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[Premiere Vacation Club]

Neither ILX Resorts or Premiere Vacation Club ("PVC") has declared bankruptcy. The bullet points below explain the situation at Rancho Manana Resort.

PVC owns units (and an undivided interest in the common areas) at Rancho Manana Resort. It pays dues to the Rancho Manana homeowners association (“HOA”), as does the developer, Rancho Manana Ventures, for its units, and as do the Private Residence Club (“PRC”) members for their units.

• The developer, Rancho Manana Ventures (“Developer”), is not affiliated with PVC or ILX Resorts in any way.

• The Developer controls the Board of the HOA and also manages the resort.

• The Developer is in default on its borrowings from the bank, which are secured by the Developer’s units and adjacent undeveloped land, and the Developer is also delinquent in its payments to the HOA. The bank sought to foreclose on the Developer’s units and the undeveloped land.

• PVC’s units have been released from the bank’s loan (as have the PRC units) and are not a part of the foreclosure proceedings.

• The Developer sought to forestall the foreclosure proceedings by filing Chapter 11 bankruptcy for Rancho Manana Ventures (the Developer). In this filing, it disclosed that it owed substantial sums to the HOA. Under bankruptcy rules, the HOA will not be able to collect any amounts it was owed from the Developer at the time of the filing until the bankruptcy court approves a plan of distribution, which may take some time.

• The HOA is not in bankruptcy, however, without the funds the Developer owes the HOA, the HOA will be unable to operate the resort at appropriate guest service levels, if at all.

• The Developer advised us that, given its inability to pay its obligations to the HOA, it could not continue to keep the resort open.

• Upon this news, and with no certain date of relief from this situation, ILX and PVC began making alternative arrangements for PVC Owners scheduled to stay at Rancho Manana in the upcoming weeks, either at other resorts in the area or other PVC locations.

• ILX also advised Interval International (“II”) of the situation and II began to relocate its inbound exchange guests to other II affiliate resorts with the intent of creating the least disruption to its members as possible.

• This is a temporary situation of, at present, unknown duration. It does not affect PVC’s ownership of its units nor does it affect PVC Owners’ ability to use time at Rancho Manana once this situation is addressed, which will be likely to occur through the sale or other transfer of ownership of the Developer’s interest in the property to a new owner. Again, PVC’s ownership interests will not be affected by any such transaction.

• At such time as we are assured that PVC guests will have a guest experience at Rancho Manana that meets PVC standards and without risk of interruption, we will resume scheduling Owners to stay. In the interim, we have ceased making room reservations for Rancho Manana. For prudence, we have also removed Rancho Manana from the wall tours at resorts with on-site (or nearby) sales offices to avoid any expectation of near term use by tour guests.