Year to Year:

&= nbsp; &= nbsp; &nbs= p; NEWS= RELEASE

      = ;            &n= bsp;            = ;            &n= bsp; Since = 1997, the Premier Website for Vacation Rentals on

&nb= sp;            =             &nb= sp;            =             &nb= sp;            =     Cape Cod, Martha’s Vineyard, and Nantucket

&nb= sp;            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;    And now serving all of Florida

Strong demand but even larger supply in Cape &am= p; Islands rental market

FOR IMMEDIATE= RELEASE

Contact:        &= nbsp; Jeff Talmadge

Phone:        &= nbsp;    888-281-8660

E-mail:        &= nbsp;   jeff@weneedavacation.com

Website:         = www.weneedavacation.com

WELLESLEY – July 13, 2005

The first half of 2005 ends with both concerns a= nd optimism for the Cape & Islands rental market: Cape Cod, Nantucket and = Martha’s Vineyard.   Vacationer demand remains st= rong, but bookings are occurring later in the year than usual. The inventory of available homes h= as outstripped demand as baby boomers continue to flow into this potentially lucrative market, thus occupancy rates are lower than in past years. Home rental prices had held into J= une, but are starting to drop considerably as the homeowners worry over occupancy and procrastinating vacationers seek bargains.

This report contains = four sections:

Vacationer demand

Vacationer trends – what do they want= , when do they want it?

Vacation rental home supply and occupancy

Homeowner pricing

The information in th= is report derives from activity between January 1, 2005 and June 30, 2005 on WeNeedaVacation.com. WeNeedaVacation.com has more active vacation rental listings on the Cape & Islands than any other website. Our state-of-the-art relational da= tabase records every search done by vacationers, and every change made by homeowners. For other press releases, please see our p= ress area. For more information, please call Jeff Talmadge at 888-281-8660.<= o:p>

1. Vacationer Demand

Summary: As measured by views of our property listings, d= emand is up in 2005. In the past, we’ve attributed similar growth to our increased visibility, but beli= eve that the 2005 growth signifies other, more important factors. We have been very visible per sear= ch engines and links for several years, so we can’t improve on that given stable marketing approaches. = We have done nothing new for 2005. We’ve seen a 49% increase in traffic to our Cape Cod homes sin= ce 2004 and a 25% increase in our Island ho= mes, as measured by views of our listings. Much of this we attribute to increased use of the Internet to find vacation rentals. We also bel= ieve that vacationers have fewer worries about the economy, jobs, international strife than a year ago, and therefore are more active.

Methodology: Vacationer activity can be tracked in two ways. First, during this report period, 480,000 searches were done for Cape & Island homes. Each one may search for size, price, amenities, location and availability. Thus, the results draw from this search data. Secondly, we re= cord every “property view” or time that an individual vacation rental listing is viewed by a vacationer. There were 4,161,000 such property views. These views come from two sources:= (1) a search produces a list of suitable listings, and (2) pages on the site list= all homes in each town.

2. Vacationer Preferences<= /p>

Where are they looking?=

In the past few years= , we have seen a slight shift in demand from the Islands to the Cape. Higher prices on the Islands and ferry problems may contribute to this shift. But, as we already observe= d, interest overall remains strong, with a 49% increase in traffic to our Cape Cod homes since last year and a 25% increase in our Island homes, as measured by view= s of our listings.

Year

Cape Cod

Islands

2002

71%

29%

2003

73%

27%

2004

83%

17%

2005 ytd=

84%

16%

Table 1. Demand for Cape Cod vs. the Islands.

Drilling down further= , the interest is growing in the Outer Cape[1] most particularly.

Year

Up= per

C= ape

Mi= d

C= ape

Lo= wer

C= ape

Ou= ter

C= ape

Ma= rtha’s

Vi= neyard

N= antucket

2002

13

20

22

16

16

13

2003

14

23

20

15

15

12

2004

13

22

30

19

10

7

2005 ytd=

13%

23%

28%

19%

9%

7%

Table 2. Where they look, in more detail.

The most popular town= s in order are: Chatham, Orleans, Eastham, Brewster, Dennis and Wellfleet.

How much are they willing to spend= ?

