Earlier this week, Realogy, the parent company of Coldwell Banker Real Estate LLC, issued its financial and operating results for the second quarter of 2009. I am writing to briefly summarize the highlights for you.

As you well know, the current downturn in residential real estate began in August 2005. Although slightly improved, the business environment in the second quarter of 2009 was indicative of the challenges the real estate industry has endured over the past four years. Likewise, Realogy's second quarter results reflect the continued difficulties facing our industry and the economy.

Although macroeconomic pressures continue to weigh heavily on housing, signs of improvement are beginning to emerge - most notably the slowing rates of decline in U.S. home sales and national median sales price. While these factors do not necessarily signal the start of a housing recovery, we are nonetheless encouraged by these incremental improvements. They are the necessary first steps toward a housing recovery.

Realogy's financial results for the second quarter of 2009 were as follows:

• Revenue was approximately $1 billion, which was a decline of approximately $370 million from the second quarter of 2008. Between its variable cost business model and management's executed cost-saving initiatives, the Company mitigated all but $19 million of this revenue decline;


• Earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $185 million, which was a $24 million improvement from the second quarter of 2008;


• Despite a net loss of $15 million, Realogy generated positive cash from operations of $172 million, a year-over-year improvement of $246 million;


• Realogy finished the quarter with $356 million of readily available cash; and


• The Company remained in compliance with the debt covenant under its credit agreement with a senior secured leverage ratio of 5.1 to 1.