By Karen Kage, Chief Executive Officer

It's wonderful to be entering into a new and exciting year with you as your real property data provider! We're looking forward to great things happening in 2005 and are pleased to share with you some of our achievements from 2004:

Realcomp Online^® Enhancements
These key enhancements were implemented on Realcomp Online^®:

• The ability to complete, print and/or e-mail Realcomp's listing profile and status change forms;
• The ability for each user to upload multiple (up to 5) property photos to each listing;
• The ability for each user to upload one (1) Virtual Tour to each listing;
• The ability for each user to upload their agent photo to the system;
• The ability for each Broker to upload their company logo to the system;
• Integration between Realcomp Online^® and the Home Preview Channel website for viewing/printing Home Preview Channel brochures;
• The ability to e-mail an agent when one of their prospects is a match for your listing through the Reverse Prospect function;
• The purging of prospect search criteria unused for more than six (6) months;
• An "External Research" section was added to allow users to easily reference outside web sites providing the following types of information: statewide plat maps, school profiles, community profiles, population estimates, & US Census facts for Michigan;
• The ability to add a 4-line customizable header to your reports and flyers - including your agent photo and company logo;
• The ability to use a listing from the History module as a subject property for CMA purposes;
• Duplicating the text-only Tour report from the Compass system;
• The ability to start any search from any search screen by pressing the "Enter" key;
• The ability for users to include "Seller Concessions" information; and
• The addition of an abbreviated listing history section to several reports (that does not print and is not included when listings are e-mailed).

Public Record Data
Last year, we also enhanced the Public Record Database on Realcomp Online^® by:

• Importing the Pace data that's available to us through our partnership with First American Real Estate Solutions (FAMRES) into the Realcomp Online^® database to augment it. This included some supplementary appraisal data for Wayne and Macomb Counties;
• Adding additional outlying counties to our public record database collection for your reference, including: Ingham, Lenawee, and Sanilac Counties. This has resulted in 16 different county public record databases being available to you for your research and verification purposes.

Training:
Realcomp continued to provide new and different MLS and technical training to Brokers and Agents by:

• Offering training on the new Listing Load-Data Entry module which is scheduled to be implemented on Realcomp Online^® on Tuesday, January 11, 2005;
• Offering transitional training for users moving from Compass to Realcomp Online^® in preparation for the Compass shutdown (which is scheduled for March 15, 2005);
• Providing our "Travel Training" program to bring Realcomp training to various areas, including: Auburn Hills, Clinton Township, Detroit/Dearborn, Southgate, Troy, & more;
• Updating our PowerPoint® Level I, Level II and Microsoft® Picture-It! Classes.

Agent/Office Communication
Realcomp continued to keep Brokers and Agents informed of MLS-related news by:

• Performing regular mailings to MLS Subscribers; including monthly (RealSolutions) newsletters and customized brochures on various topics;
• Sending weekly fax broadcast updates to offices and e-mail broadcast updates to individual agents;
• Visiting more than 400 offices at the request of the Brokers and/or Office Managers;
• Presenting Realcomp to new Agents during new member orientations at several of our Shareholder Board/Associations.

Customer Care and Data Entry
Last year, Realcomp's Customer Care Team entered over 75,000 listings, responded to more than 75,000 phone calls for assistance, and responded to approximately 4,000 e-mail requests for support.

New Phone System
We also installed a new phone system that now provides us with better reporting options. These options allow us to better serve MLS Subscribers calling in for support. The information available to us includes:

• Number of abandoned calls;
• Average wait times for customers calling into Customer Care;
• Average call times; and
• Number of Customer Care staffers available for incoming calls;

Additionally, we recognized a reduction in phone line costs with the implementation of this system.

Realcomp II Ltd. 2005 Officers
At the December, 2004 Board of Governors Meeting, the following Officer positions were elected and filled:

• President - Dick Knezek, Century 21 Curran & Christie
• Vice President - Douglas Hardy, Century 21 Today
• Treasurer - Dan Mulvihill, RE/MAX All Stars
• Secretary - Darralyn Bowers, Bowers & Associates

We congratulate our new Officers on their positions and look forward to working with them over the new year. In January, we also look forward to developing our Business Plan for 2005. Please let us know if there is anything you would like to see addressed in our plan for 2005. Your feedback is very important to us and critical to our success.

As always, I can be reached by e-mail or by phone at 248-699-9120.