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• Further execution of real estate joint venture business model delivers positive free cash flow
• Geographic and business line diversification provides offsets to impact of adverse winter weather at British Columbia ski operations

Vancouver,British Columbia - Intrawest Corporation, one of the world’s leading destination resort and adventure-travel companies, announced today its results for the fiscal year ended June 30, 2005.

“The strong performance of Abercrombie & Kent, the newest member of Intrawest’s portfolio, was very gratifying and it speaks to the power of its brand,” said Joe Houssian, chairman, president and chief executive officer. “We are also pleased at the acceleration and expansion of our partnering strategy in all phases of real estate development. The joint ventures that we entered into in the fourth quarter are great examples of how this strategy is paying off for our shareholders.”

Fiscal 2005 Year End Highlights

• Record total revenue of $1.68 billion compared with $1.55 billion in 2004
• Total Company EBITDA of $243.1 million, versus $268.3 million the previous year
• Strong contribution from Abercrombie & Kent and record results at most of our non-British Columbia resorts offset the impact of the worst weather in 40 years at our British Columbia resort operations
• Net income of $32.6 million after reflecting a non-recurring expense of $30.2 million to refinance high interest rate senior notes. Going forward, this refinancing is expected to save us approximately $15 million per annum. Net income also reflects a non-recurring write-down of $17.6 million on our non-resort golf properties, resulting from a strategic decision to focus our golf business on resort-based and branded operations. This compares with net income of $59.9 million in 2004 after reflecting a non-recurring call premium of $12.1 million to refinance senior notes
• Earnings per share on a diluted basis were $0.68 ($1.68 before non-recurring items) versus $1.25 ($1.48 before non-recurring items) in 2004
• Real estate joint venture and sale transactions in the fourth quarter contributed to full year positive free cash flow of $62 million
• Strong balance sheet with year-end Net Debt to EBITDA ratio of 3.6 times, well within target leverage range “We have made a commitment to our shareholders to maintain our strong balance sheet and to grow with financial discipline,” said John Currie, chief financial officer. “Our 2005 results reflect the successful execution of our financial strategies to deliver on this promise.”

MANAGEMENT’S DISCUSSION AND ANALYSIS
(All dollar amounts are in United States currency, unless otherwise indicated)

The following is an extract of the operations and liquidity and capital resources sections of Management’s Discussion and Analysis (“MD&A”) for the year ended June 30, 2005. The full text of the MD&A will be included in our Annual Information Form and other corporate filings.

SUMMARY OF FISCAL 2005 OPERATIONS

Fiscal 2005 was a year of both challenges and achievements. Our mountain resorts experienced mixed results as generally good weather conditions in the East and the U.S. west were offset by the most unfavourable weather conditions for the ski industry in 40 years in British Columbia. Sandestin was also tested by the weather, particularly in our first fiscal quarter when several hurricanes impacted its operations. The results of Abercrombie & Kent (“A&K”), during our first year of ownership, far exceeded our expectations as the luxury travel tour business rebounded from several years of contraction brought on by economic and geo-political events. We saw significant growth in our management services businesses in 2005 and demand for our real estate was strong across our resorts. Operating profit from real estate development declined in 2005, as expected, after an unusually high number of closings in 2004 due to the timing of project completions.

These factors combined to reduce Total Company EBITDA to $243.1 million in 2005 from $268.3 million in 2004. After several years of disappointing returns from our stand-alone golf courses, we made the decision to exit this business and reinvest our capital in higher returning businesses. As a result, we had our stand-alone golf operations appraised and recorded a write-down of $17.6 million. We improved our capital structure and lowered our borrowing costs by refinancing $394.4 million of senior notes in 2005, on top of the $200 million of senior notes that we refinanced in 2004. The call premium and other costs to redeem senior notes amounted to $30.2 million in 2005, up from $12.1 million in 2004. The golf asset write-down and refinancing expenses lowered our net income in 2005 to $32.6 million ($0.68 per diluted share) from $59.9 million ($1.25 per diluted share) in 2004.

We were very successful in 2004 in generating free cash flow and reducing our debt. This success continued in 2005 as we increased cash flow from our operating businesses and completed a number of transactions with real estate partners enabling us to realize $62.1 million of free cash flow.

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For additional information contact:

John Currie

Chief Financial Officer

(604) 669-9777

Tim McNulty

Director, Investor Relations

(604) 623-6620

tmcnulty@intrawest.com
 
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