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 its results for the three months ended March 31, 2002.

Revenue for the first quarter of 2002 of $11.8 million was the highest for any first quarter in the Company’s history and 4.4% greater than the same period in 2001. Revenues from the sale of vacation ownership interests increased by 10.2%. Net income for the first quarter 2002 of $747,000, inclusive of a gain on a sale-leaseback transaction, was a 95.5% increase over $382,000 for the same period in 2001. Net income for the first quarter 2002, before the gain on the sale-leaseback transaction, reflects an 11.3% increase over the same period in 2001.

Earnings per share before the gain were $0.14 for the first quarter 2002, as compared to $0.11 for the comparable period in 2001. Fully diluted earnings per share, before the gain, increased to $0.14 for the first quarter 2002 as compared to $0.11 for the first quarter 2001. Earnings per share including the gain were $0.25, an increase of 127% over 2001, while fully diluted earnings per share including the gain were $0.24, growing by 118%.

“We are pleased to report continued revenue growth as well as the continuation of percentage growth in net income and earnings per share that exceed growth in revenue,” said Joe Martori, Chairman and CEO. “While tourist travel continued to be a challenge for the first two months of the year, we experienced a return to more normal patterns in the last month of the quarter.”

“We continued to see increased profits in the sale of vacation ownership interests despite the start up costs associated with the opening of our Las Vegas sales center in mid-January. The performance of three of our existing locations showed significant improvement over the first quarter of the prior year. We expect this growth to continue and are optimistic about the potential of the new Las Vegas sales venue.”

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 in San Carlos, Mexico, and land adjacent to an existing resort in northern Arizona for which the Company holds development rights. The Company markets its vacation ownership interests primarily through its Premiere Vacation Club. Internet users can visit the ILX Resorts Incorporated web site at http://www.ilxresorts.com.

Quarter Ended March 31, 2002 2001:

* Revenues $11,839,290 $11,258,970

* Operating Income 1,731,966 1,384,870

* Net Income 747,458 381,509

* Net Income Per Share, Basic 0.25 0.11

* Net Income Per Share, Diluted 0.24 0.11

* Total Assets 73,887,372 66,718,915

* Total Shareholders’ Equity 26,312,730 25,945,950

* Common Shares Outstanding

at period end 2,907,481 3,319,505

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