AMERICAN SKIING COMPANY TO MERGE SUBSIDIARIES

Source: American Skiing Company

July 20, 1999
NEWRY, Maine-- American Skiing Company (NYSE: SKI - news) today announced that the Company is pursuing a consent solicitation from holders of the ASC East, Inc. $120 million 12% senior subordinated notes due 2006.

The consent solicitation is being conducted in preparation for closing of the recently announced $150 million convertible preferred equity investment by Oak Hill Capital Partners.

The consent solicitation seeks bondholder approval to combine ASC East, Inc. and ASC West, Inc., two operating subsidiaries, with the parent company to form a single holding company. The merger of these entities would substantially streamline and simplify the Company's capital structure.

For copies of documents or technical assistance in participating in the consent solicitation, holders of the ASC East, Inc. notes should contact the solicitation agent, Donaldson, Lufkin & Jenrette, at 212-892-2262.

Headquartered in Newry, Maine, American Skiing Company is the largest operator of alpine ski, snowboard and golf resorts in the United States. Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada.

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Please refer to the 'Risk Factors' included in the form 10-K dated October 27, 1998 and the form 10-Q dated June 9, 1999, on file with the Securities and Exchange Commission.