Bluegreen Corporation Reports Fiscal 2002 Financial Results; Fiscal 2002 Timeshare Sales Increase 30%; Fiscal 2002 Q3 Timeshare Sales Up 41%.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 5, 2003

Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to timeshare resorts ("Bluegreen(R) Resorts") and planned residential and golf communities ("Bluegreen Communities"), today announced financial results for the three months ended December 31, 2002 ("FY 2002 Q3") and the nine months ended December 31, 2002 ("FY 2002").

As previously announced, Bluegreen's Board of Directors approved a change in the Company's fiscal year from a 52- or 53-week period ending on the Sunday nearest the last day of March in each year to the calendar year ending on December 31, effective for the period ended December 31, 2002. As such, Bluegreen will file a Transition Report on Form 10-KT for the nine months ended December 31, 2002 in accordance with applicable requirements.

ROBUST SALES AND OPERATING REVENUES

Bluegreen Resorts sales for FY 2002 Q3 increased 41% to a third quarter record $45.5 million from $32.3 million in the same period last year, due primarily to increased same-resort sales and, to a lesser extent, the opening of two new sales offices in December 2002. Bluegreen Communities sales remained stable at $22.7 million versus $23.0 million during the three month period ended December 30, 2001. Total operating revenues for FY 2002 Q3 rose 38% to $92.2 million from $66.9 million for the same period one year ago.

Bluegreen Resorts sales for FY 2002 rose 30% to $144.0 million from $110.8 million last year. Bluegreen Communities sales were up 6% to $78.6 million from $73.9 million in FY 2001. Total operating revenues for FY 2002 increased 24% to $272.0 million from $220.0 million for the same period last year.

George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "We experienced double-digit annual percentage sales growth at several of our Bluegreen Resorts, including Laurel Crest, Falls Village, Shore Crest, Christmas Mountain Village, Lodge Alley Inn and Harbour Lights. Sales at Big Cedar Wilderness Club were also strong, due in large part to a significant increase in prospective buyer-tours originating from our marketing agreement with Bass Pro Shops. We recently opened a new, 12,000 square-foot off-site sales office and preview center in Bloomington, MN, located within two miles of the Mall of America, as well as a new sales office at the Mountain Run resort at Boyne Mountain, MI. We are encouraged by the sales generated at these locations during their inaugural months of operations. Overall sales tours at Bluegreen Resorts properties by existing owners, as well as prospects referred to the Company by owners and others, increased to 20% of total sales tours taken during FY 2002 from 16% last year. The increase in these owner and referral tours, which we believe speaks to the high quality leisure experience that Bluegreen provides its owners, also have lower associated marketing costs than other tours and provide current owners with the potential to realize referral-based rewards."

He continued, "We are also pleased with the sales performance at Bluegreen Communities. We are proud to announce the availability of new Bluegreen Communities in North Carolina, Colorado and Texas. Sales at Yellowstone Ranch, near Pueblo, CO, commenced in FY 2002 Q3, while sales at the other two properties are expected to commence during the current first quarter ending March 31, 2003. Each of these properties was acquired by Bluegreen in 2002."

CHANGE IN ACCOUNTING PRINCIPLE

Results for FY 2002 were impacted by a cumulative effect of a change in accounting principle which reduced net income by $5.9 million (net of tax), or $.19 per share. Bluegreen's management implemented this change during FY 2002 Q3, retroactive to April 1, 2002.

A divergence of practice exists in the timeshare industry relating to the accounting treatment of costs associated with tours generated by means of telemarketing. Historically, Bluegreen and certain other companies in its industry have deferred these costs until the customer physically participated in the tour or the tour offer expired. In November of 2002, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants and the Financial Accounting Standards Board approved the issuance of an exposure draft of a proposed Statement of Position ("SOP") relating to the treatment of these costs. The SOP, if finalized, will require that the costs associated with telemarketing-generated tours be expensed as period costs, as incurred.

Bluegreen management believes that this SOP will become recommended standard accounting practice in the near future. Prior to their acquisition by Bluegreen in October 2002, TakeMeOnVacation(TM), LLC and its affiliates had expensed tour-generation costs as incurred. Management believes this proactive step ensures that Bluegreen's accounting procedures related to the treatment of telemarketing costs are among the most conservative in the industry, and also creates a consistent standard regarding this matter throughout the Company.

