Dutra Realty Enterprises Merges With Prudential California Realty; Combined Company Holds Premiere Market Position in East Bay.

IRVINE, Calif.--(BUSINESS WIRE)--May 11, 1999--

The Prudential Real Estate Affiliates Inc. (PREA) announced that Dutra Realty Enterprises, a prominent real estate brokerage firm in the East Bay for over 20 years, and Prudential California Realty, one of the leading real estate companies in Northern California, have jointly announced their decision to merge.

The merger, solidified on May 1, by top executives from both firms, creates the largest real estate organization in the East Bay, with combined annual sales of $4.85 billion, 19,000 annual transactions, 103 offices, and 2,900 sales associates throughout Northern California.

The company, which will officially begin operating as Prudential California Realty during the last week of May, 1999, will integrate management personnel from both organizations to create a dynamic leadership team lead by David Cobo as president and chief executive officer, Ed Krafchow as executive vice president, and Dominic Dutra as chief operating officer.

"We are proud to have a quality firm like Dutra Realty join the Prudential Real Estate Network under the Prudential California Realty brand," commented John Van Der Wall, president, The Prudential Real Estate Affiliates Inc. "The dynamic combined market presence of Prudential California Realty and Dutra Realty will offer Northern Californians an even stronger real estate provider that can service their home ownership needs under one trusted brand."

The decision to merge came after the leadership of both companies closely examined their operations. According to Cobo, the blending of management teams -- in particular top level executives such as former Dutra Realty Enterprises president, Dominic Dutra -- will significantly enhance the talents and skills the organization brings to both consumers and agents.

Each company has a solid commitment to technology and emerging business models that, when combined, will enable them to make remarkable strides in delivering innovative, more effective solutions both to consumers and to their sales associates. The more streamlined accessibility of ancillary services will be apparent to consumers who will be able to benefit from the time savings of one-stop shopping with mortgage, title, escrow and home warranty services all under one company.

Steve Murray, co-editor and publisher of REAL Trends, a leading industry publication, provided a national perspective on the announcement, saying, "Prudential California Realty and Dutra Realty have combined their core strengths and created a merged company that is poised for incredible growth. Together, they will undoubtably leverage their expertise to deliver cutting-edge service to their sales associates and their clients." Murray, who has been involved in more than 400 transactions in the past 10 years, added that "this is among the best fits I have ever seen -- in terms of people, locations and business vision."

The merger is just the latest in Prudential California Realty's continued growth throughout Northern California, which has also involved the addition of eight other office locations last year. Additionally, the company has added in-house mortgage, title, escrow and home warranty services that position the organization as a leader in full-service residential and commercial real estate.

"An evolving and more sophisticated marketplace has required companies to provide better, faster, more efficient service," stated Dominic Dutra. "As a result of this merger, we can augment Prudential California Realty's already impressive approach to providing full real estate services, as well as combine our assets in the technology arena. Additionally, agents from both organizations now have the opportunity to learn from each other, and take advantage of the many benefits the two entities bring to the table."

"These are two premier organizations joining forces to provide the best of everything to agents and clients, from resources, to internal support, to service," said Cobo. "We feel the merger of our two companies is a win-win for everyone."

Dutra Realty Enterprises, founded in 1972 by John Dutra, now a California State Assemblyman, is a one billion-dollar-a year real estate brokerage firm with offices throughout the East Bay and over 250 professional agents.

Prudential California Realty is Northern California's preeminent real estate organization founded in 1887 as Mason-McDuffie Real Estate and transitioning to the Prudential name in October of 1997. Prudential California Realty is an independently owned and operated member of the Prudential Real Estate Affiliates Inc. a full-service residential real estate franchise network with companies throughout the United States and Canada.

Prudential Real Estate Affiliates is a leading full-service real estate brokerage franchisor that awarded its first affiliation in 1988. The Prudential Real Estate Network comprises 39,000 sales associates and brokers in more than 1,500 independently owned and operated offices throughout the United States and Canada. The company is a technology leader, altering the traditional real estate transaction experience by delivering innovative solutions that meet the needs of today's brokers, sales associates and consumers.

The company launched its eCertified sales associate designation in 1998. This electronic certification gives home buyers and sellers access to qualified and technology savvy real estate experts who will assist them in exploring and utilizing various technology tools and resources to deliver the best, most complete set of information by which to make home ownership decisions.

Prudential Real Estate Affiliates, with headquarters in Irvine, Calif., is a subsidiary of The Prudential Insurance Company of America and the Network generated sales of $75.5 billion in 1998. Prudential Real Estate can be found on Prudential's Web site at http://www.prudential.com/realestate/.