American Skiing Company Announces the Sale of Heavenly Resort
                   as a Key Milestone in Restructuring Effort

       Company announces decision to retain ownership of Steamboat Resort



NEWRY, MAINE - March 26, 2002 -- American Skiing Company (OTC: AESK) announced
today that it had entered into a definitive agreement to sell its Heavenly ski
resort in South Lake Tahoe, California to Vail Resorts, Inc. The transaction,
when closed, will complete the debt reduction component of the Company's
previously announced restructuring program. The Company further reported that
its Board of Directors had decided not to proceed with the sale of its Steamboat
ski resort in Steamboat Springs, Colorado and will retain that premier resort.

"The sale of Heavenly represents a critical element of our restructuring plan to
significantly reduce debt and position the Company for future growth," said
American Skiing Company CEO B.J. Fair. "With this important transaction in
place, we can now focus on the fundamentals of our business and deliver the
highest quality ski and mountain resort vacation for our guests."

"While we initially identified Steamboat as the asset to be sold, it became
clear after discussions with our key lenders that the objectives of the
restructuring plan could not be fully realized through this transaction. In the
end, we determined that the Heavenly sale would better achieve our goals for
debt reduction and the overall restructuring plan," said Fair.

The sale of Heavenly completes a critical remaining element of the Company's
previously announced restructuring plan. Since announcing the plan in May 2001,
the Company has completed the following:

o    Implemented cost reductions and performance enhancements providing $5
     million in annual financial benefits, contributing to the best fourth
     quarter resort operating performance in the Company's history during fiscal
     2001, and significantly bolstered results during the current fiscal year;
o    Responded to a significantly changed economic environment early in the
     current fiscal year;
o    Closed and funded a financial restructuring that raised additional capital,
     amended the Company's senior credit facilities and restructured portions of
     its existing debt;
o    Completed the sale of the Sugarbush ski resort;
o    Signed a management consulting agreement with MeriStar Hotels & Resorts
     (NYSE: MMH) to improve the operating performance of lodging properties and
     enhance its national sales network; and
o    Accelerated the sale of its remaining New England quartershare real estate
     inventory through focused sales efforts and a successful auction at
     Attitash Bear Peak in New Hampshire.

Heavenly Sale

The gross sale price will be approximately $102 million for the resort and
associated real estate. Net proceeds from the sale will be used to reduce
American Skiing Company's debt. The transaction is subject to standard closing
conditions, including Hart-Scott-Rodino antitrust approval and consent of the
United States Forest Service, and is expected to close on or before June 30,
2002.

"We have worked closely with the people of South Lake Tahoe to promote the
region and revitalize the downtown core and made great strides in growing the
resort," continued Fair. "Although our decision to sell the resort was
difficult, we are confident that Vail is committed to the success of Heavenly
and will play an active role in the community. We are proud of our
accomplishments at Heavenly and our participation in the redevelopment of South
Lake Tahoe."

Steamboat

As a result of the Heavenly sale, the Company will retain ownership of the
Steamboat ski resort. The Company reported that it had decided not to proceed
with its previous plan to sell its Steamboat ski resort to Triple Peaks, LLC
after discussions with its lenders concluded that the transaction would not
achieve the objectives of the restructuring plan. The Company indicated that it
does not plan to seek another buyer for Steamboat.

"We realize that the events of the past few months have created a great deal of
uncertainty for our employees and the community of Steamboat Springs," said
Fair. "We are now in the position to focus on the future with Steamboat's
exceptional management team. We are committed to working with the local team and
the community to expand upon the traditions that have made Steamboat a
long-standing, world-class ski destination. We want the staff and community of
Steamboat to know that we are committed to providing the resources needed to
ensure the continued success of the resort."

As indicated in the Company's recently filed form 10-Q with the Securities and
Exchange Commission, the Company is in discussions with senior lenders under
both its resort and real estate credit facilities to restructure its borrowing
facilities to address future mandatory principal reductions, maximum borrowing
capacity and liquidity. Those discussions are not yet complete and until they
have been addressed, investors should continue to refer to the disclosures made
by the Company in its second quarter form 10-Q as filed with the Securities and
Exchange Commission on March 18, 2002.

Steamboat is recognized as one of the premier resort destinations in the world.
The resort and town of Steamboat Springs are most famous for their authentic
western heritage, world-class terrain, Champagne Powder(R) snow, Olympic
tradition, friendly staff and family programs. With 25 lifts and 142 trails
spread across 2,939 acres, Steamboat is one of the country's most popular ski
resorts, recording more than one million skier/rider visits annually and enjoys
the most recognized brand identities in the industry.

About American Skiing Company

Headquartered in Newry, Maine, American Skiing Company is one of the largest
operators of alpine ski, snowboard and golf resorts in the United States. Its
resorts include Killington and Mount Snow in Vermont; Sunday River and
Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; Steamboat in
Colorado; The Canyons in Utah; and Heavenly in California/Nevada. More
information is available on the Company's Web site, www.peaks.com.

This document contains both historical and forward-looking statements. All
statements other than statements of historical facts are, or may be deemed to
be, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). These
forward-looking statements are not based on historical facts, but rather reflect
American Skiing Company's current expectations concerning future results and
events. Similarly, statements that describe the Company's objectives, plans or
goals are or may be forward looking statements. Such forward-looking statements
involve a number of risks and uncertainties. American Skiing Company has tried
wherever possible to identify such statements by using words such as
"anticipate," "assume," "believe," "expect," "intend," "plan," and words and
terms similar in substance in connection with any discussion of operating or
financial performance. In addition to factors discussed above, other factors
that could cause actual results, performances or achievements to differ
materially from those projected include, but are not limited to, the following:
failure to fully implement the restructuring plan outlined in Company press
releases and documents on file with the Securities and Exchange Commission; the
Company's substantial leverage; restrictions on the Company's ability to access
sources of capital; changes in regional and national business and economic
conditions affecting both American Skiing Company's resort operating and real
estate segments; adverse weather conditions; failure to renew or refinance
existing financial liabilities and obligations or attain new outside financing;
and other factors listed from time-to-time in American Skiing Company's
documents filed by the Company with the Securities Exchange Commission. The
forward looking statements included in this document are made only as of the
date of this document and under section 27A of the Securities Act and section
21E of the Exchange Act, American Skiing Company does not have or undertake any
obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.






                                  www.peaks.com
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