Intrawest performs and operates rental management services for owners at ten of some of the best resorts around North America. All totaled, this amounts to over 5100 units and clearly shows we are committed to the lodging business at each of our resorts. Our size has allowed us to develop close relationships with various travel professionals around the world. These travel agents, tour operators and wholesalers have allowed us to dramatically increase the distribution network for our lodging product at each of our resorts. Our extensive database also allows us to market to past guests who have already experienced the variety of services we have to offer. We share this database amongst all of our resorts to allow our 'fans' to experience other Intrawest properties. For more information on Intrawest, visit our web site at www.intrawest.com.
 
The creation of The Village at Squaw Valley USA as a new operational and marketing entity within Intrawest brings an unprecedented commitment to marketing and sales in the Squaw Valley area. IHM and Intrawest have a well-funded marketing and sales program that is focused on achieving the highest occupancies and average daily rates possible. We have people that can provide the local knowledge to our marketing efforts and, combined with our corporate efforts, should provide the best one-two marketing team in the community. Guided by an aggressive marketing and direct sales program, and in cooperation with the Intrawest All Resorts marketing efforts, the new lodging in The Village at Squaw Valley USA offers an exciting opportunity.

As construction of The Village at Squaw Valley moves steadily forward and we earn a first class reputation for the existing operation, a pre-opening marketing and direct sales program is implemented for those homes being completed. We have a jump start on our direct sales campaign, establishing strong relationships with local central reservation agencies as well getting the word out to companies like Inghams and Virgin Holidays, two major British Tour Operators, as well as other major travel and tour companies. We have completed our first brochure and have begun an active campaign to attract guests to The Village at Squaw Valley USA through a new website, various regional ads, billboard advertising (on I-80 west of Squaw Valley), many distribution channels such as Expedia and WorldRes, and wide distribution of collateral materials. The installation of our Springer Miller System (SMS) Rental Management hardware and software went "live” on February 1, 2002. SMS, known as the “Mercedes” of rental management software programs and the standard for Intrawest Resort Operations, integrates directly with Intrawest’s online booking engine.

Owners participating in the IHM Rental Program will appreciate the results that only the combined efforts and budgets of Intrawest and all our travel partners can produce. Participating owners will be represented at many of the major national and international Tour and Travel Shows. Dedicated and shared Direct Sales Managers will focus their efforts on domestic and international tour operators, ski groups, and corporate meetings and incentive markets. Advertising will include national representation in the major ski, golf and travel industry publications and get regional representation through "drive-market newspapers" and Sunset Magazine, for example. Targeted direct mail programs utilizing Intrawest databases (now over 3 million people) will focus on ski enthusiasts and frequent resort visitors with introductory pieces and package promotions. The most significant element of this commitment is the drive to vastly expand the distribution channels and access to Squaw Valley's enhanced products and services. 
 
Cyberspace marketing has exploded in the past few years and so has Intrawest's commitment to creating and maintaining state-of-the-art web sites and on-line booking centers. On-line booking capabilities are part of Intrawest's marketing and distribution methods and account for a large amount of our bookings. Also, we are regularly sending e-mail broadcasts to over 10,000 people in the Bay area with household incomes over $100,000.
 
In addition, our resorts have begun an exciting and profitable relationship with Lexington Services, a company that will provide a link to the travel industry by a worldwide network of travel agencies and corporations that operate on the Global Distribution System (GDS). This means over 600,000 travel agent terminals worldwide will have the ability to electronically book our resorts. This will also mean connectivity to an extensive network of Internet distribution partners such as WorldRes, TravelWeb, Travelocity, Expedia, LeisurePlanet and Preview Travel.
 
We've hired a Public Relations Firm, Lyman Publications, on a monthly retainer to promote The Village and they have proven their worth by securing feature articles in the San Francisco Chronicle, the San Jose Mercury News, the Sacramento Bee, the Dallas Morning News, and Skiing Magazine to name a few. We will also be participating in the Preferred Lodging program of a select few, leisure-oriented Travel Management Companies/Consortia to further 'incent' travel agents to refer their guests to Intrawest resorts. This relationship will include our resort's appearance in several hotel/resort directories distributed to travel agencies and wholesalers worldwide. 
 
The obvious focus of the marketing has to be the San Francisco area. We are, however, not just focused on this regional market. The long-term success of any resort is dependent upon the development of destination visitors that will fill midweek time periods and increase the average number of nights stayed. We are leading the charge in developing new destination markets for the resort. Internationally, North American ski resorts have seen tremendous business success particularly in the United Kingdom. Intrawest's efforts in the U.K. will be expanded this year and next year to include broader consumer advertising and the appointment of an in-market representative to maintain a year round presence for Intrawest lodging in general.

You can expect us to capitalize on our ability to execute a well-developed marketing plan aimed at making you a satisfied owner. When placed in our rental program, you will enjoy the benefit of our technological development, sophisticated targeted use of database marketing and a variety of distribution channels, such as our partners in the travel industry, groups and various associations across the US, Canada, and other international markets. These activities will allow us to maximize and drive occupancies on a more year round basis and we expect to enjoy higher levels of activity during non-ski periods.
 
Through defined programs in sales, operations and lodging product development, we will establish cross-resort synergies in marketing. Exploiting new technologies not yet explored will enhance the ease of accessing our lodging. This will enhance our competitiveness in the vacation marketplace and make it easier for people to book a condominium at The Village at Squaw Valley USA.
 
Our standards are high and we intend to keep them there. This is your home and we are honored that you are considering placement with us. Expect a daily inspection of your unit while it is being occupied. Rely on us to create a memorable Guest Experience. A satisfied and happy guest staying in your unit as well as the Lodge, in general, is a potential return guest for both of us. Depend on us to execute a blueprint for success by keeping owners informed, attracting guests to your unit and building programs as well as packages that maximize every potential opportunity for revenue. We have made the commitment to provide you and our guests with a total lodging experience. Our goal is to make you glad you joined our team.
 
We hope this helps you understand our level of commitment. Among other things, marketing is really one of the major differentiators between our ability to fill rooms and others ability to do the same. Any questions regarding our marketing can be directed to Christy Beck or Adrienne Portnoy, our in house sales team for IHM at The Village at Squaw Valley. Adrienne can be reached at (530) 584-6229 and Christy at (530) 584-6227 or you can reach them by e-mail at either cbeck@intrawest.com or aportnoy@intrawest.com.