- 26 January, 2005 -

2004 ended with a bang for the Avalar Network by exceeding its ambitious growth targets by 20%. Some of 2004's highlights include: Record Revenue Sharing: A total of nearly $1,000,000 was redistributed to Avalar brokers, salespeople, and staff throughout the year underscoring the basic function of Avalar to help recruit and retain productive salespeople through revenue sharing. Please welcome our new franchisees in 2004: Lake County, CA: Phil & Gina Smoley - CPS Country Air (5 offices) San Francisco, CA: Earl Chan - Madison Hunter Sebastopol, CA: Gary Carpenter - Carpenter Property Management Mill Valley, CA: Jason Freskos - Tamalpais Mortgage Ventura, CA: Charlie & Irma Arreguin - 5 Star Homes Sales Port Hueneme, CA: Tino & Gabi Montelongo - TIGA, Inc. (2 offices) Cloverdale, CA: Gary Crosby - CPS - Wine Country Fulton, CA: Carol Rogers & Beverly Ackerman - CPS Foxglove Properties Oakmont, CA: Duane Margreiter - CPS Property Solutions Healdsburg, CA: Diana Blakeley & Cheryl Gordon - CPS Healdsburg Santa Rosa, CA: Francis Cunnane - CPS - Santa Rosa, West Orlando, FL: George Wilkinson - Avalar Real Estate Services, Inc. Tampa, FL: Jim Coolidge - Coolidge Realty, Inc. (2 offices) Sarasota, FL: Mary Beth & Greg Hudson - Avalar Real Estate of Sarasota Orlando, FL: Donavan Carr & Josh Harris - Avalar VIP, Orlando East Hollywood, FL: Wanda & Greg Batista - R.E.E. Realty, LLC Pinellas Park, FL: Wayne Holland - Home Vision Realty, Inc. Valrico, FL: Daniel Edwards - Twin Palms Realty, Inc. Tampa, FL: Ann Thompson & Associates South Holland, IL: Ann DaCosta - Avalar Real Estate & Mortgage Network Pittsburgh, PA - Ed Schmidt & Debbie Kyle - Team Pittsburgh Realty, (3 offices) Las Vegas, Nevada: Earl Crouse - Avalar Real Estate & Mortgage Network. Corporate Team: Avalar added two very significant franchise sales representatives, Peter Ortiz in the Northeast and Ed Salvato in the Pacific Northwest. Stephanie Dilles joined us to support our franchise operations, and Alexis Michaud joined the company as legal counsel. New Sales Tools: By continuing to improve its new agent development, business planning, office development guidelines and mentoring programs Avalar provided all of its franchisees with guidance on how to not only build their offices, but to train the salespeople to be more productive. The Avalar development programs address the needs of not only new licensees, but the needs of the more seasoned agents who want to take their business to the next level. These programs have received high marks from our affiliates. Mega Marketing: Avalar redesigned and launched its new website in November, www.avalar.biz. With a terrific new look and integral utility, the website will continue to grow and provide Avalar members with many more resources. On the near horizon is our intranet site for all our participating members. A great tool for referrals. Avalar has committed to double its marketing and promotion budget in 2005, building the Avalar name and the benefits to its independent broker owners and agents alike. Join us on the "Road to 100" offices: As we march to 100 offices nationwide this year, Avalar will be hosting many training programs, conferences and tradeshows, such as: Pittsburgh, PA- Kickoff and recruiting February 3 South Holland, IL-Kickoff and recruiting February 10 Austin, TX-Kickoff and recruiting conference March Florida State Realtors Convention at Wyndham Palace, Lake Buena Vista, FL August 25 26 Washington State Realtors ED Convention at the Meydenbauer Center, Bellevue, WA October 6 7 California State Realtors EXPO at San Diego Convention Center, San Diego, CA September 20 22 NAR EXPO at the Moscone Center, San Francisco October 28 31 In addition to our growth in the USA, Avalar will be adding offices in Canada in the 3rd and 4th quarter of 2005. We appreciate your support and wish you a tremendously successful year! Chuck Scoble, President

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