Bluegreen Corporation Enters Into Separate Credit Facilities Aggregating $65 Million.

BOCA RATON, FL--(BUSINESS WIRE)--October 21, 1998--Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of timeshare resorts and residential land, today announced that it has significantly strengthened its borrowing capacity by signing separate credit agreements aggregating $65 million.

Bluegreen signed separate credit agreements with Heller Financial, Inc. ("Heller") for a new, two year $35 million Timeshare Receivable Warehouse Facility at LIBOR plus 2.75 and a new three year $25 million Timeshare Acquisition and Development Facility at LIBOR plus 3.00. The Company also signed a new, one year $5 million, unsecured revolving line of credit with First Union National Bank to be used for working capital and general corporate purposes. Interest on the line of credit will be based on LIBOR plus 1.50.

John F. Chiste, Chief Financial Officer of Bluegreen, commented, "We appreciate the support and confidence that these lenders have shown in our business plan and growth prospects. We also share their enthusiasm as it relates to the anticipated continued growth of the timeshare industry. While we do not currently anticipate having to utilize these new credit facilities in the short term, the availability of additional capital will enhance Bluegreen's flexibility in the areas of operations and acquisitions while bolstering an already strong financial foundation."

Mr. Chiste also noted that, in addition to these recently signed credit agreements, Bluegreen currently has an untapped $35 million Acquisition, Development and Receivables Facility for its Residential Land Division and a $20 million Residential Land Acquisition, Development and Receivables Facility, of which approximately $7.5 million is outstanding. As a result, Bluegreen has approximately $112.5 million of available credit at its disposal, subject to customary conditions and eligible collateral. The Company also recently announced a two-year, $100 million timeshare receivables purchase facility with Heller. On June 26, 1998, Bluegreen and Heller completed the first transaction under this facility, with Heller purchasing timeshare receivables with an aggregate principal balance of approximately $32 million.

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

This press release contains forward-looking statements. The words "believe," "expect," "intend," "anticipate," "estimate" 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.