ILX Resorts - Margaret Eardley CFO- Joe Martori ? - Sedona Vacation Club - Los Abrigados INCOMPENTENT MANAGEMENT - PUMP AND DUMP STOCK SPECIALIST - JERKS Phoenix Arizona

I've been a stockholder of this company watching it lurch
from one hare-brained scheme to another. There was the
famous Red Rocks Collection of body ointments--a family
member as president, losses from inception, but hey,
that was okay with Chairman Joe Martori because they
were going to make it up selling the products to their
resorts arm. The write-off followed. Then there
was the Red Rocks catalogue of Southwestern junque.
Don't know what became of that. Then there was
the Debbie Reynolds connection. Going to sell time
shares at her Vegas property. That was a total flop. Going to have her promoting the joint Debbie-Red Rocks line. Pfft.

As for the Varsity Clubs, well, the first one, at Notre Dame, pretty well flopped (a debatable opinion, I know; how does one define "flopped''?; let's say it fell short of projections as to time share sales). Maybe if Chairman Martori had launched the concept at a year-round resort, instead of at his alma mater that is butt-deep in snow part of the year, he wouldn't have wondered why not so many people wanted to buy units.

Along the way, we've had a succession of sleazy PR firms paid in warrants, a bond underwriter that couldn't deliver, a public offering by a respectable firm followed by such miserable operating results that the underwriter seems to barely remember the corporate name, a dispute with the auditors, and a reverse stock split that, surprise surprise, has been followed by the share price declining to the pre-reverse level. Somewhere in the midst of this brillance, I recall Martori issuing a press release complaining darkly of people pushing the stock price down for nefarious reasons. People sell this stock because management has proven itself to be utterly incompetent. The sellers were smarter than I; I still own ILX.

I haven't seen a press release out of Phoenix on the company posting reliable numbers. But I see these clowns chasing people who've insulted them on the Internet. ILX's stock price tells a reasonable person everything he needs to know about ILX, Joseph Martori, and Nancy Stone.

My personal feeling is that few things could be more defamatory than this management's record. Unfortunately for those of us who own the stock, the record is--as the lawyers would say--defamatory but true. I'd had a faint hope ILX would stumble into profitability for long enough to pop the stock--or that failing, that Martori would find a corporate buyer. Faint hope indeed. Instead of running the company, senior ILX management monitors the message boards for abuse. I hope you find this offensive enough, guys.

Bud
Glendale, Arizona
U.S.A.