Mont Saint-Sauveur International Inc. posts one of the most successful quarters in its history.

SAINT-SAUVEUR-DES-MONTS, Quebec--(BUSINESS WIRE)--March 26, 1996--Mont Saint-Sauveur International Inc. (ME:MSX.A) has just ended one of the most successful quarters in its history.

Indeed, from all points of view, the most recent three-month period was the best since the record third quarter of 1987-1988. Building on the momentum created by the early arrival of winter, the season got off to an exceptional start thanks to an extremely effective marketing strategy built around a powerful television advertising campaign and our success in selling our six resorts' individual "personalities" within their respective target markets.

The third quarter ended January 28, 1996, thus generated $14.2 million in revenue, a 16 percent increase over the $12.2 million posted for the corresponding quarter in 1994-1995. Income before amortization, interest and income tax leapt ahead by 32 percent between the two quarters, expanding from $3.7 million to $4.8 million. This contributed to a 31 percent increase in third- quarter net income, which grew to almost $1.8 million ($0.21 per share), compared with $1.3 million ($0.16 per share) a year earlier.

Overall, during the first nine months of 1995-1996, the Company generated $21.8 million in revenue, 22 percent improvement over the $17.8 million for the corresponding period in 1994-1995. Our profit before amortization, interest and income tax increased by 94 percent, bounding ahead from $1.4 million to $2.8 million, and we reduced our net loss for the nine-month period by 28 percent, from $936,000 ($0.11 per share) to $676,000 ($0.08 per share).

The first nine months of the current fiscal year were thus dominated by impressive growth under all headings, despite a $626,000 increase in financial expenses, which rose form $1.7 million to $2.3 million between the two periods under comparison. When considered along with the 180-degree turnaround in profit before interest and income tax, thanks to which a $100,000 negative balance was transformed into a $1.2 million surplus, these figures give a clear picture of our recent acquisition of Ski Mont-Gabriel and Mont Olympia - acquisitions that have proven to be pertinent and wise, and which have already contributed very positively to our consolidated results.

Above all, our more-than-satisfactory third quarter has firmed up the Company's bottom line. In keeping with our early-repayment strategy, we pared back our long-term debt term debt more than compensated for a $1.2 million increase under this heading between the two periods under comparison. Our main financial ratios - our leading indicators - thus remained at highly satisfactory levels: working capital was positive, our capital assets to long-term debt ratio was 1.5:1, and our ratio of long- term debt to capital sources dipped to 2.1:1.

This brief overview would be incomplete without an advance look at the current fourth quarter. In the light of our lower-than- forecast February results, it seems clear that we will have trouble maintaining our "cruising speed" during the closing three months of 1995-1996. Normally the most stable month of the season, February was marred this year by a spell of exceptionally warm weather - the second such occurrence in as many months. The negative impact of these unseasonable temperatures has been felt throughout the ski industry. We will therefore have to wait for our results for March and April to determine whether our impressive winter start will allow us to end the current year in style or with a merely satisfactory bottom line.

CONTACT: Mont Saint-Sauveur International Inc.

Jacques G. Hebert, FCA 

Chairman of the Board

President and Chief Executive Officer

514/871-0101