GMAC Real Estate Signs New Franchise Agreements With 11 Real Estate Brokers.

Business Editors & Real Estate Writers

OAK BROOK, Ill.--(BUSINESS WIRE)--May 23, 2002

New Franchise Offering Enables Brokers to Choose Plan that Best Meets

Their Needs; Company on Record-Setting Pace

Thanks in large part to a completely revamped franchise offering and a strong commitment from its parent company to aggressively build its real estate operations, GMAC Real Estate, one of North America's leading real estate companies, today announced that it has signed franchise agreements with 11 real estate brokerage companies.

The 11 new agreements in 10 states put the company on pace to break its record for transaction fee revenues, according to John Bearden, president and CEO of GMAC Home Services, the parent company of GMAC Real Estate, GMAC Global Relocation Services and GHS Mortgage.

One of Bearden's first priorities upon taking the CEO position late last year was to create an entirely new franchise offering. The result: GMAC Real Estate is the only national franchisor to offer real estate brokers a choice of one of three flexible plans that best meets their business and market needs.

"Unlike other franchisors, GMAC Real Estate provides real estate brokers with a people-centric alternative," Bearden said. "We're not interested in providing brokers with a cookie-cutter, corporate-centric approach. We revamped our franchising offering and developed a new strategy because brokers enjoy being part of a national network, but they want the flexibility to choose a franchising strategy that meets their business needs. GMAC Real Estate is the only company to offer brokers three choices."

During the first quarter, GMAC Real Estate signed franchise agreements with the following companies:

-- Jacobson Group, Kenosha, Wis.

-- Twin Cities Homes, Burnsville, Minn.

-- James Andrews, St. Charles, Mo.

-- Ammons Pittman, Raleigh, N.C.

-- Platinum Properties, Las Vegas

-- Idaho Properties, Boise, Idaho

-- Northwest 1st Masters, Coeur d'Alene, Idaho

-- John Matthew Realtors, Devon, Pa.

-- M&Z Properties, Sterling Heights, Mich.

-- Properties Unlimited, (which is licensed as Koenig & Strey), Gurnee, Ill.

-- Barclay's Intl. Realty, Palm Beach, Fla.

"With the new franchise signings, we've re-entered major markets such as St. Louis, Raleigh, North Carolina and Las Vegas, and we've developed a multi-million dollar program to aggressively help these companies expand their businesses," Bearden said.

Earlier this month, GMAC Home Services announced it made an initial commitment of $100 million to help franchisees grow their businesses by acquiring other companies and opening new offices.

"As part of the GM family, we now have the backing of the second largest corporation in America," said Lou Vlahos, realtor and vice president of marketing for Twin City Homes GMAC Real Estate, a new franchisee from Minneapolis. "Our relationship with GM allows Twin City Homes to offer more services and more benefits than any other real estate firm in the United States," he said.

As part of its plan to continue growing its brand by adding new and converting franchisees, GMAC Real Estate recently bolstered its franchise sales force with the addition of three experienced real estate professionals.

Gregory Cook, a former regional vice president of franchise sales for Cendant Corp. has joined the company, as have Curtis Patterson, formerly regional vice president for Coldwell Banker, franchise sales and Robin Bramlette, former executive vice president of operations for e-commission.

About GMAC Real Estate

GMAC Real Estate is one of North America's largest real estate companies with more than 1,300 company-owned and franchised real estate offices and more than 20,000 sales associates. GMAC Real Estate is a subsidiary of GMAC Home Services, which also owns, GHS Mortgage, a leading lender, and GMAC Global Relocation Services, the world's third largest relocation firm.