REED BROS. REALTY

2009 COMPANY PROFILE

AND 2008 YEAR IN REVIEW

291 West Cascade Avenue, Sisters, Oregon 97759 – 541-549-6000

HISTORY OFTHE COMPANY

1

The History of Coldwell Banker

CORPORATE HISTORY:In 1906, Colbert Coldwell, a young real estate agent, observed families trying to piece their lives together following the San Francisco earthquake. Disapproving of agents who acquired their properties from vulnerable sellers and resold them at huge profits, and seeing a tremendous need for honest, knowledgeable real estate people, Colbert Coldwell founded his company with a revolutionary philosophy: the customer’s best interest above all. In 1914, Benjamin Arthur Banker joined Colbert Coldwell as a full partner. Together Coldwell and Banker forged a tradition of integrity, exceptional service and customer satisfaction that became our company’s trademark.

Today the Coldwell Banker brand has a global reach, with offices on six continents, 47 countries and territories. There are 3,965 offices around the world and over 126,000 sales associates. In 2007, Coldwell Banker Offices in Canada and the United States had a closed sales volume of $265 billion.

INDEPENDENT HISTORY:Coldwell Banker Reed Bros. Realty is celebrating their 35th anniversary in Sisters this year. In 1974 Bill Reed established the office under the name the General Land Office. It was located in a converted residence on Cascade Street across from The Gallery Restaurant. Bill’s brother Mike joined the company in 1976 and the name was changed to Reed’s General Land Office and was relocated to another converted residence next door to our existing location. Mike became a full partner in 1979 and the name was changed to Reed Bros. Realty. They quickly outgrew that location and built an office building on the corner of Cascade and Oak in 1982, where the office is located today. The company was expanded in 1992 when a branch office was opened after the company was selected to be the Exclusive On-Site Realtor at Black Butte Ranch. Bill and Mike joined the Coldwell Banker team in 1993 and the name was changed to Coldwell Banker Reed Bros. Realty.

The company is proud to have achieved the Coldwell Banker Premier Office designation in 1994 and has continued to earn that designation every year since. The company was awarded the Chairman’s Award of Honor in 1996, 1997 and 1998. Coldwell Banker Reed Bros. Realty was the # 3 Coldwell Banker office in the nation in 2005 and 2006, based on size and production.

COMPANY OFFICERS and OWNERS

Mike Reed……………………………....President / OwnerAshley, Ryan and Brittany Reed….…..Owners

2

MANAGEMENT

Mike Reed, CRB, CRS, ABR……….…Principal BrokerLori Ketchum……………………………Principal Broker

ADMINSTRATIVE STAFF

Lori Ketchum……………………………Admin Assistant/AccountingJoni McCreery………………………….Office Administrator/ReceptionistVicki Cudek……………………………..Weekend Receptionist

BROKERS / SALES AGENTS

Annie Andreson, BrokerSusan Bird, Broker, GRILinda Brooksby, Broker, GRI, ABRLinda Brunanchon, Broker, GRI, ABRCarole “CB” Davis, Broker, GRI, CRS, ABRJackie Herring, BrokerJeff Jones, Broker, GRILana Labuda, Broker, GRIJon McCumsey, BrokerMike Mansker, Broker, GRI, e-ProConnie Mitchell, Broker, GRISteve Post, BrokerRyan Reed, BrokerDoug Roberts, Broker, GRI, CRBForrest Smith, Broker

2008 CLOSED SALES PRODUCTION

TOP 10 COMPANIESSISTERS AREA TRANSACTIONS

Residential Sales

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OFFICE SIDES PRODUCTION # OF AGENTS

AGENT AVERAGE

1Coldwell Banker Reed Bros. Realty

58 $35,925,015 17 $2,113,236

2 Ponderosa Properties 60 $25,956,850 14 $1,854,061

3 Re/Max Town & Country 40 $14,291,300 21 $680,538

4 R.A. Dick Howells Co. 11 $7,192,000 3 $2,397,333

5 Hayden Enterprises Realty 21 $5,245,790 7 $749,399

6 Sotheby’s International Realty 3 $2,715,000 51 $53,235

7 Re/Max Equity Group* 4 $2,395,000 59 $40,593

8 Sisters Hometown Realty 6 $1,932,450 5 $386,490

9 Sunriver Realty – Bend* 3 $1,840,000 27 $68,148

10 A & A Realty 1 $1,800,00 4 $450,000

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on 1/14/09.

