Bluegreen Corporation Finalizes Acquisition of Resort Property in Williamsburg, Virginia.

BOCA RATON, Fla. -- Bluegreen Corporation (NYSE: BXG), a leading provider of Colorful Places to Live and Play([R]), today announced it has finalized the second phase of its resort property acquisition in Williamsburg, Va. less than one block from the historic district of Colonial Williamsburg. The new Bluegreen([R]) resort will be called Patrick Henry Square([TM]).

As announced on June 28, 2006, Bluegreen commenced the first phase of this project with the purchase of the Patrick Henry Inn, and the Liberty Inn and Conference Center, located on approximately 4.6 acres of land in Williamsburg, Va. The second and final phase of the project consisted of the purchase of the Colonial Capital Inn and a commercial building, which are located on approximately 18 acres of adjacent land.

Bluegreen currently plans to build approximately 8 campus-style buildings containing 400 two-bedroom timeshare units and an amenities building on the 18-acre site. The development is planned to be built in approximately 9 phases beginning in 2007.

"We're very excited to finalize plans for our Williamsburg resort," notes George F. Donovan, president and chief executive officer of Bluegreen. "This new property, our second in Virginia, shows our continued commitment to providing our owners and guests with access to some of the nation's most popular vacation destinations," he added.

Bluegreen expects to begin construction in the fourth quarter of 2006 to transform the 142-room Liberty Inn hotel into approximately 76 one- and two-bedroom timeshare units. These units are estimated to be available for occupancy in 2008. Approximately 11,000 square feet of the adjoining Conference Center and approximately 6,000 square feet of the hotel are planned as a Bluegreen Preview Center, also estimated to be available in 2008. Bluegreen Resorts Management, Inc. is currently operating the Liberty Inn and Conference Center. The Company plans to renovate and continue to utilize the 158-room Patrick Henry Inn for overnight accommodations.

Williamsburg is 150 miles from Washington, DC; 50 miles from Richmond, Va. and 60 miles from Virginia Beach, Va. In addition to Colonial Williamsburg, this latest Bluegreen Resort will be in close proximity to Busch Gardens, an amusement park based around a European theme, and Water Country USA, the mid-Atlantic's largest water play park with a 1950's and 1960's surf theme.

According to industry information in Virginia, timeshare owners spend an average of $1,591 on food, shopping and tourist attractions during a typical one-week vacation stay. In addition to bringing additional tourists to the area, Bluegreen expects to contribute to the local economy through the employment of guest services, construction, and sales and marketing personnel, as well as through generation of state and local taxes and fees. The Company hopes to establish marketing alliances with local vendors to provide incentives to its guests, including admission tickets to local attractions, and restaurant and merchandise certificates.

ABOUT BLUEGREEN CORPORATION

Bluegreen Corporation (NYSE:BXG) is a leading provider of Colorful Places to Live and Play([R]) through two principal operating divisions. With over 150,000 owners, Bluegreen Resorts markets a flexible, real estate-based vacation ownership plan that provides access to over 40 resorts, an exchange network of over 3,700 resorts and other vacation experiences such as cruises and hotel stays. Bluegreen Communities has sold over 51,000 planned residential and golf community homesites in 32 states since 1985. Founded in 1966, Bluegreen is headquartered in Boca Raton, Fla., and employs nearly 5,000 associates. In 2005, Bluegreen ranked No. 57 on Forbes' list of The 200 Best Small Companies and No. 48 on FORTUNE's list of America's 100 Fastest Growing Companies. More information about Bluegreen is available at www.bluegreencorp.com.

Statements in this release may constitute forward-looking statements and are made pursuant to the Safe Harbor Provision of the Private Securities and Litigation Reform Act of 1995. Use of words such as "plan", "plans", "expects", "will," and other forward-looking statements are based largely on expectations and are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with economic, competitive and other factors affecting the Company and its operations, markets, products and services, that the Williamsburg resort will not be as attractive a destination as anticipated, there will be delays in the initial timeshare sales operation in Williamsburg or in the construction of the Williamsburg resort, that the resort will not be constructed as anticipated, the risk that sales and marketing strategies will not be as successful as anticipated, that the additional parcel will not be purchased, that costs of construction will exceed budget, that adequate labor sources will not be available in sufficient quantities or at reasonable wages or salaries, and the risk factors and other issues detailed in the Company's SEC filings, including its most recent Annual Report on Form 10-K filed on March 16, 2006, and the Quarterly Report on Form 10-Q filed November 9, 2006.