Brendan South of France Jean and Brendan Haleakala, Hawaii Gina Ironman France Gina and Chris Big Sur, California

Greetings and Happy Holidays 2002 Real Estate The year 2002 can be described as inconsistent. The first five months had shaken off the dot.com doldrums of 2001. The Dow and SP 500 remained stable and had brought a confidence back to the market place. It is clear that there are two market places, under and over 2 million dollars. The upper end market pricing has been cut in half and remains at 1997-1998 pricing levels. The under 2 million market had a great appetite through May. Then our friends at Enron and World Com helped the Dow slide thus taking all of the momentum away. We have slowly recovered, as of the last month the real estate market has been constant. The over supply of inventory is being purchased. Most of the volume is in $800,000-$1,200,000 price range. With the adjustment in list prices (down) and the cost of money (record low interest rates) the average buyer is back. Next Year 2003 More of the same, flat pricing, and good volume of activity for the two million and under buyer. The upper end has a long way to go. Brendan & Gina The partnership continues to grow and we again had 40+ transactions. We are working together well and it has added strength to the practice. Gina What a successful year. As a real estate agent her business knowledge, people skills and problem solving abilities are on top of the curve. Gina and her husband Chris are deep into the "first home remodel." Ironwoman Gina was second overall at Ironman France and first American at the World Championship in Hawaii in Kona this fall. Jean My goodness, what a busy woman. Jean and her business partner Don Ellis started Arvense, a horticultural consulting business that is successful and growing. They run the business out of the Santa Cruz barn. Jean, along with studying French and piano, running, managing two houses and her business, has also become quite a serious Olympic-style weight lifter. Brendan and Jean are enjoying all that life brings us and most of all each other. Brendan Brendan: Life continues as usual, it's the miles not years . Still trying to do it all. I have added triathlons to the bicycle racing. It has been a great addition: swimming especially. I also love Santa Cruz. I am a lucky man at home and work, in a word, "happy." Thank You All The repeat business and referrals confirm to us we are doing something right. Our goal is to be above and beyond, many thanks for the continued business. From Gina It has been a pleasure getting to know each client and I look forward to meeting more of you in the future. I am enjoying learning from Brendan, he is a great teacher, on the bike as well as real estate. I would also like to thank him for the support he gave me during my triathlon season, I couldn't have done it without him. Thank you to my circle of contacts (friends/swimmers, cyclists, runners, triathletes) that we have worked with in the past and thank you in advance for referring us in the future. Sincerely, Gina Kehr and R. Brendan Leary