Bluegreen Acquires RDI Group.

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 8, 1997--Bluegreen Corporation (NYSE:BXG), a leading U.S. developer and marketer of residential land and timeshare resorts, today announced that it has acquired timeshare owner and operator RDI Group ("RDI") for an undisclosed combination of cash and debt. As previously announced, 80% of the purchase price was financed through a convertible note issuance with two Bluegreen Directors. RDI had revenues of approximately $29 million for its most recent, unaudited fiscal year ended September 30, 1997.

Headquartered in Fort Myers, Florida, privately-held RDI owns timeshare resorts in Orlando, Florida and Wisconsin Dells, Wisconsin. The Wisconsin resort, known as Christmas Mountain Village, is one of the Midwest's finest four season resorts offering hotel and restaurant facilities, an 18 hole championship golf course and seven ski hills served by two chair lifts. The Company also intends to begin construction of an additional phase to its existing resort property in Orlando by the end of the fiscal year. RDI also manages 30 vacation ownership resorts located in Florida, Alabama, Georgia, Virginia, and South Carolina with a member base of approximately 80,000. These locations complement Bluegreen's existing operations in the Southeastern United States.

George Donovan, Bluegreen's President and Chief Executive Officer, commented, "This acquisition, which is expected to be immediately accretive, has increased our annual timeshare revenue run rate to approximately $70 million and positions Bluegreen as a major participant in the rapidly growing timeshare industry. It also establishes us as a full-service operator which acquires, develops, markets and sells resort properties, providing financing for its customers as well as property management services.

"We intend to leverage our competitive strengths by combining our expertise in developing premier regional destination resorts with RDI's property management qualifications. The ability to provide consumers with flexibility is becoming the hallmark of successful companies in the timeshare industry. RDI's point-based vacation club provides owners with the flexibility they desire, allowing them to choose their destinations, times and lengths of stay from their vacation ownership. This new facet of our business also holds substantial value for Bluegreen in the way of enhanced marketing opportunities."

The Company also announced that several of RDI's senior officers and all of its shareholders have joined Bluegreen.

Mr. Donovan commented, "We are very pleased that these seasoned industry executives have joined Bluegreen. Their knowledge, relationships and years of experience will be a tremendous asset as we continue to expand our industry presence.

Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of residential land and timeshare resorts. The Company's land operations are predominantly located in the Southeastern and Southwestern United States, while its timeshare resorts are locate in a variety of popular vacation destinations including the Smoky Mountains of Tennessee, Myrtle Beach, South Carolina, Branson, Missouri, Orlando, Florida and Wisconsin Dells, Wisconsin.

This press release contains forward-looking statements. The words "believe," "expect," "intend," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, regulatory changes, national or regional economic conditions that can affect the real estate market, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT: Bluegreen Corporation, Boca Raton

John Chiste

Chief Financial Officer

[phone]

or

INVESTOR RELATIONS COUNSEL:

The Equity Group, New York 

Devin Sullivan [phone]

Robert Goldstein [phone]