Bluegreen announces second quarter results.

BOCA RATON, Fla.--(BUSINESS WIRE)--Nov. 4, 1996--Bluegreen Corp. (NYSE:BXG) said Monday that it recorded lower sales and net income for the second quarter ended Sept. 29, 1996, but that the company's resort timeshare business is expanding rapidly and profitably.

Sales of vacation ownership intervals, which Bluegreen has emphasized since it entered the fast-growing industry in 1994, increased from $2.9 million for the second quarter last year to $6.8 million for the current quarter. As of Sept. 29, 1996, the company estimates that it will have 35,400 intervals available for sale upon completion of development at its three existing timeshare resorts.

According to George Donovan, president and chief executive officer: "We are making excellent progress in our effort to reshape our business mix, curtailing home-building activities conducted in our Communities Division while maintaining a strong land sales business that produces cash flow to fund the growth of our Resort Division. We are encouraged by our progress to date and optimistic about results over the balance of the year."

Bluegreen, which principally derives its sales and income from three activities, land and timeshare resort sales and the financing of customers' purchases, reported sales of $26.5 million for the current quarter, down from $33.3 million for the three months ended Oct. 1, 1995. Net income declined to $576,000 ($.03 per share) from $2.3 million ($.11 per share) a year ago.

The increase in resort timeshare sales during the current quarter was more than offset by a reduction in land sales which totaled $8.7 million. The company attributes the reduction in land sales primarily to (i) construction and marketing delays caused by Hurricane Fran, (ii) greater sales deferred under percentage of completion accounting in the current quarter versus the comparable quarter last year, (iii) a reduction in sales from the Rocky Mountain region where the company recorded a one-time bulk sale in the amount of $2.5 million in the prior year quarter and (iv) a temporary shortage of ready-to-market inventory in certain of the company's primary markets.

The company recently acquired some exciting properties in its principal land markets. In June, it purchased some 3,600 acres located in the Hill Country of Texas located outside of San Antonio. The property features frontage along the Guadalupe River and is characteristic of the Texas Hill Country with rolling meadows and mature trees. Bluegreen also acquired 1,000 acres located in the coastal region of North Carolina midway between Myrtle Beach and Wilmington. The property features frontage on the Lockwood Folly River, a deep water waterway three miles from the Atlantic Ocean Inlet and the Intracoastal Waterway.

The company commenced repurchasing shares under its previously announced 500,000 share program during the second quarter. As of Sept. 29, 1996, nearly half of the authorized shares had been repurchased.

Bluegreen is engaged in the acquisition, development, marketing and sale of recreational land, residential land and vacation ownership resorts. The company operates in 21 of the United States and is headquartered in Boca Raton. -0-

                        BLUEGREEN CORP.
                    RESULTS OF OPERATIONS

                                        Unaudited
                          --------------------  -------------------
                           Three Months Ended    Six Months Ended
                           Sept. 29,   Oct. 1,   Sept. 29,  Oct. 1,
                             1996       1995       1996      1995
                          --------------------  -------------------

REVENUES:

Lot sales                  $  17,895 $  26,634    $ 38,452  $ 45,066
Timeshare sales                6,757     2,863      12,772     5,454
Home sales                     1,799     3,761       4,009     7,379
Total sales of real estate    26,451    33,258      55,233    57,899

Interest income                1,550     2,177       2,994     4,364

Total operating revenues      28,001    35,435      58,227    62,263
                          ====================  ====================

EXPENSES:

Cost of sales                 13,199    17,223      27,652    29,414

Selling, general and
  administrative expense      12,450    12,240      25,503    22,114

Interest expense               1,182     1,858       2,471     3,848

Provisions for losses            280       225       8,749       380

Total operating expenses      27,111    31,546      64,375    55,756
                          ====================  ====================

Income (loss) from
  operations                     890     3,889      -6,148     6,507

Other income                      87        41         135        69

Income (loss) before
  taxes                    $     977 $   3,930    $ -6,013  $  6,576

Income (loss) after taxes  $     576 $   2,319    $ -3,548  $  3,906

Earnings (loss) per share  $    0.03 $    0.11    $  -0.17  $   0.18

Weighted average number of
  common and common stock
  equivalents used to calculate
  primary and fully diluted
  earnings (loss) per share   21,199    21,798      20,886    21,738
                          ====================  ====================

-0-

This release contains certain forward-looking statements that are subject to various risks and uncertainties, including, but not limited to, demand and competition for the company's real estate products, the availability of attractive new projects, and the interest rate environment, which could cause actual results to differ materially. These and other risks and uncertainties are detailed in the company's Securities & Exchange Commission filings.

CONTACT: Bluegreen Corp., Boca Raton

Mary Jo Wiegand, Vice President and Controller

407/361-2700