Sale of Killington and Pico

It is with mixed emotions that I inform you that we have entered into a definitive agreement to sell the Killington and Pico resorts. We had hoped to announce this transaction simultaneously with Mount Snow and Attitash, however extended negotiations prevented us from doing so.

As was the case with our other recently announced sales, this decision was not made in haste nor ever taken lightly. Since our real estate restructuring in 2004, it became apparent that future real estate development at Killington and the resort operations would be best controlled by a single owner. Our ongoing discussions with SP Land and their current interest in the real estate at Killington led to their purchase of the Killington and Pico resorts for $83.5 million, plus $2 million of capital leases as well as other liabilities.

Though challenging from a personal and professional perspective, it is in the company's best interest to realize the opportunities created by the performance of our resorts and the current favorable market conditions. While parting with the Killington and Pico teams will be difficult for many of us, the value created for the company's stakeholders is tremendous and will leave us with substantial liquidity to focus on our remaining operations in Maine and Utah. As I wrote to you on Friday, the sale of five of our resorts will have a significant impact on our organization. I want to reiterate that we are aware of these impacts, and we will be meeting with employees as soon as possible to discuss these changes.

The transaction is expected to close by the end of April. Concurrent with the closing, SP Land and Powdr Corp. will have formed a new venture to operate Killington and Pico. Powdr Corp., based in Park City, UT, is an established operator of six winter resorts in the western U.S. Prior to the close of the sale, Killington and Pico and all of our other resorts will continue to operate under the normal course of business without interruption. We will work with the SP Land and Powdr teams during this period to facilitate a smooth transition at Killington and Pico.

With winter a bit late in arriving in the East, many guests will be arriving for the first time at our resorts in the coming days. Our guests have come to expect a very high standard of each of our resorts, and we will continue to offer the same service that has become of hallmark of ASC. Again, I am counting on your professionalism, consideration and support as we work through this transition period. Thank you.

B.J. Fair
President and CEO