Management believes that this change in accounting treatment will have no material impact on the Company's cash position, no material impact on any of its debt covenants, no material impact to its day-to-day operations and no material impact to its future financial results. Bluegreen's independent auditors will issue a "Preferability Letter" related to the Company's decision to implement this new accounting treatment.

RESULTS AFTER CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE

Net income for FY 2002 was $9.8 million, or $.39 per diluted share, after the impact of $5.9 million, or $.19 per share, cumulative effect of change in accounting principle, compared to net income of $10.7 million, or $.41 per diluted share, for the nine months ended December 31, 2001. Results for FY 2002 also included $1.8 million in higher selling, general and administrative expenses incurred during the period as a result of the change in accounting principle. Additional information regarding the change in accounting principle will be available in the Transition Report to be filed by Bluegreen on or about March 28, 2003.

FY 2002 Q3 Income Triples on 38% Increase in Total Operating

Revenues

Net Income for FY 2002 Q3 increased 211% to $6.1 million, or $0.23 per share, compared to income of $2.0 million, or $.08 per share, for the same period last year, primarily as a result of the significant increase in sales along with the recognized $4.7 million gain upon the previously announced sale of $170.2 million of timeshare loan-backed securities in November 2002. FY 2002 Q3 was not impacted by the aforementioned cumulative effect of change in accounting principle.

RESULTS BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE

FY 2002 Income Up 44% on 24% Rise in Total Operating Revenues

Income before cumulative effect of change in accounting principle for FY 2002 increased 44% to $15.4 million, or $.58 per share, compared to income of $10.7 million, or $.41 per share, last year. This significant increase was achieved despite the previously mentioned $1.8 million in higher selling, general and administrative expenses that were incurred during the period as a result of the change in accounting principle.

CONSISTENT GROWTH AND IMPROVED EFFICIENCIES PRODUCE A STRONG 2002

Mr. Donovan stated, "FY 2002 was a period of outstanding results for Bluegreen. FY 2002 Q3 was Bluegreen's seventh consecutive quarter of profitability and the eighth consecutive quarter in which overall results improved over those reported in the same quarter of the prior fiscal year. We are most encouraged by our success in improving the efficiencies of Bluegreen's operations and enhancing profitability."

SOLID FINANCIAL FOUNDATION

Bluegreen's balance sheet at December 31, 2002 was highlighted by a book value of $6.44 per share and a debt-to-equity ratio of 1.16:1.

Mr. Donovan concluded, "Bluegreen continues to maintain a solid financial position. During FY 2002, we strengthened our balance sheet through the repayment of all $6.0 million of Bluegreen's 8% convertible subordinated notes, signed a $50 million acquisition & development revolving credit facility with Residential Funding Corporation (dba GMAC Residential Construction), which we expect will be utilized by the Bluegreen Communities division, and recently completed a $170.2 million private offering of timeshare loan-backed securities with ING Financial markets representing the largest such offering in the Company's history."

Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of drive-to timeshare resorts ("Bluegreen Resorts") and planned residential and golf communities ("Bluegreen Communities"). Bluegreen Resorts are located in a variety of popular vacation destinations including Orlando, Florida; the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina; Charleston, South Carolina; Branson, Missouri; Wisconsin Dells, Wisconsin; Gordonsville, Virginia; Ridgedale, Missouri; Surfside, Florida; Boyne Mountain, MI; Big Sky, Montana; and Aruba, while its Bluegreen Communities operations are predominantly located in the Southeastern and Southwestern United States.

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 made by George Donovan and any other statements contained herein that 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, industry trends 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 to include, but are not limited to, the following: actual results for future periods may differ from those estimated, consumer demand and acceptance of the Company's products may be less than anticipated, regulatory changes, changes in national or regional economic conditions, including interest rates, that can affect the real estate market, the relationships with Boyne Resorts USA and Bass Pro Shops not proceeding as expected or being as successful as contemplated, the relationships with GMAC Residential Construction relative to the Company's acquisition and development line not proceeding as expected or being as successful as contemplated (including the availability of funds under that facility), the new sales center in MN not being as successful as contemplated, risks associated with a large investment in real estate, shortages of available inventory, the risk that the Company will not be able to continue to increase its customer base and/or achieve efficiencies, have sufficient outstanding sources of financing to satisfy its needs or be able to consummate future sales of receivables, the economic and other impact of national and world events may have an adverse impact on the Company, past seasonality trends will continue, future results may be adversely impacted by the change in accounting treatment related to telemarketing costs, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and the Transition Report to be filed on or about March 28, 2003. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.

