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 six months ended June 30, 2002. The Company set records for revenues, net income and earnings per share, all, respectively, exceeding any prior period in the history of ILX Resorts.
Revenue for the second quarter of 2002 of $16.1 million was the highest in the Company’s history and 22.0% greater than the same period in 2001. Revenue for the six months ended June 30, 2002 of $27.9 million was also a record, and a 14.3% increase over 2001. Net income of $1.2 million for the second quarter and $2.0 million for the six months reflects an increase of 50.0% and 81.8% more than the prior year, respectively.

Earnings per share were $0.41 for the second quarter and $0.66 for the six months ending June 30, 2002. This compares favorably with 2001 earnings per share of $0.23 for the second quarter and $0.34 through June 30, 2001. Fully diluted earnings per share increased to $0.40 for the second quarter and $0.65 year-to-date from $0.22 and $0.33 for the same periods in 2001, representing growth of 81.8% and 97.0%.

“We are very pleased to report the highest revenue and earnings for any quarter in the history of ILX Resorts. As has been previously reported, our percentage growth in net income and earnings per share continues to surpass the growth in revenue,” said Joe Martori, Chairman and CEO. “Our operating performance was driven by our core business of sales of vacation ownership interests. In addition to generating sales to first-time buyers, we continue to see a positive trend in additional sales and upgrades to existing ILX owners. We will continue to monitor our operations for such trends and capitalize on them when possible.”

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. It also, through Premiere Vacation Club, has acquired, and continues to acquire, inventory at the Carriage House in Las Vegas. 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.

Selected Financial Data

Quarter Ended June 30 Six Months Ended June 30

2002 2001 2002 2001:

* Revenue $16,061,028 $13,157,219 $27,900,318 $24,416,189

* Operating Income $2,521,752 $1,893,886 $4,253,718 $3,278,757

* Net Income $1,224,101 $763,495 $1,971,559 $1,145,004

* Net Income Per Share - Basic $0.41 $0.23 $0.66 $0.34

* Net Income Per Share - Fully Diluted $0.40 $0.22 $0.65 $0.33

* Total Assets $76,277,510 $67,139,969 $76,277,510 $67,139,969

* Total Shareholder Equity $27,469,973 $26,344,559 $27,469,973 $26,344,559

* Common Shares Outstanding

at Period End 2,927,293 3,225,405 2,927,293 3,225,405

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