Partnership Holdings

New England Realty Associates Limited Partnership ("NERA" or "the Partnership") and its 23 Subsidiary Partnerships ("the Subsidiary Partnerships"), headquartered in Allston, Massachusetts, are engaged in the business of acquiring, developing, holding for investment, operating, and selling residential and commercial real estate. NERA has also made investments in other real estate partnerships and has participated in other real estate-related activities. To date, it owns 2,327 apartments and 85,075 SF. of commercial space.

The General Partner ("General Partner") for NERA is NewReal, Inc., a corporation wholly owned by Harold Brown and Ronald Brown. Harold Brown and Ronald Brown are officers and directors of the General Partner. The Partnerships' properties are managed by The Hamilton Company, Inc. ("The Hamilton Company"), which is wholly owned by Harold Brown.

Ownership Philosophy

The long-term goals of the Partnership are to manage, rent and improve its properties and, as suitable opportunities arise, to acquire additional properties with income and capital appreciation potential. When appropriate, the Partnership may sell or refinance selected properties with low debt-to-equity ratios. Proceeds from any such sales or refinancing will be reinvested in acquisitions of other properties, distributed to the partners, or used for operating expenses or reserves, as determined by the General Partner.

There are three classes of Partnership interests in NERA: Class A Partnership Units ("Class A Unit"), Class B Partnership Units ("Class B Units"), and General Partnership Units. In August 1987, NERA established a public trading market for the benefit of its Limited Partners and entered into a Deposit Agreement with The First National Bank of Boston as Depositary. (Boston EquiServe Limited Partnership or "Boston EquiServe" is now the Depositary.) Under this agreement, holders of Class A Units may exchange their Class A Units for Depositary Receipts ("Receipts"). The Class B Units and General Partnership Units are not publicly traded, and are 100% owned by the General Partners. There are 1,731,300 Class A, B and C Units outstanding.

The Receipts, each representing one-tenth of a Class A Unit, are listed on The American Stock Exchange (AMEX®) System under the symbol NEN. Receipts may be purchased and sold at any time through a personal securities broker. The Receipts, unlike the Class B and General Partnership Units, are freely transferable, except as restricted by the Partnership Agreement and the Deposit Agreement.