Howard Katkov Leads Purchase of Red Mountain Resort.

Business Editors/Travel Writers

ROSSLAND, British Columbia--(BUSINESS WIRE)--June 3, 2004

Rossland, British Columbia, Ski Area to Add Lodging, On-Mountain

Amenities and Lifts, While Expanding Skiable Terrain from 1,200 Acres

(486 Hectares) to 4,200 Acres (1700 Hectares)

Red Mountain Resort announced today that the Canadian ski area known for its best-in-the-world tree skiing and plentiful powder has been sold to a private investment group led by Howard Katkov of San Diego, Calif. The sale was contingent on a recently approved official community plan that will guide future development at the resort. The purchase price was not disclosed.

The new ownership group plans to construct 1,300 dwelling units and 70,000 square feet of commercial space at Red Mountain over the next 15 years. Plans for immediate on-mountain improvements are also in the works. This summer, a "magic carpet" conveyor system will be installed that will provide beginner skiers and snowboarders with their first introduction to the sport -- without the use of a chairlift. Other initial improvements include the development of a terrain park and the expansion and remodeling of Paradise Lodge.

A high priority for new Red Mountain Ventures president and CEO, Howard Katkov, will be to expand the resort's beginner and intermediate terrain and to reinvigorate the alpine base area. In addition to the magic carpet, Katkov plans to install new lifts and enhance existing trails to broaden the novice and intermediate experience at the resort within the next two years. Additionally, a new skier-services center and two to three other multi-unit lodges will be constructed in the base area. These new buildings will establish a design standard and create a focal point for future development at Red Mountain.

"Red is a magical place with an unquestionably promising future," said Katkov. "Integral to any expansion plans is our continued, strong connection to the community of Rossland. The town is a huge part of what makes Red like no other destination in North America."

Katkov, a longtime skier and part-time Rossland resident, has been impressed by the Red Mountain skiing experience since he first visited the resort in 2000. He believes the resort's abundant dry powder, diverse terrain, and close connection to the historical city of Rossland elevate Red Mountain above the competition.

"The people who live and work in Rossland have greatly supported Red and this change in ownership. We'll do our best to continue to earn their trust," added Katkov. Katkov said he plans to reinvest earnings from Red Mountain Ventures into the various projects that will improve on-mountain facilities and guest amenities.

About Red Mountain Resort

Red Mountain, in southeastern British Columbia, is 10 minutes north of the Canada/U.S. border and five minutes from the community of Rossland. The resort offers an infinite number of runs that descend 2,900 vertical feet (884 meters) through best-in-the-world tree skiing and wide open glades of untouched powder. More information about Red Mountain is available at www.ski-red.com.