Varsity Clubs of America -- Tucson Chapter is an all-suite, conveniently located property featuring "city club" amenities including health and fitness facilities; a business center and meeting rooms; a lush courtyard oasis with swimming pool, spa and outdoor dining; the Stadium Sports Grill, accented with a wood basketball floor, big screen television, Robert Miley athletic murals and bleacher-style seating; a billiards room; and a library with a fireplace and cigar humidor. This 62-suite resort hotel offers a number of ownership options as well as accommodations for nightly hotel guests.

This is the second Varsity Clubs of America that ILX Resorts has opened. The first, located near the University of Notre Dame, opened its doors in September 1995. The company plans to open additional Varsity Clubs in as many as five college towns in the western United States over the next three years.

"We have truly found a niche market with Varsity Clubs of America," said Joe Martori, chairman and chief executive officer of ILX Resorts. "These properties provide a number of deluxe vacation ownership options to alumni, collegiate sports enthusiasts, parents of students and other university supporters who return to campus during peak demand times, as well as to local residents who, as vacation owners, enjoy the city club facilities, food and beverage discounts, special room rates for their guests, and the opportunity to exchange their time for vacations at other resorts worldwide. In addition, Varsity Clubs -- Tucson will fill the city's need for a conveniently located upscale resort hotel in the university area."

Varsity Clubs of America -- Tucson Chapter is located at 3855 East Speedway Blvd., Tucson, Ariz. 85716 (northwest corner of Speedway Boulevard and Alvernon), within three miles of the University of Arizona. For hotel reservations, call 888/59-4CATS.

ILX Resorts develops, operates and markets upscale vacation ownership resorts. The company owns, operates and markets interests in five properties in Arizona and Colorado, as well as Varsity Clubs of America properties in Indiana (adjacent to the University of Notre Dame) and Tucson (within three miles of the University of Arizona). In addition, the company markets interests in resorts located in Boca Raton, Fla., and Puerto Vallarta, Mexico. Internet users can visit the ILX Resorts Inc. Web site at http://www.ilxinc.com.

This news release constitutes certain "forward-looking statements" including statements regarding, among other items, the company's growth strategy, industry and demographic trends and anticipated trends in its business. Actual results could differ materially from these forward-looking statements as a result of a number of factors, including, but not limited to, the company's need for additional financing, intense competition in various aspects of its business, the risks of rapid growth, its dependence on key personnel and other risks detailed from time to time in ILX's Securities and Exchange Commission reports, including the company's prospectus dated April 8, 1998. ILX Resorts Inc. does not assume any duty to correct or update the material contained herein. For further information on ILX Resorts Inc. free of charge via facsimile, dial 1-800-PRO-INFO and enter "ILX."