ILX Resorts Announces Upcoming Groundbreaking for Expansion at Varsity Clubs of America -- South Bend.

PHOENIX -- ILX Resorts Incorporated (AMEX: ILX), a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the western United States, announced today the impending commencement of construction of 24 additional suites at Varsity Clubs of America -- South Bend Chapter ("Varsity Clubs").

The 24 new units will be an expansion of the 62 all-suite hotel located just three miles from the Notre Dame campus. Varsity Clubs exudes the spirit and tradition of Notre Dame, with extensive original sports memorabilia displayed throughout the property. Varsity Clubs is the official hotel of the University's Monogram Club. This season, as Notre Dame commemorates its seven Heisman Trophy winners, the hotel will host all the living winners and the families of Angelo Bertelli and Leon Hart. Varsity Clubs has also had the honor of showcasing the Heisman Trophies of Notre Dame football greats Angelo Bertelli and John Lattner.

The planned units consist of one and two-bedroom suites similar in size to the existing spacious suites, which range from 560 square feet to 975 square feet. Luxury units are as large as 1,300 square feet. All suites feature kitchens, dining and living areas, as well as the hotel's country club amenities including an indoor/outdoor pool, hot tub, workout facilities, Stadium Sports Grill with 8' x 10' television screen and a library and gathering places complete with fireplaces and overstuffed furniture for all of the comforts of home. Varsity Clubs served as the home for head coach Charlie Weis upon his arrival at Notre Dame through the completion of his permanent residence in South Bend. For years, the coaches of the many Notre Dame athletic teams have entrusted recruits and their parents to Varsity Clubs' hospitality.

Varsity Clubs operates as a traditional hotel year-round, serving university, corporate and leisure travelers. During Notre Dame football season, however, the hotel hosts its most special customers, its Football Week owners. These owners have purchased in perpetuity the use of a spacious suite and all the common area amenities for stays ranging from one football weekend each season to the entire home game schedule.

Demand for this popular concept is a driving force for the 24-unit expansion. "We are delighted to be able to make the Varsity Clubs experience available to even more ticket holders, alumni and parents of students," said Joe Martori, chairman and CEO of ILX Resorts Incorporated and a Notre Dame alumnus. He continued, "The tremendous demand for accommodations during football season, even more frenzied this year, bodes very well for the football season memberships in our new units. We are excited about the opportunities it presents for us as a company. Nevertheless, we value the reputation we have built with Notre Dame and its constituents and we intend to continue our past practices of emulating the university's example by maintaining reasonable prices, both for ownership and traditional hotel guests, even when scarcity of supply and rabidity of demand would allow otherwise."

ILX Resorts acquires, develops, and operates premier timeshare resorts primarily in the western United States that provide its owners with extraordinary vacation experiences. ILX's portfolio of world-class properties includes eight resorts in Arizona, one in Indiana, one in Colorado, one in San Carlos, Mexico, and land in Puerto Penasco ("Rocky Point"), Mexico, and Sedona, Ariz., both of which are in the early planning stages. It also, through Premiere Vacation Club, has acquired, and continues to acquire, inventory at the Carriage House in Las Vegas and, in addition, has acquired inventory at the Scottsdale Camelback Resort in Scottsdale, Ariz. For more information, visit: www.ilxresorts.com.

This news release may include "forward-looking statements." 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. Actual results could differ materially from these forward-looking statements as a result of a number of factors, including, but not limited to, economic conditions, the company's need for additional financing, intense competition in various aspects of its business, the risks of growth, its dependence on key personnel, and other risks detailed in ILX's Securities and Exchange Commission reports. 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. ILX Resorts Incorporated does not assume any duty to publicly update or revise the material contained herein.