BOCA RATON, Fla. – Oct. 28, 2004 – Bluegreen Corporation (NYSE:BXG), a leading U.S. developer and marketer of drive-to vacation ownership resorts ("Bluegreen Resorts") and planned residential and golf communities ("Bluegreen Communities"), has announced record financial results for the third quarter and nine months ended September 30, 2004.

George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "Total operating revenues and net income for the first nine months of 2004 exceeded total operating revenues and net income for all of 2003. We are very pleased with the current pace of sales of new and existing Resort and Communities properties.

"The quality of these properties, the effectiveness of our marketing programs and the dedication of our people are driving the growth of the Bluegreen Vacation Club. Membership in the Club rose 20% to approximately 90,000 members during the first nine months of 2004 from approximately 75,000 members at December 31, 2003."

Net income for the third quarter of 2004 increased 60% to $16.3 million, or $.54 per diluted share, on approximately 30.6 million weighted average common and common equivalent diluted shares outstanding ("shares outstanding"), compared to net income of $10.2 million, or $.36 per diluted share, on approximately 29.4 million shares outstanding, for the same period last year. Net income for the first nine months of 2004 rose 62% to $30.1 million, or $1.02 per diluted share, on approximately 30.6 million shares outstanding, from net income of $18.6 million, or $.68 per diluted share, on approximately 29.1 million shares outstanding, for the same period last year.

Record net income for the 2004 three and nine month periods included a one-time, pre-tax settlement expense of $1.3 million, or $0.03 per diluted share, related to a previously disclosed sales tax assessment with the State of Wisconsin Department of Revenue ("DOR"). Bluegreen believes this to be a favorable settlement and is pleased to have resolved this matter with the DOR.

Resorts sales in the third quarter of 2004 increased 15% to a record $96.1 million from $83.9 million in the same period last year. Resorts sales for the first nine months of 2004 rose 23% to $235.9 million from $191.1 million for the comparable prior year period.

Communities sales in the third quarter of 2004 increased 163% to a record $65.8 million from $25.0 million in the same period last year. For the first nine months of 2004, Communities sales rose 114% to $140.5 million from $65.7 million in the same period last year.

Recognition of Communities sales in the third quarter of 2004 was impacted positively by approximately $2.8 million, due to the effect of percentage-of-completion accounting.

As of September 30, 2004, approximately $34.3 million and $13.8 million of sales and profits, respectively, were deferred under the percentage-of-completion method of accounting. Significantly all of these deferred sales and profits were related to the Communities business. It is expected that these amounts will be recognized in future periods ratably with the development of the projects.

Total positive net interest spread (interest income less interest expense) was $2.8 million in the third quarter of 2004 as compared to $791,000 in the third quarter of 2003. Interest income increased primarily as a result of a higher average portfolio of vacation ownership notes receivable during the third quarter of 2004 compared to the same period one year ago, while interest expense declined primarily as a result of more interest being capitalized due to increased resort construction activity.

Gain on sale of notes receivable in the third quarter of 2004 increased to $3.3 million from $476,000 in the same period last year, due primarily to the completion of the previously announced $156.6 million private offering of timeshare receivable-backed securities. In addition, $45.2 million of timeshare receivables were sold during the third quarter of 2004 compared to $8.4 million in the third quarter of 2003.

Q3 2004 vs. Q3 2003 Highlights

-- Net income increased 60% to $16.3 million, or $.54 per diluted share

-- Bluegreen Resorts sales rose 15% to $96.1 million

-- Bluegreen Communities sales up 163% to $65.8 million

-- Total operating revenues increased 48% to $190.6 million

Bluegreen Corporation
John Chiste, 561-912-8010
Chief Financial Officer
john.chiste@bxgcorp.com

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