A very sad day for Searchmont

STATEMENT

SEARCHMONT SKI ASSOCIATION

SEARCHMONT RESORT

********************** In late March, Jack McDermott, the owner of Searchmont Ski Resort announced that ski operations would cease at the end of the 2004/2005 winter season.

Since that time the Searchmont Ski Association Inc. (The Association) has reviewed various aspects of the operation to determine what would be involved to lease or purchase and operate the resort.

The association is interested in a long-term solution to the viability of the resort and its ski operation and has been in regular negotiation with Mr. McDermott in an attempt to reach a mutually satisfactory purchase.

The passing of time has now become of great concern because of the lengthy preparation process required before commencement of the next ski season.

We know that the skiing public and the local tourism industry have a keen interest in the continued operation of Searchmont Resort but all currently available options have been exhausted.

An agreement could not be reached and negotiations have been suspended.

No further discussions are planned.

Duane Buchanan, chair Searchmont Ski Association Inc.

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