* Office closed December 2008

2008 CLOSED SALES PRODUCTION

TOP 10 COMPANIESSISTERS AREA TRANSACTIONS

All Property Types

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OFFICE SIDES PRODUCTION # OF AGENTS

AGENT AVERAGE

1Coldwell BankerReed Bros. Realty

77 $50,316,715 17 $2,959807

2 Ponderosa Properties 67 $27,694,850 14 $1,978,204

3 Re/Max Town $ Country 45 $16,253,498 21 $733,976

4 R.A. Dick Howells Co. 11 $7,192,000 3 $2,397,333

5 Hayden Enterprises Realty 21 $5,245,790 7 $749,399

6 Sotheby’s International Realty 4 $3,040,000 51 $59,608

7 Re/Max Equity Group Inc.* 4 $2,395,000 59 $40,593

8 Sisters Hometown Realty 6 $1,932,450 5 $368,000

9 Sunriver Realty – Bend* 3 $1,840,000 27 $68,148

10 A & A Realty 1 $1,800,000 4 $450,000

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on 1/14/09.

* Office closed December 2008

2008 CLOSED SALES VOLUME Residential Market Share

Sisters Area Transactions

5Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on1/14/09.

2008 CLOSED SALES VOLUME All Property Types - Market Share

Sisters Area Transactions

6Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on1/14/09.

Sisters Area Transactions 2007 / 2008

CLOSED SALES COMPARISONS

2007 2008

Volume $100,505,040 $59,533,695

Units 179 131

Average Sales Price $651,481 $454,456

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RESIDENTIAL SALES

2008 Percentage of Increase

Volume……………............. -40.8%

Units……………................. -26.8%

Average Sales Price……… -19.1%

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on 1/14/09.

CLOSED SALES COMPARISONS

2007 2008

Volume $71,492,527 $35,925,015

Units 117 58

Average Sales Price $611,047 $619,397

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RESIDENTIAL SALES – Sisters Area

2008 Percentage of Increase

Volume……………............. -49.7%

Units……………................. -50.4%

Average Sales Price………. +1.4%

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to 12/31/08 as reported on 1/14/09.

Coldwell Banker Reed Bros. Realty2007 / 2008

Sisters Area Transactions 2007 / 2008

CLOSED SALES COMPARISONS

2007 2008

Volume $118,083,357 $71,208,494

Units 221 153

Average Sales Price $534,314 $465,415

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ALL PROPERTY TYPES

2008 Percentage of Increase

Volume……………............. -39.7%

Units……………................. -30.8%

Average Sales Price……… -12.9%

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on 1/6/09.

CLOSED SALES COMPARISONS

2007 2008

Volume $85,382,844 $50,316,715

Units 148 77

Average Sales Price $576,911 $653,464

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ALL PROPERTY TYPES – SISTERS AREA

2008 Percentage of Increase

Volume……………............. -41.1%

Units……………................. -48.0%

Average Sales Price………+13.3%

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on1/6/09.

Coldwell Banker Reed Bros. Realty2007 / 2008

CLOSED VOLUME IN MILLIONS

TOP SIX COMPANIES January 1, 2008 through December 31, 2008

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$35.9m

$25.9m

$14.3m

$7.2m$5.2m $2.7m

SISTERS AREA TRANSACTIONS

Reed Bros. Realty

Ponderosa Properties

Re/Max Town & Country

R.A. Dick

HowellsHayden Homes Sotheby’s

ResidentialSales

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/2008 as reported on1/6/09.

CLOSED VOLUME IN MILLIONS

TOP SIX COMPANIES January 1, 2008 through December 31, 2008

12

$50.9m

$27.7m

$16.3m

$7.2m$5.2m $3.0m

SISTERS AREA TRANSACTIONS

Reed Bros. Realty

Ponderosa Properties

Re/Max Town & Country Hayden

R.A. Dick Howells

All PropertyTypes

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/2008 as reported on1/14/09.

Sotheby’s

Million Dollar + Sales MARKET SHARE January 1, 2008 through December 31, 2008

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16.7%

4.2% 4.2% 4.2%

SISTERS AREA TRANSACTIONS

Reed Bros. Realty

Ponderosa Properties Sotheby’s RMEGRTUM

All PropertyTypes

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/2008 as reported on1/14/09.

AAR

58.3%

8.3%

INTERNATIONAL OFFICES

COMLS MEMBER OFFICESProduction includes all areas and all property types

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OFFICE OFFICES AGENTS UNITS 2008 PRODUCTION

1 Coldwell Banker 8 154 990 $344,864,556

2 Sotheby’s International 2 56 184 $148,197,407

3 Re/Max 7 108 487 $142,157,924

Source: Central Oregon Multiple Listing Service for the Period 1/1/08 to12/31/08 as reported on 1/14/09.

•Source: www.coldwellbanker.com, ** Source: www.remax.com , *** Source: www.sotherbyrealty.com

WORLD WIDE OFFICESOFFICE ESTABLISHED COUNTRIES OFFICES AGENTS

1 Coldwell Banker * 1906 47 3,600 110,300

2 Re/Max** 1973 65 7,000 100,000

3 Sotheby’s International*** 1976 38 500 10,500

COMLS MEMBER OFFICES AS OF JAN. 14, 2009OFFICE OFFICES AGENTS

1 Coldwell Banker 6 139

2 Sotheby’s International 2 61

3 Re/Max 4 49