Vacationers may state= the maximum price that they are willing to pay for a weekly vacation; note that this section addresses only weekly rentals for the summer of 2005. For a full analysis of prior years = and homeowner pricing this year, see our February press release. The table = below shows the price bands this year’s vacationers are willing to pay comp= ared with the past 3 years. There’s an ever so slight shift upwards on Cape Cod from 2004 to this year below $3,000; this means that 2% mo= re are willing to pay over $2,000 (29% vs. 27%) than last year. The high end is unchanged. On the Islands, this same shi= ft is more pronounced, which bodes well in general: the 0-1,999 range dropped 5%, which was spread among more expensive homes. This shift started last year w= hen demand for more expensive homes grew considerably. This tells us that fears of booming prices on the Islands are not as daunting as some report, but that there ju= st are not enough people willing to spend generally higher prices than Cape Co= d to keep the overall Island demand as strong= as it was three years ago.

Ye= ar

$0-999

$1,000-1,999

$2,000-2,999

$3,000-3,999

$4,000+

Cape Cod

2002

15%

37%

22%

14%

11%

2003

15%

45%

23%

10%

6%

2004

10%

42%

27%

12%

9%

2005

9%

41%

29%

13%

8%

The Islands

2002

17%

34%

22%

16%

11%

2003

14%

40%

25%

12%

9%

2004

9%

34%

28%

16%

13%

2005

7%

31%

31%

16%

15%

Table 3, Price preferences by year.

In 2005, as in most y= ears, interest flows from the most expensive homes to the less expensive ones as = the year unfolds. The more expens= ive ones, besides often being the most desirable, nearest beaches, etc. are also the largest, and larger homes book early.&= nbsp; Large parties have more individual’s vacations to coordinate, = and they start early – right after the December holidays, in fact. For example, searches for Cape Cod for $3,00= 0 or more constituted 30% of January’s interest, but in June, this number = had dropped to 16%. Given that January and June were essentially equally busy months on our site, this represents a very real drop in demand. Owners of m= ore expensive homes are wise to list during December to take advantage of the post-holiday rush; conversely, they are gambling if they wait until spring = when demand drops off. The flip si= de is that smaller homes’ demand peaks closest to the actual summer season.=

How large are the homes they want?=

As we saw in the prior section, demand for larger homes is greatest in the beginning of the rental season or right after the Christmas holidays. But before elaborating, let’s look at the year to year trends. Surprisingly, popularity of larger= homes has waned a bit since 2002, as seen in Table 4. We saw a surge in interest in larg= e homes in 2002 due to September 11^th as families sought the comfort of = each other, and the large family vacation boomed. Since then we are returning to a m= ore normal demand.

Year

1 = Br

2 = Br

3 = Br

4 = Br

5 = Br

6+= Br

2002

20%

24%

23%

16%

9%

8%

2003

26

33

24

11

4

3

2004

24

33

26

12

3

2

2005

23

33

26

12

4

2

Table 4. House size trends, yearly.

In 2005, as in years = past, the large homes are popular early, as shown in Table 5.

Month

1 = Br

2 = Br

3 = Br

4 = Br

5 = Br

6+= Br

Jan

14%

31%

29%

16%

6%

4%

Feb

20

29

28

15

5

3

Mar

20

31

29

15

4

2

Apr

24

34

26

12

4

1

May

28

36

24

8

2

1

Jun

30

28

23

8

1

1

Table 5. House size trends, monthly 2005.

How long do they want to stay?

Gone are the days of = the family spending the summer on Cape Cod, = at least in rental homes. Even the 2, 3 and 4 week vacation are a vanishing breed. As people’s live= s get busier and choices for destinations grow in an ever-shrinking world, the one week stay is now the staple of the Cape & Island vacation. Also, the demand for vacations of = less than one week are growing somewhat. Could people be eschewing the weekly vacation for less time? For the sake of the homeowners’ sanity, let’s hope not. Table 6 tells the full story. It s= hows one decimal point because the less than 1 week and 3 or 4 week columns̵= 7; shifts are subtle. There is no appreciable difference between Cape Cod and = the Islands, so they are not broken out.

Ye= ar

&l= t; 1 week

1 = week

2 = weeks

3 = or 4 weeks

20= 01

3.6%

86%

7%

2.7%

20= 02

4.0

85

8

2.5

20= 03

4.3

86

7

2.0

20= 04

7.4

84

8

1.1

20= 05

6.1

86

7

.9

Table 6. Length sought.

Those that do seek th= e longer vacations do so early in the rental season. 11% of January searches were fo= r 2 or more weeks, vs. only 4% of June’s.

When do they want to vacation?

The Cape & Island= s are one of the world’s great summer vacation spots, but they are open for business year-round. How much demand is there for varying parts of the year? Many of our homes are availa= ble for rent any time of year. All new construction would be for year-round hom= es. Many owners use the summer income to pay the bills and off-season for profit. As the inventory of h= omes grows, demand for off-season remains stable. Table 7 shows the big picture for demands for times of the year.

