ILX Resorts to Preserve History at Kohl's Ranch

Press Release
January 4, 2002
PHOENIX, AZ -- ILX Resorts Incorporated (AMEX: ILX) a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the western United States, Thursday announced its plans to preserve the history of Kohl's Ranch in the Historical Horton House.

Due to structural issues, the building known in recent years as the Cowboy Bar, on the site of the Kohl's Ranch Lodge property, will be disassembled. Lumber and other components of the building, including the original bar, will be preserved and used in the construction of a new building on the site.

``We are pleased to honor the history of the area and the site by continuing the tradition of incorporating the elements of the past into the foundation of the future,'' said Joe Martori, chairman and chief executive officer.

He continued, ``Kohl's Ranch history shows that the Cowboy Bar was originally built from the lumber from the old Horton School. We will carry on that legacy by building the new facility, to be known as the Historical Horton House, in part with the lumber retained from the Cowboy Bar.

``The bar top itself, in which generations of families have engraved their names, will also be a focal point of the Historical Horton House. This new facility will provide luxurious guest accommodations with an ambiance that embraces the heritage of its site, including the works of Zane Gray, as well as artwork and objects of lasting interest from the region.

``The original bar top and the other historical items featured in the Historical Horton House will be available for viewing by the public from time to time, when the guest accommodations are not in use.''

Martori added, ``ILX Resorts is proud to be continuing our policy of preserving and sharing the history of the many special places which are home to our resorts. Our historic Crags Lodge in Estes Park, Colo., is listed on the National Register of Historic Places.

``In its main floor lobby and dining room, amidst large stone fireplaces, polished hardwood floors and a 100-foot antique glass wall overlooking the town, are photographs, furniture and other treasures dating back to the Lodge's 1914 origins.

``Currently, in celebration of Sedona's centennial anniversary in 2002, we are pursuing the establishment of a museum at our Los Abrigados Lodge in uptown Sedona to share Sedona's rich and colorful history, including photographs from the company's collection, as well as photographs and artifacts provided by some of the founding families of Sedona and others.''

ILX Resorts Incorporated develops, operates and markets upscale vacation ownership resorts. The company's current portfolio of resorts consists of six resorts in Arizona, one in Indiana, one in Colorado, one in San Carlos, Mexico, and land adjacent to an existing resort in northern Arizona for which the company holds development rights.

It also, through Premiere Vacation Club, has acquired and continues to acquire inventory at The Carriage House in Las Vegas. The company markets its vacation ownership interests primarily through its Premiere Vacation Club. Internet users can visit the ILX Resorts Incorporated Web site at http://www.ilxresorts.com.

For more information, contact Joseph P. Martori, chairman at 602/957-2777 or Margaret Eardley, chief financial officer, at 602/957-2777.

This news release constitutes certain ``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 from time to time 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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Contact: 

     ILX Resorts Incorporated, Phoenix
     Joseph P. Martori, 602/957-2777
     Margaret Eardley, 602/957-2777