                        BLUEGREEN CORPORATION
                    Consolidated Income Statements
                  (In 000's, Except Per Share Data)


                                    Three Months       Nine Months
                                       Ended         (FY 2002) Ended
                                   -----------------------------------
                                  December  December December December
                                  31, 2002  30, 2001 31, 2002 30, 2001
                                   -----------------------------------
REVENUES:
-----------------------------------
Timeshare sales                    $45,494 $32,272  $144,026 $110,846
Home site sales                     22,662  23,013    78,629   73,857
                                   -----------------------------------
Total sales                         68,156  55,285   222,655  184,703
Other resort and golf operations
 revenue                            12,773   5,607    27,048   19,184
Interest income                      4,454   3,776    12,235   11,855
Gain on sale of notes receivable     6,767   2,185    10,035    4,214
Other income                             -       -         -        -
                                   -----------------------------------
Total operating revenues            92,150  66,853   271,973  219,956
                                   -----------------------------------

EXPENSES:
-----------------------------------
Cost of sales:
  Timeshare cost of sales           10,513   7,638    35,560   25,726
  Home site cost of sales           13,434  12,346    42,363   38,407
                                   -----------------------------------
Total cost of sales                 23,947  19,984    77,923   64,133
Cost of other resort and golf
 operations                         14,345   5,949    26,895   17,844
Selling, general and administrative
 expense                            41,741  33,939   128,308  106,345
Interest expense                     3,280   3,032     9,824   10,129
Provision for loan losses              190     788     2,832    3,683
Other expense                          386      83     1,520      277
                                   -----------------------------------
Total operating expenses            83,889  63,775   247,302  202,411
                                   -----------------------------------
Income before taxes                  8,261   3,078    24,671   17,545
Provision for income taxes           1,828   1,185     8,793    6,755
Minority interest in income (loss)
 of consolidated subsidiary            296     (79)      502      107
                                   -----------------------------------
Income before cumulative effect of
 change in accounting principle      6,137   1,972    15,376   10,683
Cumulative effect of change in
 accounting principle, net of tax        -       -    (5,929)       -
Minority interest in cumulative
 effect of change in accounting
 principle                               -       -      (350)       -
                                   -----------------------------------


Net income                          $6,137  $1,972    $9,797  $10,683
                                   ===================================

Net income per share:
 Basic:
   Income before cumulative effect
    of change in accounting
    principle                       $ 0.25  $ 0.08    $ 0.63   $ 0.44
   Cumulative effect of change in
    accounting principle, net of tax     -       -     (0.23)       -
                                   -----------------------------------
   Net income                       $ 0.25  $ 0.08    $ 0.40   $ 0.44
                                   ===================================
 Diluted:
   Income before cumulative effect
    of change in accounting
    principle                       $ 0.23  $ 0.08    $ 0.58   $ 0.41
   Cumulative effect of change in
    accounting principle, net of tax     -       -     (0.19)       -
                                   -----------------------------------
   Net income                       $ 0.23  $ 0.08    $ 0.39   $ 0.41
                                   ===================================
Weighted average number of common
 and common equivalent shares:
  Basic                             24,543  24,297    24,472   24,240
                                   ===================================
  Diluted                           28,825  25,838    28,783   29,968
                                   ===================================


                        BLUEGREEN CORPORATION
                Condensed Consolidated Balance Sheets
                              (in 000's)

                                            December 31,    March 31,
                                                2002          2002
ASSETS

Cash and cash equivalents                        $ 46,905    $ 48,715
Contracts receivable, net                          16,230      21,818
Notes receivable, net                              61,795      55,648
Inventory, net                                    173,131     187,688
Retained interests in notes receivable sold        44,228      38,560
Property and equipment, net                        51,787      49,338
Other assets                                       39,916      33,394
                                               -----------------------
Total assets                                     $433,992    $435,161
                                               =======================

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities and other  $ 37,501    $ 43,812
Deferred income                                    19,704       5,043
Deferred income taxes                              31,122      28,299
Lines-of-credit and notes payable                  39,769      54,890
10.50% senior secured notes payable               110,000     110,000
8.00% convertible subordinated notes payable            -       6,000
8.25% convertible subordinated debentures          34,371      34,371
                                               -----------------------
Total liabilities                                 272,467     282,415

Minority interest                                   3,242       3,090

Total shareholders' equity                        158,283     149,656
                                               -----------------------
   Total liabilities and shareholders' equity    $433,992    $435,161
                                               =======================