(1) Initial localization
In October 1999, CENTURY 21 China Real Estate officially acquired the brand management rights of CENTURY 21 Real Estate LLC, and set up headquarters in Beijing. March 2000 marked the official beginnings and by the end of 2000, it had developed three franchised regions, namely, Xiamen, Zhengzhou and Wenzhou, as well as the first group of franchised offices in Beijing. During this period, the Company completed the English to Chinese translations of the legal document system, training textbook system and IT system from American headquarters, and completed the preliminary localization of the various operations systems.

2) Strategic layout
Meanwhile, the Company, after studying the development situation of the Chinese real estate market, established three key development regions for the early stage, namely, North China, South China and East China, and formulated a strategic plan to enter Beijing, Guangzhou and Shanghai to bring the radiation effect of these central cities into full play. In 2000, the Company set up a region in Beijing; and successfully authorized the Guangzhou region and cooperated with Guangdong Pearl River Investment in 2001. In 2002, the Shanghai region was established together with Shanghai New Asia (Group) Co., Ltd. (current Jinjiang International Group), with 51% stake.

(3) Cultivation and consolidation of key skills
After 2001, the Company strengthened the development of its backoffice support capability, created the Sales Information System (SIS) specifically for the Chinese market, and finished the two upgrades of SIS internally. The training systems were perfected and across the nation 67 approved trainers delivered training programs to more than 10,000 persons accumulatively. A nationwide professional committee management mechanism (national market committee, national IT committee, etc.) was established to strengthen the integral decision-making capability of system operation; periodically organized to carry out nationwide experience sharing, interactive communication and cooperation activities, including regional operation exchange meetings and unit franchisee workshop, and nationwide experience summary and sharing mechanism within the system. In addition to this committee work, the Company has modified and perfected its legal document system several times based on its management and operation experiences from 700 franchisees in 22 regions. By the end of 2004, the Company had formed a complete authorization, support, management and profitability business model befitting the situation of the real estate market in China.
With the increasing prominence of the CENTURY 21® Brand and the ongoing perfection of the operating and supporting systems the growth of various regions has accelerated and their market share has increased rapidly. CENTURY 21 China Real Estate holds an absolute leading place in over 30% of our markets where it has already entered, including Ningbo, Zhengzhou, Xiamen and Hangzhou, and ranks in the top 3 of the markets that it has operated in for more than 6 months. Also CENTURY 21 China Real Estate has become one of the few brands to expand across the nation rapidly thereby giving us a competitive advantage.

(4) Implementation of derivative services
While developing the basic franchising businesses steadily, the Company has developed a business model to carry out finance and other derivative services through Beijing Kaisheng Jinglue Information Consulting co. ltd. The derivative services include housing financial services, mortgage, property evaluation, guaranty, settlement, title transfer, escrow and insurance agency services, through cooperation with banks, insurance companies and appraisal institutions.

(5) Introduction of strategic investors
Since 2005, the Company has entered phase two of its development strategy. At the beginning of 2005, the Company began to actively prepare to introduce strategic investors, implement a large-scale strategic expansion and further consolidate and perfect its core competitiveness in preparation for the next stage of the rapid development of China’s real estate brokerage industry. In December 2005, the most famous investment company in the world — Goldman Sachs concluded agreement to invest in CENTURY 21 China Real Estate. On October 22nd, 2007, CENTURY 21 China Real Estate announced that the company had completed a new round of financing--52 million U.S. Dollars. It isthought to be the largest sum of international private equity investment ever invested in a China real estate brokerage organization.