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All Cities Realty, Inc. Files Trademark Infringement Suits Against Re/Max and 1,700 Agents.

LOS ANGELES, October 3, 2006 -- All Cities Realty, Inc., a California real estate brokerage, and the owner of the federally registered trademark ALL CITIES REALTY, filed a federal legal action against the corporation CF Real Estate Loans, Inc. who now does business as Re/Max All Cities Realty.

The federal legal action is for alleged trademark infringement and other issues. This case will be litigated in Orange County, CA.

After filing the federal action, All Cities Realty, Inc. filed a separate second lawsuit in California state court against Re/Max’s associated agents and brokers for alleged violations of common law service mark infringement and statutory unfair competition as individual defendants.

In a hearing before California court today, Superior Court Judge Victor H. Person stayed a state legal action against 1700 Re/Max agents pending the decision in the federal court.

The action against the 1700 agents has not been dismissed, just paused until the Federal action is complete. The Judge in the State action has set a status conference for the end of April 2007. All Cities Realty indicates it will proceed to the State litigation as soon as the Federal action has been completed. The attorney for Re/Max made a statement to the California judge that if Re/Max is found guilty in federal court then all the agents are all guilty in State court. All Cities Realty’s attorneys warned that this statement would only apply to the 450 agents of the 1,700 who have agreed to allow Re/Max defend them.