Year

Jan-May

June

July

August

Sept

Oct-Dec

2003

  &n= bsp; 4%

12%

37%

42%

4%

1%

2004

3

9

41

  &n= bsp; 38

6

3

2005

4

10

46

36

4

1

Table 7. Demand for times of year.

When do they conduct their search = for their vacation rental?

When are vacationers = looking? When we began WeNeedaVacation.com in 1998, the pattern was that January thr= ough March were the busiest months for vacationer traffic. This was true until t= he past few years.

Table 8 shows when vacationers have been seeking July and August vacations over the past 3 yea= rs. The first column is the time of the actual vacation. The “Previous Yr.” means searches for the following summer in the prior year. The o= ther columns are when vacationers actually were looking.

Vacation

Pr= evious Yr.

Ja= n

Fe= b

Ma= r

Ap= r

Ma= y

Ju= n

Ju= l

Au= g

July 03

8%

17%

13%

16%

17%

14

8

7

n/a

July 04

13

19

15

13

7

14

14

6

n/a

July 05

11

15

18

16

12

12

16

n/a

n/a

Aug 03

5

11

9

18

14

11

9

24

6

Aug 04

10

13

10

10

6

12

14

17

7

Aug 05

10

14

16

15

14

13

18

n/a

n/a

Table 8. When are vacationers looking?

The main illustration= is that vacationers are deferring their decisions later into the season to look for vacations. This is due to sev= eral important factors. 2003 &= 2004 were marked with a very uncertain spring internationally, not the least eve= nt of which was the Ira= q war. The economy has been rec= overing, but the middle class has been squeezed by continued loss of employment to overseas alternatives. <= /o:p>

Interestingly, the se= ason is not only showing signs of procrastination, but also of attenuation. Note the growth of demand in previous years. The Cape & Islands have become a year-round destination with year-round interest!

We expect the demand = for July through the end of the year to be strong, so those percentages for 2005 sho= uld grow as the year progresses. = Last year, July was extremely busy with last-minute planners for July and August= . 6% of overall demand for July 2004 came in July 04. An amazing 24% of demand for Augus= t 2004 came in either July or August 2004. This same pattern is holding for 2005, which is very good news for homeowners with open availability.

As to demand for Sept= ember, last year almost half of the demand for September (49%) came in July, August and even September itself. A = full 64% of demand for October was in July or beyond, so the fall off-season mon= ths are just starting to heat up in July. 2005 shows every sign of repeating 2004’s last-minute behavior= .

3. Vacation rental home supply and occupancy

The number of active = listings on our website has grown dramatically every year. Table 9 shows this growth using end of June numbers for the Cape & Islands. This growth comes for many reasons (growth of popularity of using the Internet to find vacation rentals, increase in inventory of homes available for rent, our increased visibility and marketing), but most notable is that this growth has outstri= pped demand for vacation rentals. = We have no hard evidence, but anecdotally, we observe that many of our new cli= ents have purchased homes recently. The boom in Cape & Island real estate pr= ices, aging baby-boomers, and the ease with which the Internet has enabled home buyers to rent their homes and save on commissions have all lead to a rush = into the market. Every new homeowner is one more home on the market and one less vacationer to fill other homes!

Ye= ar

Ac= tive listings

Ye= ar over year growth

20= 02

877

-

20= 03

1,478

601 / 68%

20= 04

2,113

655 / 43%

20= 05

2,775

= 445 / 20%

Table 9. WeNeedaVacation.com active listings

Looking at availability, Cape & Island booki= ngs are up 27% over last year at the same time, but the inventory of available weeks has grown 46%. This lea= ds to an excess of availability at this time of year. Table 10 breaks this down geographically. Each n= umber is the comparison with where we were at the end of June 2004. We are lookin= g at the full nine weeks of the summer. <= /span>June bookings were as strong as any prior month. July has started with strong bookings, supporting the notion that procrastinators are actively out there. “Total weeks” is the number of total weeks, booked or available= , at the start of the 2005 season.

Total weeks

Booked

Still available

= Upper = Cape

+ 34%

+ 16%

+ 74%

Mid Cape

46

27

92

= Lower = Cape

45

27

96

Outer Cape<= o:p>

60

40

133

Martha’s Vineyard

38

17

93

Nantucket

52

42

69

Table 10. Bookings versus 2004

4. Homeowner Rental Pricing

In any market where s= upply exceeds demand, prices tend to fall. For a look at the pricing at the beginning of the 2005 season versus prior years, please see our February press release, “2005 Pricing shows homeowner caution.”

