National Relocation & Real Estate, March 2003

The ERA® network continued to exhibit growth that exceeded expectations during its 30th anniversary last year. Five new companies joined ERA Real Estate, adding total Gross Closed Income (GCI) that surpassed the total GCI of the Top 20 companies in 1995. One of our new affiliates, Hunt Real Estate ERA in Western New York, is the largest affiliation in ERA® franchise history.

Our company also celebrated its third decade by enhancing the organic growth of our system through mergers and acquisitions. In fact, mergers and acquisitions by ERA® companies more than doubled compared to the previous year. Among them are fine examples like ERA Rutherford and ERA The Masiello Group. The Springfield, Missouri-based ERA Rutherford successfully merged with neighboring Jones & Company Realtors to establish a company with a GCI of $4 million in the city. In New England, ERA The Masiello Group in Keene, New Hampshire has also benefited from mergers and acquisitions. Since 1990, the company has grown from one office in 1990 to 22 offices today.

Our anniversary year was also remarkable thanks to the gratifying pace of renewals. The decision-making process of John Veneziano, president of ERA Andrew Realty in Medford, Massachusetts offers some insight into the mindset of many of our longtime franchisees. When considering his decision to renew his affiliation, Veneziano told me that he asked himself two questions: "Is affiliation with the brand helping me stay competitive and does the brand do things for me that I can't do as an independent?"

I strongly believe that the answers ERA Real Estate provides to those questions were key to our continued growth last year. Successful in their own right, entrepreneurial leaders choose to become part of our growing ERA® family because they appreciate the role we play in supporting their entrepreneurial spirit. By choosing to join the ERA® brand, real estate professionals are able to offer services that are not available anywhere else.

One program that both new and long time associates are excited about is the ERA® Sellers Security® Plan. The program's popular slogan "We Will Sell Your House, or ERA Will Buy It!" ® generated even more buzz in 2002, when we increased the amount of program's equity advance and the maximum appraisal value by 50 percent. In part as a response to the growing mobility of the mature community, ERA Real Estate also lowered the age exception of another home purchase under the Sellers Security® Plan from over 60 to over 55.

Built on the intelligent use of technology 30 years ago, the ERA® system continues to attract and retain brokers through its technology products. Taking full advantage of the value of the Internet, we have enhanced ERA.com and expanded to our intranet site to better serve affiliates' informational and educational needs. With the addition of more consumer-oriented features and increased promotion, ERA.com has evidenced an impressive 56 percent increase in page views over the previous year.

Another source of our appeal is the unparalleled opportunity for networking that we offer our members at conferences. Our "Beyond Excellence" event, an annual meeting of top sales associates, in Bermuda last July had its highest attendance rate ever. We are also looking forward this month to our premier event, the annual ERA® International Business Conference. In addition to a schedule of world-class conference programs, President George H. Bush and former First Lady Barbara Bush will be our keynote speakers at the 2003 conference in San Diego, California.

How will ERA Real Estate sustain growth in 2003? Look for us to continue with what has proven to be a successful formula, with a few surprises. One thing that will continue to nourish our growth is the 'espirit de corps' at the heart of our business culture. I firmly believe that it is the engine that drives the commitment of the ERA® System and its 28,000 members worldwide to better serve our customers.