Mont Saint-Sauveur International Inc. Posts Higher Earnings.

SAINT-SAUVEUR, Quebec -- Our 2004-2005 winter season got off to a good start. Snow fell before Christmas and 100% of our slopes were ready to welcome skiers and snowboarders over the holidays. Attendance was high, with all of our resorts chalking up excellent early-season results.

For the third quarter ended January 23, 2005, the Company posted revenue of $26.5 million, compared with $20 million for the corresponding quarter a year earlier. Other than our resorts' financial performance, this 32% increase may be explained by sustained real estate sales, particularly at Jay Peak, Vermont.

The fact that real estate construction accounted for a higher share of our overall results than the leisure sector led to a change in our cost structure between the two quarters under comparison. The shift in the relative weights of the two sectors meant that the increase in our net earnings, which rose by 15%, from $2.8 million ($0.37 per share) to $3.2 million ($0.43), was lower than the increase in sales.

For the first nine months of 2004-2005, sales added up to a record $40.4 million - a 32.5% improvement over our $30.5 million sales figure for the corresponding nine months a year earlier. The increase may be explained mainly by higher real estate sales. Our bottom line shows an 83% improvement in net earnings, which surged ahead from $499,583 ($0.07 per share) to $917,751 ($0.12) - another corporate record.

The season is off to a great start and the fourth quarter looks highly promising. There is reason to hope that we can repeat the performance chalked up during our previous fourth quarter and meet our operating targets.

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Mont Saint-Sauveur International Inc. (TSX VENTURE:MSX.A)