ILX Resorts Incorporated Announces First Quarter Results

ILX RESORTS INCORPORATED a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the Western United States, announced today its results for the three months ended March 31, 2001.

Revenue for the first quarter of 2001 of $11.3 million was the highest for any first quarter in the Company`s history and 12.5% greater than the same period in 2000. Revenues from the sale of vacation ownership interests increased by 9.6%. Net income for the first quarter 2001 of $382,000 reflects a 49% increase over $256,000 for the same period in 2000, and diluted earnings per share were $0.11 for the quarter compared to $0.06 in 2000.

“We are pleased to report both continued revenue growth and growth in net income as a percentage of that revenue,” said Joe Martori, Chariman and CEO. “From the inception of the five-year plan adopted in 1999, we have had nine consecutive quarters of profitability. Net income as a percentage of revenue for this first quarter was 32% higher than the same period in 2000.”

“Our first quarter results reflect the operations of our recently acquired hotel properties in Sedona, the relocation to our new Sedona sales center and the opening of several additional marketing venues in Sedona. We look forward to enjoying even greater benefits from these strategic acquisitons following their start-up and introduction .

ILX Resorts Incorporated develops, operates and markets upscale vacation ownership resorts. The Company`s current portfolio of resorts consists of six resorts in Arizona, one in Indiana, one in Colorado, one near completion of construction in San Carlos, Mexico, and land adjacent to an existing esort in northern Arizona for with the Company holds development rights. The Company markets its vacation ownership interests primarily through its ILX Premiere Vacation Club.