Date: Fri, 19 Dec 1997 02:12:05 GMT Server: GoSite-SSL/2.3 Connection: close Content-Type: text/html Last-Modified: Tue, 16 Dec 1997 23:01:41 GMT ETag: "79b0f-d82-34970855" Content-Length: 3458 Accept-Ranges: bytes Press Release - ILX sells Lomacasi interest



NEWS RELEASE

FOR IMMEDIATE RELEASE





ILX RESORTS SELLS INTEREST IN LOMACASI COTTAGES

PHOENIX, AZ – December 9, 1997 -- ILX RESORTS INCORPORATED (NASDAQ: ILEX) today announced the sale of its partnership interest in Lomacasi Cottages, a 20-unit hotel project in Sedona, Arizona, effective December 5, 1997. The selling price of $2,850,000 was paid through $2,250,000 in purchase-money debt assumption by the buyer and surrender by the buyer for redemption by ILX Resorts of 500,000 shares of common stock valued at $1.25 per share.

"In light of our emphasis on our Varsity Clubs of America and Premiere Vacation Club concepts, and the recently enacted Sedona Lodging Ordinance, the disposition of our interest in Lomacasi made good business sense," said Joe Martori, chairman and chief executive officer of ILX Resorts. "Additionally, many of our initial objectives relating to Lomacasi will be realized through the retention of a management contract with the Buyer that accompanied the sale."

ILX Resorts 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 Colorado, Florida, Hawaii and Mexico. Its wholly-owned subsidiary, Varsity Clubs of America Incorporated, is developing all-suite, interval ownership hotels near prominent universities, with its first completed project near the University of Notre Dame in Indiana and second under construction within three miles of the University of Arizona in Tucson.

This news release includes statements that may contribute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, those factors detailed by ILX Resorts Incorporated in its filings with the Securities and Exchange Commission.

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