VAIL RESORTS DROPS DRUG TESTING

In a reversal of policy, Vail Resorts is reducing or eliminating drug
testing requirements and relaxing some grooming standards at Breckenridge
and Keystone ski areas. No pre-employment drug testing will be performed
for the 2000/01 season at either ski area, according to Rick Smith, vice
president of human resources at Breckenridge, and Keystone sources.

"We thought that money could be better spent on guest services training,
more recruiting, advertising and job fairs," Smith said. Breckenridge Ski
Resort spent about $150,000 per year on drug testing and, contrary to
popular belief, didn't get a break on insurance rates due to drug testing
because the company is self-insured for worker compensation.

Smith said the company did not find a significant amount of drug use at the
resort in six years of testing all new hires. New hires failing the
pre-employment test ran about 2 to 4 percent, most for marijuana use.
Random drug tests for continuing employees had a failure of only 1 percent.

Random drug testing will still be performed at Keystone and at either ski
area under "reasonable suspicion," such as an accident.

Due to employee feedback, grooming standards are also being relaxed at the
ski resorts. For the first time in years, long hair in ponytails for men
will be allowed at Breck and on a case-by-case basis at Keystone - no
dreads though. Men will also be allowed to have one earring. For women, the
earring rule for more than two is on a case-by-case basis.

"We want to be kind of hip with the times, but we want to present a clean
look to the guest," Smith said.

Hair still cannot be colored other than a "natural" color, but beards will
be allowed on a department-by-department basis, for instance, beards will
be allowed on ski patrol but not in hospitality.

It was Breckenridge ski patrollers who complained loudly the first year of
beard bans, arguing that beards helped keep their faces warm.

Smith said the relaxation in grooming standards is a direct result of
employee dissatisfaction that has been expressed in the annual employee
surveys and a re-thinking of the company's strict management policies.

"It's an attempt by us to listen to employees and be flexible," Smith said.