Date: Fri, 19 Dec 1997 02:12:19 GMT Server: GoSite-SSL/2.3 Connection: close Content-Type: text/html Last-Modified: Fri, 14 Nov 1997 18:40:58 GMT ETag: "79af2-1b8f-346c9b3a" Content-Length: 7055 Accept-Ranges: bytes ILX Resorts News Release for October 21, 1997

NEWS RELEASE




ILX RESORTS ANNOUNCES RECORD REVENUE AND EARNINGS


PHOENIX, AZ - October 21, 1997 -- ILX Resorts Incorporated (NASDAQ: ILEX) announced today the highest revenue for a third quarter and for any quarter in the Company's history and the highest net income for any third quarter in its history. Third quarter 1997 revenue of $10.08 million is more than 19% greater than 1996, and third quarter 1997 net income of $637,000 increased by more than 27% over 1996.

"Our record third quarter revenue reflects the strong growth of our core business: sales of vacation ownership interests," said Joe Martori, chairman and chief executive officer of ILX Resorts Incorporated. "While all of our properties performed well, we continue to he particularly pleased with the sales and profit contributions of our first Varsity Clubs of America project near the University of Notre Dame. Net income of ILX Resorts for the quarter surpassed any previous third quarter, in spite of the impact of start up expenses of two sales offices, including a pre-opening sales office for our second Varsity Clubs of America, which is presently under construction near the University of Arizona in Tucson. "

ILX Resorts Incorporated develops, operates and markets upscale vacation ownership resorts and hotels. It is currently marketing interests in projects located in Sedona and Payson, Arizona, and in Hawaii, Colorado, Florida and Mexico. Its wholly-owned subsidiary, Varsity Clubs of America Incorporated, is developing all-suite, interval ownership hotels near prominent universities, with its first project near the University of Notre Dame in Indiana and second within three miles of the University of Arizona in Tucson.


Quarter Ended Sept. 30, Nine months Ended Sept. 30, Fiscal Year Ended Dec. 31,
1997 1996 1997 1996 1996 1995
Revenues $10,081,841 $8,472,019 $26,862,815 $24,311,617 $32,150,809 $32,706,130
Net Income $637,019 $498,787 $1,166,046 $850,758 $1,051,116 $624,663
Net Income Per Share $0.04 $0.03 $0.08 $0.06 $0.08 $0.05
Total Assets $43,637,521 $40,796,760 $43,637,521 $40,796,760 $41,274,905 $37,752,513
Total Shareholders Equity $16,741,910 $14,986,454 $16,741,910 $14,996,454 $15,175,120 $13,775,102
Common Shares Outstanding 13,462,162 13,019,426 13,462,162 13,019,426 13,024,290 12,625,757

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Contacts:
Joseph P. Martori, Chairman and CEO -- (602) 957-2777





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