ILX Resorts skids to 2Q ‘08 loss

SR179 road construction in Sedona weights on revenue

Sedona, AZ - August 20, 2008 - ILX Resorts Incorporated (AMEX: ILX), a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the western United States, and owner of Los Abrigados Resort & Spa in Sedona, AZ, announced a net loss for the second quarter of 2008 of $161,198 or $0.05 per share both basic and diluted. This compares with net income of $141,746 or $0.04 per share both basic and diluted for the same period in 2007.

Revenue for the three months ended June 30, 2008 was $11.5 million as compared to $12.6 million for the comparable period in 2007. The decrease in revenue reflects reduced sales from the Rancho Mañana and Sedona sales offices due to the closure of the Rancho Mañana sales office in June 2007 and decreased tours in Sedona in large part as a result of major road construction, offset by increased sales at the Tucson sales office.

“The significant road construction in Sedona impacted our operations in the second quarter and will continue in the third quarter as well,” said Joe Martori, Chairman and CEO. “We look forward to the completion of the road improvements which were designed to streamline traffic while enhancing visual appeal, so that we can move forward with the planning and ultimate development of Legacy Park.” He continued, “While road construction has been underway, we have taken the opportunity to add to our Sedona inventory with construction of eighteen one and two bedroom units at Premiere Vacation Club at Bell Rock and two new luxury platinum units at Los Abrigados. I am also pleased to report that in June 2008 we fully settled the ongoing litigation and are focused in our efforts to return to profitability.”

ILX Resorts acquires, develops, and operates premier timeshare resorts primarily in the western United States that provide its owners with extraordinary vacation experiences. ILX's portfolio of world-class properties includes eight resorts in Arizona, one in Indiana, one in Colorado, one in San Carlos, Mexico and land in Puerto Peñasco (“Rocky Point”), Mexico and Sedona, Arizona, both of which are in the final planning stages. It also, through Premiere Vacation Club, has acquired, and continues to acquire, inventory at the Carriage House in Las Vegas and in addition has acquired inventory at the Scottsdale Camelback Resort in Scottsdale, Arizona. For more information, visit: www.ilxresorts.com.

source: ILX Resorts
 

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