Mr. John Friedrichsen reports

FIRSTSERVICE EXPANDS LEADING POSITIONS IN SOUTHERN CALIFORNIA AND SAN ANTONIO, TEXAS

FirstService Corp. has expanded its market-leading residential property management business in key California and Texas markets with the acquisitions of Euclid Management Company and Association Management Services, respectively. These transactions add more than 450 homeowner association properties and over 100,000 units to FirstService Residential's growing property management portfolio, which now totals approximately 7,000 properties comprising over 1.6 million residential units throughout North America. The two businesses generate annual revenues of approximately $15-million. Terms of the transactions were not disclosed.

Founded in 1986, Euclid is the premier third party provider of residential property management services in the Inland Empire and Santa Clarita regions of Southern California, with 234 properties and 38,000 units under management. Euclid's owner and president, Glennon Gray, will retain a significant equity interest in the business and will continue to lead day-to-day operations.

"Euclid is one of the highest-regarded property management firms in Southern California, and we are delighted to be welcoming the firm into the FirstService family. This acquisition is an exceptional fit with our existing operations in California, not only expanding our presence in the region, but further advancing our leadership position in California, the largest regional residential market in North America," said Chuck Fallon, chief executive officer of FirstService Residential. "We look forward to working with Glennon and his entire team to add value to their extremely high-quality roster of clients across the state of California."

FirstService also acquired Association Management Services, based in San Antonio, Tex., which was founded in 1992 and has since grown to become the largest residential property management firm in that market, managing over 220 properties composed of over 66,000 units.

Barbara Lowry, founder and a true industry leader, will continue to lead the company's day-to-day operations as president.

"AMS has long been considered the market leader in San Antonio and has been widely recognized as providing exceptional client service. We're excited about working with Barbara and her extremely capable management team in building on their excellent reputation in this new regional market for FirstService Residential, and enhancing the value proposition for their clients in San Antonio, while helping AMS continue to grow in south Texas," said Mr. Fallon.

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