ILX Resorts

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ILX RESORTS LOCATION NAMED THE MOST BEAUTIFUL IN AMERICA

PHOENIX, ARIZONA – May 21, 2003 – USA Today (USA Weekend Annual Travel Report) has named the red rock country of Sedona, Arizona as the most beautiful place in America. Since 1989, breathtaking Sedona has been the heart of ILX Resorts Incorporated’s operations. Beginning with the Los Abrigados Resort & Spa on the banks of Oak Creek, to its collection of four unique resorts in red rock country today, its flagship vacation ownership sales center surrounded by fabulous rock formations, and its Sedona Spa line of botanical treats for bath, body and hair, ILX Resorts Incorporated embraces and celebrates the wonders of Sedona.

“It has been a joy to share this very special part of America with our guests and vacation owners,” said Nancy Stone, President of ILX Resorts. “Through our marketing outreach we have had the privilege of introducing thousands of Americans to the unparalled, timeless beauty and mystique of Sedona, and have had the pleasure of making possible their return again and again through vacation ownership with ILX Resorts. This recognition of Sedona as the most beautiful place in America will bring many new visitors. We look forward to the opportunity to welcome and serve them as they experience Sedona’s splendor for the first time, and to be their vacation home as they are drawn back to her beauty and tranquility in the years to come.”

ILX is committed to providing its guests and owners with vacations in places of spectacular natural beauty. Joining Sedona in awe-inspiring beauty are the majestic Rocky Mountains of Colorado, home of ILX’s first resort, and other scenic retreats ranging from the crystal blue waters of the Sea of Cortez to the lush pine forests of Arizona’s high country. All of these magnificent places are home to ILX’s Premiere Vacation Club members who may choose among these and other wonderful destinations to enjoy precious time with friends and family.

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 early 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.

For more information, contact Joseph P. Martori, Chairman or Margaret Eardley, Chief Financial Officer, at 602-957-2777.

This news release may include "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company´s control. Actual results could differ materially from these forward-looking statements as a result of a number of factors, including but not limited to, economic conditions, the Company´s need for additional financing, intense competition in various aspects of its business, the risks of growth, its dependence on key personnel, and other risks detailed in ILX´s Securities and Exchange Commission reports. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved. ILX Resorts Incorporated does not assume any duty to publicly update or revise the material contained herein.

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