Partnership Holdings

New England Realty Associates Limited Partnership ("NERA" or "the Partnership") and its 31 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 in the New England area. NERA has also made investments in other real estate partnerships and has participated in other real estate-related activities. To date, the partnership (and subsidiary partnerships) own 2,943 apartments and approximately 130,000 SF. of commercial space.

The General Partner ("General Partner") for NERA is NewReal, Inc., a corporation wholly owned by Jameson Brown, Harley Brown and Ronald Brown. Jameson 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 Jameson Brown and Harley 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. It has paid continuous and increasing dividends to the shareholders for 37 years.

Public Trading Market

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 (Computershare Trust Company, N.A. 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 Ronald Brown, Jameson Brown, Harley Brown and their affiliates. There are 1,301,700 Class A & B Units issued and outstanding.

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

Notice

Any shareholder may request a copy, free of charge, of our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, by sending a request in writing to: Director of Investor Relations, New England Realty Associates Limited Partnership, 39 Brighton Avenue, Allston, MA 02134, or by e-mail: NERA@thehamiltoncompany.com.