Bluegreen Announces Record Third Quarter Results; Net Income Rises 73% on 27% Increase in Revenues.

BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 8, 1999--Bluegreen Corporation (NYSE:BXG), a leading U.S. developer and marketer of timeshare resorts and residential land, today announced record financial results for the three and nine month periods ended December 27, 1998 (see attached table).

Third Quarter Total Revenues Rise 27.3%; Operating and Net Income Reach Record Levels

Total revenues for the three months ended December 27, 1998 increased 27.3% to a third quarter record $62.7 million from $49.3 million for the same period last year. For the nine months ended December 27, 1998, total revenues increased 46.4% to a record $193.0 million from $131.8 million for the same period last year. Operating income for the fiscal 1999 third quarter rose 49.3% to $6.2 million from $4.1 million in last year's third quarter. Operating income for the fiscal 1999 nine-month period increased 90.9% to $22.2 million from $11.6 million for the comparable prior year period. Net income for the fiscal 1999 third quarter increased 72.6% to a third quarter record $4.3 million, or $.16 per diluted share, versus net income of $2.5 million, or $.11 per diluted share, for the same period last year. Net income for the fiscal 199Timeshare sales in the third quarter rose 53.4% to $25.0 million from the prior like quarter, reflecting the 74.9 million from the prior year period, while 50%-owned joint venture, with no corresponding sales in the fiscal 1998 third quarter. Additional contributing factors include sales generated from the Company's recently opened off-site sales offices; an increase in the average sales price of timeshare properties to $8,619 from $8,300 in the same period of the prior year; the seasoning of existing resorts from the prior year periods; and increased effectiveness of new and additional marketing programs.

Operating Margin Improves; Interest Income Reaches Record Levels

Selling, general and administrative expenses ("S,G&A") as a percentage of total revenues for the third quarter of fiscal 1999 increased to 46.0% from 43.9% in the third quarter of fiscal 1998. This is due primarily to the increase in timeshare division sales as a percentage of total Company revenues, as selling and marketing costs are greater for the timeshare division. The growth in timeshare revenues also contributed to significant additions to the Company's notes receivable portfolio, which contributed to increased interest income and cash flow from sales of timeshare receivables (see further discussion below). Interest income for the fiscal 1999 third quarter reached $4.1 million compared to $3.2 million for the same period last year. As residential land gross margins increased at a faster rate than the related S,G&A, the Company's operating margin (as a percentage of total sales of real estate) increased to 11.1% in the fiscal 1999 third quarter from 9.3% in the same period one year ago.

George Donovan, President and Chief Executive Officer of Bluegreen, commented, "In just the first nine months of fiscal 1999, Bluegreen has surpassed, among other things, total sales, timeshare sales and net income achieved by opened new timeshare sales offices in Cleveland, Ohio and, more recently, in Louisville, Kentucky. In December, Heller Financial, Inc. ("Heller") purchased from a whollpproximately $45.9 million of Bluegreen's timeshare receivables, thus simplifying our capital structure, reducing our loan exposure and strengthening our cash flow. Approximately $54.1 million of additional timeshare receivables may be sold to Heller under the existing $100 million purchase facility, subject to customary conditions and eligible notes.

"On the land side of the business, we began selly $32.0 million in life-of-project sales to our the funds available under existing agreements fo

The Company also announced that it has, touegreen common stock.

Bluegreen is one of the leading companies engaged in the acquisition, developmentar vacation destinations including the Smoky Mouatements. The words "believe," "expect," "inten or quantified. Future events and actual result include, but are not limited to, regulatory changes, national or regional economic conditions that can affecmmission. -0-

                        ths Ended
                         Dec. 27,            --------    --------     --------
  ---

Interest income            4,112       3,190       11,361       7,324
                        --------                      --------    --------
----,433      10,301
   Homes cost of sales     1,3              --------    --------     --------
 --------
Cost of other resort
 and golf operations       3,331       1,509        8,606       1,509
Selling, general a,526
Interest expense           2,920       2,7enses                 56,532
45,116      17         (33)       3,485         120
          1,641       10,280       4,774
Minority intereore
 extraordinary item        4,273       2,475       15,473       6,984

Extraordinary loss on
 early extinguishment
 of debt, net of
 income taxes                  -           -       (1,682)          -
                        --------    --------     --------    --------

Net Income              $  4,273    $  2,475     $ 13,791    $  6,984
                        ========    ========     ======fore
      extraordinary
      item                Income before
      extraordinary
       -        (0.06)          -
                        --------    --------     --------    --------
     Net Income         $   0.16    $   0.11     $   0.53    $   0.33
                        ========    ========     ========    ========

Weighted average number
 of common and commo            ( in 000's)


                                           (unaudited)

ASSETS
Cash and cash equivalents          $    52,962            $
81,293
Inventory, net               ets                            18,250
    9,759
                                   -----------            -----------
   Total assets                    $   332,056            $   272,963
                                   ===========            ===========

LIABILITIES AND SHAREHOLDERS'
 EQUITY
Liabilities
Accounts payable, accrued
 liabilities and other             $    20,757            $    24,288
Deferred income                          5,693                  8,392
Lines-of-credit and notes
 payable                                30,748                121,090
Deferred income taxes                   16,409                  8,011
10.50% senior secured notes
 payable                               110,000                      -
8.00% convertible subordinated
 notes payable                           6,000                  6,000
8.25% convertible subordinated
 debentures                             34,371                 34,739
                                   -----------            -----------
   Total liabilities                   223,978                202,520

Minority interest                          397                    450

Total shareholders' equity             107,681                 69,993
                                   -----------            -----------
   Total liabilities and
    shareholders' equity           $   332,056             $  272,963
                                   ===========            ===========