Bluegreen Corporation Reports Record 2005 Third Quarter Financial Results.

BOCA RATON, Fla. -- Bluegreen Corporation (NYSE: BXG):

Q3 2005 Highlights Versus Q3 2004

--Net income increased 14.4% to $18.7 million, or $0.60 per share

--Resorts sales rise 19.0% to $114.4 million

--Book value increased to $10.10 at September 30, 2005 from $9.47 at June 30, 2005

Bluegreen Corporation (NYSE: BXG), a leading provider of leisure products and lifestyle choices, today announced record financial results for the third quarter ended September 30, 2005 (see attached tables).

Net income for the third quarter of 2005 increased 14.4% to $18.7 million, or $.60 per diluted share, on approximately 31.2 million weighted average common and common equivalent shares outstanding ("shares outstanding"), compared to net income of $16.3 million, or $.54 per diluted share, on approximately 30.6 million shares outstanding for the third quarter of 2004. Net income for the first nine months of 2005 rose 31.0% to $39.4 million, or $1.26 per diluted share, on approximately 31.2 million shares outstanding, compared to net income of $30.1 million, or $1.02 per diluted share, on approximately 30.6 million shares outstanding for the first nine months of 2004.

Total sales in the third quarter of 2005 increased to $166.8 million from $161.9 million in the same period last year. Higher sales at Bluegreen(R) Resorts were partially offset by lower sales at the Company's Communities segment (discussed further below). For the first nine months of 2005, total sales increased 14.2% to $430.0 million from $376.4 million in the same period last year.

BLUEGREEN RESORTS

Resorts sales in the third quarter of 2005 increased 19.0% to a third quarter record $114.4 million from $96.1 million in the same period last year. Resorts sales for the first nine months of 2005 rose 17.4% to $277.0 million from $235.9 million in the same period last year.

George F. Donovan, President and CEO of Bluegreen, commented, "We believe that we continue to benefit from the critical mass we have achieved in our Resorts segment and increasing customer acceptance of the Bluegreen Vacation Club(R) product. Same-Resort sales increases at many of our sales offices, most notably at The Fountains(TM) resort in Orlando, FL, helped drive this segment's growth during the third quarter. In addition, we realized significant sales increases at several of our resorts, including the Bluegreen Wilderness Club at Big Cedar(TM) (Ridgedale, MO), Harbour Lights(TM) (Myrtle Beach, SC), Christmas Mountain Village(TM) (Wisconsin Dells, WI) and Mountain Run at Boyne(TM) (Boyne Falls, MI). New sales sites in Dallas, TX, King of Prussia, PA and The Suites at Hershey(TM) (Hershey, PA) also contributed to higher sales. We are optimistic about the continued success of this segment."

Resorts cost of sales in the third quarter of 2005 declined to 21.8% of sales from 24.8% in the same period last year. Resorts cost of sales decreased to 21.0% during the first nine months of 2005 from 23.5% during the same period one year ago. These decreases reflected a favorable product mix, primarily due to the additional construction of units and increased sales of vacation ownership interests in The Fountains resort, which has a relatively low associated product cost. Resorts cost of sales has more typically ranged from 23% to 25%, and Bluegreen expects that it will be at that level in the future due to rising construction costs and the increased cost of real estate of potential acquisitions.

Mr. Donovan continued, "We continue to expand our network of Bluegreen Vacation Club destinations. As previously announced, we recently acquired a 19-story, 144-unit oceanfront resort (to be renamed SeaGlass Tower(TM)) in Myrtle Beach, South Carolina. Also, our Daytona SeaBreeze Resort in Daytona Beach Shores, Florida, featuring 79 one- and two-bedroom ocean front units, opened for occupancy in July 2005."

BLUEGREEN COMMUNITIES

Communities sales in the third quarter of 2005 declined to $52.4 million from $65.8 million in the same period one year ago, the result of the sell-out of six Communities properties during or prior to the third quarter of 2005. As of September 30, 2005, approximately $37.8 million and $16.0 million of Communities sales and profits, respectively, were deferred under the percentage-of-completion method of accounting. It is expected that these amounts will be recognized in future periods ratably with the development of the projects.

Mr. Donovan commented, "As we announced in March 2005, the high level of sales achieved in the Communities segment during 2004 and 2005 resulted in some of our properties either selling out or on pace to sell out earlier in 2005 than previously expected. We have always relied on the acquisition of new properties in order to meet our ongoing inventory needs, and this remains the case. Our acquisition efforts are evidenced by the commencement of sales at two Texas properties - SugarTree on the Brazos (in January) and Saddle Creek Ranch (in April). In the summer of 2005, we acquired two additional properties in Texas totaling approximately 2,600 acres. One of these projects - The Settlement at Patriot Ranch near San Antonio - commenced sales in August 2005, while the other - Havenwood at Hunter's Crossing, also near San Antonio -- is expected to commence sales in early 2006."

