Booth Creek Ski Holdings, Inc. Announces Agreement in Principle to Sell Grand Targhee to George Gillett and Family.

Business Editors

ALTA, Wyo.--(BUSINESS WIRE)--March 16, 2000

Booth Creek Ski Holdings, Inc. has reached an agreement in principle to sell Grand Targhee Ski and Summer Resort to Booth Creek chairman George N. Gillett, Jr. and his family.

"We firmly believe in the future of Grand Targhee; however, the investment horizon to complete the development of the resort is a long one," said Chris Ryman, president and chief operating officer of Booth Creek. "Booth Creek has substantial growth opportunities at its other resorts, particularly at Northstar-at-Tahoe, our largest property. The sale of Grand Targhee will allow us to reallocate resources and accelerate these opportunities within our company."

As previously announced, Northstar has entered into an agreement with East West Partners, Inc., a Colorado-based real estate development company, to form a joint venture to develop about 2,000 multi-family units and associated commercial space on land within the Northstar-at-Tahoe resort.

The sale of Grand Targhee is expected to close in May. Completion of the sale is subject to final documentation and various closing conditions. The purchase price for the resort is $11 million, and is subject to certain closing adjustments.

Booth Creek announced Wednesday that it is soliciting consent to amend the indenture under which its 12.5 percent senior notes due March 15, 2007, were issued. The primary purpose of this consent solicitation is to allow Booth Creek and East West Partners to enter into a joint venture to advance the completion of Northstar-at-Tahoe's real estate and mountain development plan.

Further, the consent of the holders of the senior notes will allow Gillett to reduce his management responsibilities with Booth Creek in order to pursue other investment interests, including Grand Targhee. It will further allow the responsibility of Booth Creek's strategic direction and operations to be transitioned to Ryman and his management team.

Booth Creek Ski Holdings was formed in 1996 by Gillett in partnership with John Hancock Life Insurance Company and affiliates of Canadian Imperial Bank of Commerce (CIBC). Upon the close of the Grand Targhee sale, Booth Creek will consist of seven resorts across the United States, including Northstar-at-Tahoe, Sierra-at-Tahoe and Big Bear Mountain in California; Waterville Valley, Cranmore Mountain Resort and Loon Mountain in New Hampshire; and The Summit at Snoqualmie near Seattle, Wash. Booth Creek remains the fourth-largest ski resort operator in the country (www.boothcreek.com).

"This is a win-win business opportunity," said Gillett, "allowing my family and me to work with Grand Targhee and the community to develop a very special resort, while giving Chris -- one of the most dynamic leaders in the ski industry -- the opportunity to oversee all future operations of Booth Creek's remaining seven resorts."

"The opportunity to reallocate resources within our company, while at the same time obtain a good steward and long-term owner for Grand Targhee, could not have worked out better," Ryman said. "George's vision and enthusiasm for the ski industry is unparalleled. I cannot envision a better owner for Grand Targhee."