Bluegreen Corporation Reports Record First Quarter Results.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--July 30, 2002

Bluegreen Corporation (NYSE:BXG):

FY 2003 Q1 Highlights vs. FY 2002 Q1

- Net Income Rises 24.7% to $5.2 Million, or $.19 Per Share

- Timeshare Sales Reach a First Quarter Record of $42.2 Million

- Homesite Sales Rise 26% to $28.9 Million

- S,G & A Expenses Decline as Percentage of Total Operating Revenues

- Book Value of $6.37 Per Share; Debt to Equity Ratio of 1.31:1

Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to timeshare resorts, golf communities and residential land homesites, today announced financial results for the first quarter ended June 30, 2002 (see attached tables), highlighted by record first quarter timeshare sales and record first quarter net income.

Net income for the first quarter increased 24.7% to $5.2 million, or $.19 per share, compared to net income of $4.1 million, or $.16 per share, for the same period last year. Management noted that the first quarter of 2003 was Bluegreen's(R) fifth consecutive quarter of profitability and the sixth consecutive quarter in which results improved over those reported in the same quarter of the prior fiscal year.

Timeshare sales for the first quarter increased 13.3% to a first quarter record $42.2 million from $37.3 million in the same period last year, due primarily to increased same-resort sales as Bluegreen did not open any new sales offices during the quarter.

Homesite sales for the first quarter rose 26% to $28.9 million from $22.9 million in the first quarter last year. Higher sales were due primarily to the demand for homesites at the Company's golf course communities, highlighted by continued strong sales at the Preserve at Jordan Lake(TM), which is located near Raleigh-Durham, NC, and continued success in the Texas market. Sales also benefited from lower interest and mortgage rates.

George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "We are very pleased to begin Fiscal 2003 the way we ended Fiscal 2002, with strong sales, increased profitability and a growing portfolio of high quality timeshare and homesite properties. Our success occurred in the context of Bluegreen entering what has historically been the strongest operating period of our fiscal year, the three months ending September 29th.

"The Company's strategic business plan continued to favorably impact operations in the first quarter of 2003. To illustrate, while total operating revenues increased by 15.3% during the first quarter of 2003, selling, general & administrative expenses as a percentage of these revenues declined to 46.9% from 47.2% and net income rose by 24.7%. We believe that we are continuing to effectively leverage the critical mass created by our 82,000 resort owners - a valuable off balance sheet asset - to lower Bluegreen's cost of doing business. By way of example, sales tours of the Company's resorts by existing owners and prospects referred to the Company by owners and others increased to 21% of total sales tours taken during the first quarter of 2003 versus 13% for the same period last year. This significantly lowers our marketing costs while providing current owners with the potential to realize referral-based rewards."

Mr. Donovan continued, "We believe consumers are increasingly becoming aware of and accepting Bluegreen's high-quality, amenity-rich, drive-to (excluding Aruba) timeshare resort properties, which are located in close proximity to some of the nation's most popular vacation destinations. As interest in our industry continues to grow, we will continue to focus on efficiently and profitably leveraging Bluegreen's operating infrastructure, enhancing our brand equity and expanding our market presence."

During the first quarter, Bluegreen sold approximately $26 million of timeshare receivables under its previously announced $125 million timeshare receivables purchase facility with ING LLC. The receivables were sold for approximately $22.1 million, without recourse to Bluegreen (except for breaches of customary representations and warranties) and the Company retained a residual interest in the receivables. Bluegreen will continue to service the receivables that were sold. The Company recognized a $1.2 million gain on the sale of these receivables.

Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of timeshare resorts, golf communities and residential land. The Company's timeshare 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; and Aruba, while its land 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 include, but are not limited to, 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, 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 strategic business plan and initiatives referred to in this release will not be successfully implemented, the economic and other impact of September 11th and other national and world events may have an adverse impact on the Company, past seasonality trends will continue 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 its most recent quarterly report on Form 10-Q to be filed on or about August 14, 2002. 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 Ended
                                             ------------------
                                         June 30,           July 1,
                                           2002              2001
                                           ----              ----
                                                  Unaudited
REVENUES:
Timeshare sales                          $ 42,226          $ 37,262
Homesite sales                             28,887            22,921
                                         --------          --------
Total sales                                71,113            60,183

Other resort and golf operations revenue    6,711             6,590
Interest income                             3,763             4,062
Gain on sale of notes receivable            1,231               978
                                         --------          --------

Total operating revenues                   82,818            71,813

COSTS & EXPENSES:
Cost of sales:
 Timeshare cost of sales                   10,740             8,347
 Homesite cost of sales                    14,227            11,724
                                         --------          --------
Total cost of sales                        24,967            20,071
Cost of other resort and golf operations    5,719             5,693
Selling, general and administrative
 expense                                   38,832            33,910
Interest expense                            3,223             3,735
Provision for loan losses                   1,081             1,290
Other expense                                 458               404
                                         --------          --------
Total operating expenses                   74,280            65,103
                                         --------          --------
Income before income taxes                  8,538             6,710
Provision for income taxes                  3,287             2,583
Minority interest in income (loss) of
 consolidated subsidiary                       93                (8)
                                         --------          --------
Net income                               $  5,158          $  4,135
                                         ========          ========

Net income per share:
 Basic:                                  $   0.21          $   0.17
                                         ========          ========
 Diluted:                                $   0.19          $   0.16
                                         ========          ========

Weighted average number of common and
 common equivalent shares:
 Basic                                     24,375            24,190
                                         ========          ========
 Diluted                                   30,325            29,929
                                         ========          ========



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

                                         June 30,          March 31,
                                           2002
                                           ----
                                        Unaudited

ASSETS
Cash and cash equivalents                $ 47,717          $ 48,715
Contracts receivable, net                  20,885            21,818
Notes receivable, net                      60,264            55,648
Inventory, net                            183,902           187,688
Retained interests in notes receivable
 sold                                      42,001            38,560
Property and equipment, net                48,775            49,338
Other assets                               36,250            33,394
                                         --------          --------
Total assets                             $439,794          $435,161
                                         ========          ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities and
 other                                   $ 41,559          $ 44,703
Deferred income                             4,027             5,043
Deferred income taxes                      32,182            27,408
Lines-of-credit and notes payable          53,070            54,890
10.50% senior secured notes payable       110,000           110,000
8.00% convertible subordinated notes
 payable                                    6,000             6,000
8.25% convertible subordinated debentures  34,371            34,371
                                         --------          --------
Total liabilities                         281,209           282,415

Minority interest                           3,183             3,090

Total shareholders' equity                155,402           149,656
                                         --------          --------
   Total liabilities and shareholders'
    equity                               $439,794          $435,161
                                         ========          ========