NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

BUSINES S General New England Realty Associates Limited Partnership ( NERA or the Partnership ), a Massachusetts Limited Partnership, was formed on August 12, 1977 as the successor to five real estate limited partnerships (collectively, the Colonial Partnerships ), which filed for protection under Chapter XII of the Federal Bankruptcy Act in September 1974. The bankruptcy proceedings were terminated in late 1984. In July 2004, the General Partner extended the termination date of the Partnership until 2057. The authorized capital of the Partnership is represented by three classes of partnership units ( Units ). There are two categories of limited partnership interests ( Class A Units and Class B Units ) and one category of general partnership interests (the General Partnership Units ). The Class A Units were initially issued to creditors and limited partners of the Colonial Partnerships and have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended (the Exchange Act ). Each Class A Unit is exchangeable for 30 publicly traded Depositary Receipts ( Depositary Receipts ), which are currently listed on the NYSE American and are registered under Section 12(b) of the Exchange Act. The Class B Units were issued to the original general partners of the Partnership. The General Partnership Units are held by the current general partner of the Partnership, NewReal, Inc. (the General Partner or NewReal ).