Bluegreen Communities continues to experience low consumer demand for its homesites. As previously announced, Bluegreen’s Board of Directors has engaged advisors to explore strategic alternatives for Bluegreen Communities, including a possible sale of the division. The announcement regarding strategic alternatives may have a material adverse effect on Bluegreen Communities’ operations, may not result in the pursuit or consummation of a transaction and if a transaction is ultimately consummated, such transaction may not result in improvements to our financial condition and operating results. As of March 31, 2011, the carrying value of the Bluegreen Communities inventory was $82.6 million. Additional information regarding the strategic alternatives and operations of Bluegreen Communities will be available in the Company’s Form 10-Q, which we expect to file with the SEC on or about May 13, 2011.

INTEREST INCOME AND INTEREST EXPENSE

Net interest spread includes the excess of interest earned on $682.0 million of notes receivable (which notes receivable are as of March 31, 2011) net of interest expense incurred on $538.7 million of related receivable-backed debt as of March 31, 2011. Net interest spread decreased to $14.1 million in Q1 2011 from $16.2 million in Q1 2010, as the outstanding balance of Bluegreen’s vacation ownership notes receivable portfolio has continued to decrease from historical levels. Bluegreen expects its notes receivable portfolio to continue to decrease in the near term as more of the Resorts VOI sales are realized in cash. Other interest expense, which is primarily comprised of interest on lines of credit, notes payable and our junior subordinated debentures, decreased to $4.9 million in Q1 2011 from $5.8 million in Q1 2010.

ABOUT BLUEGREEN CORPORATION

Founded in 1966 and headquartered in Boca Raton, FL, Bluegreen Corporation (NYSE:BXG) is the leader in providing Colorful Places to Live and Play® through its vacation ownership resort and residential real estate businesses. Bluegreen Resorts manages, markets and sells the Bluegreen Vacation Club, a flexible, real estate-based vacation ownership plan with more than 160,000 owners, over 56 owned or managed resorts, and access to more than 4,000 resorts worldwide. Bluegreen Communities has developed master-planned residential and golf communities primarily in the southern and southeastern U.S., and has sold over 55,000 homesites. We also offer a portfolio of comprehensive, turnkey, fee-based service resort management, financial services, customer generation and sales solutions to third-party developers and lenders. For more information, visit www.bluegreencorp.com.

Statements in this release may constitute forward looking statements and are made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based largely on expectations and are subject to a number of risks and uncertainties including, but not limited to, the risks and uncertainties associated with economic, credit market, competitive and other factors affecting the Company and its operations, markets, products and services; the general risks associated with strategic transactions, including the Company’s ability to identify desirable strategic alternatives for its Communities business, the level of interest of third parties in pursuing a possible strategic transaction for Communities, the ability to negotiate a mutually acceptable definitive agreement to effect a possible strategic transaction, and, if that occurs, the consummation of the transaction and the potential negative impact on the Company’s customers, employees and others of the Company exploring strategic alternatives and opportunities and of any specific strategic alternative or opportunity selected by the Company; the Company’s efforts to improve its liquidity through cash sales and larger down payment on financed sales may not be successful; the performance of the Company’s vacation ownership notes receivable may deteriorate and the FICO^® score-based credit underwriting standards may not have the expected effects on the performance of the receivables; the Company may not be in a position to draw down on its existing credit lines or may be unable to renew, extend or replace such lines of credit; the Company may require new credit lines to provide liquidity for its operations, including facilities to sell or finance its notes receivable; the Company may not be able to successfully securitize additional timeshare loans and/or obtain adequate receivable credit facilities in the future; additional impairment charges related to our real estate inventories, notes receivable or other assets may be required; risks relating to pending or future litigation, regulatory proceedings, claims and assessments; sales and marketing strategies related to Resorts and Communities properties may not be successful; retail prices and homesite yields for Communities properties may be below the Company’s estimates; marketing costs may increase and not result in increased sales; sales to existing owners may not continue at current levels or decrease; fee-based service initiatives may not be successful and may not grow or generate profits as anticipated; deferred sales may not be recognized to the extent or at the time anticipated; and the risks and other factors detailed in the Company’s SEC filings, including those contained in the “Risk Factors” section of such filings.