Bluegreen Corporation Acquires Marathon Resort and Marina in Florida Keys.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 21, 2004

Signs Acquisition & Development and Timeshare 

Receivables Facility with Textron Financial Corporation

Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to vacation ownership resorts ("Bluegreen(R)) Resorts") and planned residential and golf communities ("Bluegreen Communities") today announced that it has purchased the Marathon Resort and Marina located in the Florida Keys. Terms of the acquisition were not disclosed.

Marathon Resort and Marina, located at 1688 Overseas Highway, is a three-floor, 79-room beachfront resort in the quaint family-oriented community of Marathon, FL, within easy reach of Miami and Key West. Bluegreen expects to commence renovations immediately to transform this property into 58 one- and two-bedroom vacation residences offering such amenities as a pool, boat slips, outside tiki bar and a variety of water sport recreational vehicle rentals.

The renovated property will be renamed The Hammocks at Marathon, a Bluegreen Vacation Club(R) Resort. Sales through the Bluegreen Vacation Club are expected to commence in the first quarter of 2004.

George F. Donovan, President and CEO of Bluegreen, commented, "Bluegreen continues to expand its Resorts portfolio through a combination of internal growth and strategic acquisitions. The Hammocks at Marathon establishes Bluegreen's presence in the Florida Keys and increases to 20 the number of Bluegreen Vacation Club Resorts in Florida. It also augments our inventory of beachfront property, which has four-season appeal to many of our Vacation Club members in the Northeastern and Midwestern United States, while adhering to our philosophy of offering flexibility in the accommodations we offer our customers."

During December 2003, Bluegreen and Textron Financial Corporation ("Textron") signed a combination $30 million Acquisition & Development and Timeshare Receivables facility. Bluegreen utilized this facility to finance a portion of the purchase price of The Hammocks at Marathon. The balance of this facility will be available to finance the cost of renovations on the Marathon property and for borrowings collateralized by the Company's vacation ownership receivables.

Mr. Donovan commented, "This agreement represents Bluegreen's initial relationship with Textron. We believe that working with Textron reflects the quality of Bluegreen's properties, the financial stability of our operations and the promising outlook for this segment of our business. We also believe that additional opportunities exist to further our relationship with Textron and look forward to a long and mutually beneficial relationship."

Bluegreen Corporation (NYSE:BXG) is one of the leading companies engaged in the acquisition, development, marketing and sale of vacation ownership resorts and residential communities in the United States. Bluegreen Resorts develops, markets, operates and manages high-quality, amenity-rich vacation ownership resorts in the United States and Aruba. These vacation ownership opportunities are offered primarily through The Bluegreen Vacation Club(R), a points-based ownership system that provides its members with the flexibility to enjoy resort vacations, cruises and other travel benefits. Bluegreen Communities develops and markets planned residential communities, predominantly in the Southeastern and Southwestern United States, to retail customers seeking to build a home in a high-quality residential setting.

This press release contains forward-looking statements and the Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 in connection with these statements. Statements contained herein are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," "project," "may," "should," "designed to," "estimate," "hope," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any 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 based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events 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 to include, but are not limited to, The Hammocks at Marathon not being as successful as contemplated, that the conditions of the Textron facility will not be met, that funding will not be available under the facility, that Textron will not provide additional financing to the Company in the future and other risks detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, including its most recent Transition Report on Form 10-KT filed on March 31, 2003, and its Quarterly Report on Form 10-Q filed on November 14, 2003.

(C) 2003 Bluegreen Corporation. All rights reserved. Bluegreen, Bluegreen Resorts, Bluegreen Communities and the Bluegreen Vacation Club are registered trademarks of Bluegreen Corporation. All other trademarks are properties of their respective owners.