Mr. Donovan continued, "We believe that our acquisition pipeline is robust. Our team of experienced real estate professionals continues to identify new potential acquisitions and to review target properties to determine if they meet our quality and economic standards. Although we have not yet completed our acquisitions, we have made significant progress towards the acquisition of substantial new properties in our existing markets, and anticipate closing on at least one of these transactions in early 2006."

Communities cost of sales was 53.2% as compared to 53.1% in the third quarter of 2005. Communities cost of sales declined to 51.5% in the first nine months of 2005 from 54.4% in the same period last year, as a higher percentage of total sales in 2005 were comprised of golf properties, which generally have higher associated gross margins.

FINANCIAL METRICS AND POSITION

Total positive net interest spread (interest income less interest expense) was $5.2 million in the third quarter of 2005 as compared to $2.5 million in the third quarter of 2004. Interest income increased primarily as a result of a higher average portfolio of vacation ownership notes receivable held during the third quarter of 2005 compared to the same period one year ago, while interest expense declined primarily as a result of lower average debt outstanding.

Bluegreen's balance sheet at September 30, 2005 reflected unrestricted cash of $68.0 million, a book value of $10.10 per share compared to a book value of $9.47 per share at June 30, 2005, and a debt-to-equity ratio of 0.66:1 as compared to 0.70:1 at June 30, 2005.

ADOPTION OF AICPA STATEMENT OF POSITION 04-2

Bluegreen also commented on the required adoption of the American Institute of Certified Public Accountants' Statement of Position 04-2, "Accounting for Real Estate Time-sharing Transactions" (the "SOP"), effective January 1, 2006. The Company currently estimates that the adoption of the SOP will result in a one-time, non-cash, cumulative effect of change in accounting principle charge of $2.5 million to $4.0 million, or $.08 - $.13 per share, in the first quarter of 2006. This charge will consist primarily of deferred Resorts sales, which are the result of providing buyers with certain purchase incentives, and the impact of new rules under the SOP regarding the treatment of the Company's Sampler Program. The Sampler Program gives purchasers an opportunity to try the Company's vacation ownership product through a one-year allotment of Bluegreen Vacation Club points that can be used for stays at Bluegreen resorts. In addition, the Company allows Sampler purchasers a credit of certain amounts paid on their Sampler Package towards a down payment on the purchase of a vacation ownership interest. Under the SOP, this credit will result in the deferral of such sales until additional amounts are received from the purchaser, typically through their required mortgage payments.

CONFERENCE CALL

George F. Donovan, President and Chief Executive Officer, and Anthony M. Puleo, Chief Financial Officer, will host a conference call on Wednesday, November 2, 2005 at 11:00 A.M. Eastern Time to discuss this news release. The telephone number to join this conference call is [phone] (Domestic) or [phone] (International) and use the code 90315413. A taped replay of the call will be available through 11:59 P.M. Eastern Time on November 9, 2005. Please dial [phone] (Domestic) or [phone] (International) and enter the number 78152885 to listen to the replay. In addition, the conference call will be broadcast live over the Internet via Bluegreen's corporate web site at www.bluegreencorp.com. To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to participate in the live call, the conference call will be archived and can be accessed on Bluegreen Corporation's web site for approximately 90 days.

ABOUT BLUEGREEN CORPORATION

Bluegreen Corporation (NYSE:BXG) is a leading provider of places where people live and play. The company has approximately 4,900 employees working in two divisions: Bluegreen Resorts and Bluegreen Communities. Bluegreen Resorts markets and sells the Bluegreen Vacation Club(R), a flexible points-based vacation ownership system with access to over 40 resorts and an exchange network of over 3,700 resorts and other leisure products such as cruises. During 2004, Bluegreen Resorts delivered over 140,000 unique vacation experiences to over 134,000 owners. Bluegreen Communities develops, markets and sells planned residential and golf communities predominately in the southeastern and southwestern United States. Bluegreen Communities has sold over 49,000 homesites in 32 states since 1985. Founded in 1966, Bluegreen is headquartered in Boca Raton, FL. In 2005, Bluegreen was ranked #57 on Forbes' list of the "The 200 Best Small Companies" and was ranked #48 on FORTUNE'S list of "America's 100 Fastest Growing Companies."

