October 5, 2005

VANCOUVER (CP) - Intrawest Corp. has sold most of its majority interest in the Mammoth Mountain ski resort in California to an American firm in a $365 million US deal.

A firm controlled by Starwood Capital Group Global, L.L.C. - based in Greenwich, Conn. - bought property in an agreement that leaves Intrawest with a minority equity interest and role in ongoing resort operations and lodging management. Intrawest's retained interest is anticipated to be approximately 15 per cent, the Vancouver-based company said in a release late Tuesday.

It had a 59.5 per cent interest in the resort prior to the deal, which is expected to close within 90 days, Intrawest said.

"It is clearly in Intrawest's best interest to monetize a portion of this value now," Intrawest's chairman, president and chief executive officer Joe Houssian said in the release.

"We believe Mammoth Mountain represents one of the great growth

opportunities in the year-round resort business in North America and therefore we will retain an equity interest in the resort and a 50 per cent interest in Mammoth Hospitality Management, our lodging company at Mammoth."

Intrawest said it also has a preliminary agreement with Starwood to jointly develop the majority of Intrawest's real estate in the town of Mammoth Lakes, which includes 1,000 residential units and 30,000 square feet of commercial space scheduled to be built out over the next five to seven years.

The proposed transaction from the sale of Mammoth Mountain will result in a pre-tax profit to Intrawest of approximately $101 million, the company said. Pre-tax net proceeds to Intrawest after estimated debt assumed, working capital adjustments, transaction costs and reinvestment in Mammoth Mountain are approximately $166 million, including a pre-transaction dividend.

Although the initial use of proceeds will be to pay down debt, Intrawest said it is evaluating all of its options for the best use of proceeds.

Last month, Intrawest said it planned to sell its five stand-alone golf courses and recorded a fourth-quarter writedown of the assets of $17.6 million. The company said it expects a return of its investment of about $35 million in the courses hopefully over the next year.

The company's executives also said adverse weather last winter reduced the company's operating results by between $20 million and $25 million.

Largely due to the writedown, the company lost $21.5 million US or 45 cents a share in the fiscal fourth quarter ended June 30, compared with a profit of $2.6 million US or five cents a share a year earlier.

Intrawest (TSX:ITW) reported a profit of $32.6 million or 68 cents per share on revenue of $1.68 billion for its 2005 financial year. That compared with a profit of $59.9 million or $1.25 per share on revenue of $1.55 billion a year ago.

The firm has interests in 10 resorts at popular North American mountain destinations, including Whistler Blackcomb, a host venue for the 2010 Winter Olympic and Paralympic Games. Intrawest owns Canadian Mountain Holidays, one of the largest heli-skiing operations in the world.

For more information go to www.intrawest.com