In 2005, rental price= s held steady, dropping only 1% through May, or $21 from an average of $2,258. In June, the average dropped another $16.&nbs= p; But digging deeper, we see that 176 owners dropped prices in June. T= able 11 shows the detail.

Initial

Price

# homes

# homes

dropping

% homes

dropping

June $

Drop

June $

Drop %

Cape Cod

$2,088

1,212

143

12%

$129

6%

Nantucket

$3,814

78

9

12%

67

2%

Martha’s Vineyard

$2,672

204

24

12%

101

4%

Table 11. June price changes.<= /p>

More price cutting is expected in July, and in fact, is happening.

WeNeedaVacation.com is the pre= mier website for vacation rentals on Cape Cod, Martha’s Vineyard, and Nantucket, and all of Florida= . The website’s strength is its state-of-the-art, user-friendly advanced search, which allows vacationers to select homes based on preferred dates, location, price range, and size. Founded in 1997 by Jeff and Joan Talmadge, WeNeedaVacation.com now lists over 3,000 vacation homes, which were viewed more than four and one-h= alf million times in the first half of 2005. It is owned and operated by All Seasons Vacation Rentals, LLC of Wellesley, MA= .

Year	Cape Cod	Islands
2002	71%	29%
2003	73%	27%
2004	83%	17%
2005 ytd=	84%	16%

Year	Up= per C= ape	Mi= d C= ape	Lo= wer C= ape	Ou= ter C= ape	Ma= rtha’s Vi= neyard	N= antucket
2002	13	20	22	16	16	13
2003	14	23	20	15	15	12
2004	13	22	30	19	10	7
2005 ytd=	13%	23%	28%	19%	9%	7%

	Ye= ar	$0-999	$1,000-1,999	$2,000-2,999	$3,000-3,999	$4,000+
Cape Cod	2002	15%	37%	22%	14%	11%
	2003	15%	45%	23%	10%	6%
	2004	10%	42%	27%	12%	9%
	2005	9%	41%	29%	13%	8%
The Islands	2002	17%	34%	22%	16%	11%
	2003	14%	40%	25%	12%	9%
	2004	9%	34%	28%	16%	13%
	2005	7%	31%	31%	16%	15%

Year	1 = Br	2 = Br	3 = Br	4 = Br	5 = Br	6+= Br
2002	20%	24%	23%	16%	9%	8%
2003	26	33	24	11	4	3
2004	24	33	26	12	3	2
2005	23	33	26	12	4	2

Month	1 = Br	2 = Br	3 = Br	4 = Br	5 = Br	6+= Br
Jan	14%	31%	29%	16%	6%	4%
Feb	20	29	28	15	5	3
Mar	20	31	29	15	4	2
Apr	24	34	26	12	4	1
May	28	36	24	8	2	1
Jun	30	28	23	8	1	1

Ye= ar	&l= t; 1 week	1 = week	2 = weeks	3 = or 4 weeks
20= 01	3.6%	86%	7%	2.7%
20= 02	4.0	85	8	2.5
20= 03	4.3	86	7	2.0
20= 04	7.4	84	8	1.1
20= 05	6.1	86	7	.9

Year	Jan-May	June	July	August	Sept	Oct-Dec
2003	&n= bsp; 4%	12%	37%	42%	4%	1%
2004	3	9	41	&n= bsp; 38	6	3
2005	4	10	46	36	4	1

Vacation	Pr= evious Yr.	Ja= n	Fe= b	Ma= r	Ap= r	Ma= y	Ju= n	Ju= l	Au= g
July 03	8%	17%	13%	16%	17%	14	8	7	n/a
July 04	13	19	15	13	7	14	14	6	n/a
July 05	11	15	18	16	12	12	16	n/a	n/a
Aug 03	5	11	9	18	14	11	9	24	6
Aug 04	10	13	10	10	6	12	14	17	7
Aug 05	10	14	16	15	14	13	18	n/a	n/a

Ye= ar	Ac= tive listings	Ye= ar over year growth
20= 02	877	-
20= 03	1,478	601 / 68%
20= 04	2,113	655 / 43%
20= 05	2,775	= 445 / 20%

	Total weeks	Booked	Still available
= Upper = Cape	+ 34%	+ 16%	+ 74%
Mid Cape	46	27	92
= Lower = Cape	45	27	96
Outer Cape<= o:p>	60	40	133
Martha’s Vineyard	38	17	93
Nantucket	52	42	69

	Initial Price	# homes	# homes dropping	% homes dropping	June $ Drop	June $ Drop %
Cape Cod	$2,088	1,212	143	12%	$129	6%
Nantucket	$3,814	78	9	12%	67	2%
Martha’s Vineyard	$2,672	204	24	12%	101	4%