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. 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, as well as the risk that Company-wide growth and growth at Resorts and Communities will not occur as anticipated, the Company will not be able to acquire land or identify new projects, as anticipated, sales and marketing strategies related to new Resorts and Communities properties will not be as successful as anticipated, the effect of the adoption of the SOP will differ from that anticipated or will have a materially adverse impact on the operations of Resort segment, and the risks and other factors detailed in the Company's SEC filings, including its most recent Annual Report on Form 10-K filed on March 16, 2005 and its Quarterly Report on Form 10-Q to be filed on or about November 9, 2005.

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


                            Three Months Ended     Nine Months Ended
                           --------------------- ---------------------
                            Sept. 30,  Sept. 30,  Sept. 30,  Sept. 30,
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------

REVENUES:
---------

Vacation ownership sales   $ 114,371  $  96,104  $ 277,034  $ 235,888
Home site sales               52,401     65,794    152,967    140,515
                           ---------- ---------- ---------- ----------
Total sales                  166,772    161,898    430,001    376,403

Other resort and
 communities operations
 revenue                      21,191     19,167     58,003     50,444
Interest income                8,214      5,743     20,439     15,484
Gain on sale of notes
 receivable                    2,271      3,333      5,323      6,929
                           ---------- ---------- ---------- ----------
Total operating revenues     198,448    190,141    513,766    449,260
                           ---------- ---------- ---------- ----------

EXPENSES:
---------
Cost of sales:
  Vacation ownership cost
   of sales                   24,974     23,873     58,064     55,479
  Home site cost of sales     27,892     34,914     78,798     76,374
                           ---------- ---------- ---------- ----------
Total cost of sales           52,866     58,787    136,862    131,853
Cost of other resort and
 communities operations       20,149     20,104     59,148     52,580
Selling, general and
 administrative expense       86,645     77,937    229,991    194,778
Interest expense               3,027      3,242      9,824     11,339
Provision for loan losses      2,843      2,603      5,826      6,502
Other expense                    984        591      4,669        556
                           ---------- ---------- ---------- ----------
Total operating expenses     166,514    163,264    446,320    397,608
                           ---------- ---------- ---------- ----------
Income before minority
 interest and provision
 for income taxes             31,934     26,877     67,446     51,652
Minority interest in
 income of consolidated
 subsidiary                    1,584        360      3,305      2,692
                           ---------- ---------- ---------- ----------
Income before provision
 for income taxes             30,350     26,517     64,141     48,960
Provision for income taxes    11,685     10,208     24,694     18,849
                           ---------- ---------- ---------- ----------

Net income                 $  18,665  $  16,309  $  39,447  $  30,111
                           ========== ========== ========== ==========

Net income per share:
 Basic:                    $    0.61  $    0.62  $    1.30  $    1.16
                           ========== ========== ========== ==========
 Diluted:                  $    0.60  $    0.54  $    1.26  $    1.02
                           ========== ========== ========== ==========

Weighted average number of
 common and common
 equivalent shares:
  Basic                       30,385     26,298     30,350     25,858
                           ========== ========== ========== ==========
  Diluted                     31,220     30,646     31,239     30,563
                           ========== ========== ========== ==========


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


                                           September 30,  December 31,
                                               2005          2004
ASSETS                                      (Unaudited)

Cash and cash equivalents (unrestricted)   $     67,950  $     79,142
Cash and cash equivalents (restricted)           20,678        19,396
Contracts receivable, net                        43,758        28,085
Notes receivable, net                           131,563       121,949
Prepaid expenses                                  7,594         7,810
Other assets                                     23,753        22,359
Inventory, net                                  214,958       205,213
Retained interests in notes receivable sold      96,744        72,099
Property and equipment, net                      79,541        74,244
Intangible assets and goodwill                    4,376         4,512
                                           ------------- -------------
Total assets                               $    690,915  $    634,809
                                           ============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable                           $     10,836  $     11,552
Accrued liabilities and other                    44,429        44,351
Deferred income                                  32,709        24,235
Deferred income taxes                            83,711        58,150
Receivable-backed notes payable                  36,815        43,696
Lines-of-credit and notes payable                51,971        71,949
10.50% senior secured notes payable              55,000       110,000
Junior subordinated debentures                   59,280             -
                                           ------------- -------------
Total liabilities                               374,751       363,933

Minority interest                                 9,314         6,009

Total shareholders' equity                      306,850       264,867
                                           ------------- -------------
Total liabilities and shareholders' equity $    690,915  $    634,809
                                           ============= =============