Tuesday, July 22, 2008

Bluegreen Corp to be sold to Diamond Resorts International?

BOCA RATON, FL: Bluegreen Corporation (NYSE: BXG) (Bluegreen(R) or the
Company), a leading provider of Colorful Places to Live and Play(R),
announced that today, July 21, 2008, it has signed a non-binding letter of
intent relating to the acquisition of the Company at a price of $15.00 per
share by Diamond Resorts International (Diamond Resorts), which would
value this transaction at approximately $500 million, exclusive of
Bluegreen’s outstanding debt. The acquisition is subject to the completion
of due diligence and the execution of definitive agreements.

Under the terms of the letter of intent, Bluegreen has granted Diamond
Resorts an exclusive right of negotiation through September 15, 2008,
during which time Diamond Resorts will conduct more extensive due
diligence.

Diamond Resorts, based in Las Vegas, Nev., is one of the largest vacation
ownership companies in the world with 110 branded and affiliated resorts
in 14 countries with destinations throughout the continental United States
and Hawaii, Canada, Mexico, the Caribbean and Europe, more than 360,000
owners and members and more than 5,500 associates worldwide. In April
2007, Diamond Resorts acquired Sunterra Corporation for approximately $750
million.

It is envisioned that the definitive agreement whereby Diamond Resorts
would acquire Bluegreen would include a customary “go shop” provision
permitting Bluegreen to actively seek transactions that would provide
greater value to its shareholders.

Alan B. Levan, Chairman of Bluegreen’s Board of Directors commented,
“Bluegreen had previously announced that we were positioning the Company
with a view towards pursuing strategic alternatives at some point in the
next three to five years. When Diamond presented our Board with this
unsolicited, attractive offer, we believed that it was in the best
interest of our shareholders to pursue this transaction at this time.”

Mr. Levan is also the Chairman and Chief Executive Officer of Woodbridge
Holdings Corporation (”Woodbridge”), which owns 9.5 million shares of
Bluegreen’s outstanding common stock, and has indicated that Woodbridge
would be supportive of a transaction with Diamond at the terms stated in
their letter of intent.

Any proposed transaction is subject to numerous terms and conditions,
including, but not limited to, satisfactory completion of due diligence by
Diamond Resorts, the signing of a definitive agreement, and approvals by
Bluegreen’s Board of Directors and the Company’s shareholders. There can
be no assurances that negotiations will lead to the signing of a
definitive agreement, that financing for the transaction will be
available, that any proposed transaction will be accepted or approved by
the Company’s Board of Directors and shareholders, or that the sale will
be completed based on the signing of the non-binding letter of intent or
the execution of a definitive agreement, or that Bluegreen will identify
any alternative transaction that would provide greater value to its
shareholders.

Additional information regarding the terms and conditions of the
non-binding letter of intent will be filed today by Bluegreen on Form 8-K,
and will be available at www.sec.gov.

For additional information about Diamond Resorts International(R), please
visit www.diamondresorts.com

About Bluegreen Corporation

Bluegreen Corporation (NYSE:BXG) is a leading provider of Colorful Places
to Live and Play(R) through two principal operating divisions. With more
than 186,500 owners, Bluegreen Resorts markets a flexible, real
estate-based vacation ownership plan that provides access to over 40
resorts and an exchange network of over 3,700 resorts and other vacation
experiences such as cruises and hotel stays. Bluegreen Communities has
sold over 56,300 planned residential and golf community homesites in 32
states since 1985. Founded in 1966, Bluegreen is headquartered in Boca
Raton, Fla., and currently employs over 6,000 associates. More information
about Bluegreen is available at www.bluegreencorp.com.

CONTACT: Bluegreen Corporation
Tony Puleo, 561-912-8270
Chief Financial Officer
tony.puleo@bluegreencorp.com
or
INVESTOR RELATIONS:
The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President
dsullivan@equityny.com

SOURCE: Bluegreen Corporation