Company Profile and Campaign Strategies

Company InformationHeadquarters Address:AvalonBay Communities, Inc.2900 Eisenhower Avenue, Third FloorAlexandria, VA 22314

Website: www.avalonbay.com

Summary of Business*AvalonBay Communities, Inc. is a Maryland

corporationThe company engages in the development,

redevelopment, acquisition, ownership and operation of multifamily communities in high barrier-to-entry markets of the United States.

Markets are located in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States.

Basic strategy is to obain ownership by developing communities on vacant land or by acquiring an existing community.

* 10-K 12/31/08

Company Properties*164 operating apartment communities containing

45,728 apartment homes in ten states and the District of Columbia.

14 communities under construction that are expected to contain an aggregate of 4,564 apartment homes when completed.

Company has the rights to develop an additional 27 communities that is expected to contain an estimated 7,304 apartment homes.

Total 1830 Employees

* 10-K 12/31/08

Three Year Financials*2006 2007 2008

Total Revenues $677,641,000.00

$766,663,000.00

$854,208,000.00

Total Expenses $549,100,000.00

$593,608,000.00

$745,137,000.00

Stock Prices:

• January 2007 - $128.75• January 2008 - $ 91.35• January 2009 - $ 59.66* Yahoo

Finance

Principal Company Officers*BRYCE BLAIR, CEO AND BOARD CHAIR

ANNUAL COMPENSATION - $1.81 MMr. Blair is Chairman of the Board and Chief Executive

Officer of AvalonBay Communities, Inc. Mr. Blair previously held the positions of Chief Operating Officer and Senior Vice President of Development, Acquisitions and Construction. He has overseen the development, construction, acquisition and management of over $10 billion of multifamily assets.

Timothy J. Naughton, President and Director Annual Compensation - $1.37 M

Prior to being named President, Mr. Naughton served as Chief Operating Officer (“COO”) for the company, where he was responsible for the performance and coordination of development, construction, acquisitions, dispositions, and property operations.

* 10-K 12/31/08

Top 5 Direct Shareholders*Gilbert M. Meyer – 1,199,245 SharesBryce Blair – 247,198 SharesThomas J. Sargeant – 136,010 SharesTimothy J. Naughton – 108,063 SharesLeo S. Horey – 61,354 Shares

* Yahoo Finance

Top 5 Institutional Shareholders*VANGUARD GROUP, INC. (THE)

7,144,039 SharesMORGAN STANLEY

6,376,163 SharesBarclays Global Investors UK Holdings Ltd

5,844,041 SharesDEUTSCHE BANK AKTIENGESELLSCHAFT

4,680,272 SharesSTATE STREET CORPORATION

4,146,684 Shares

* Yahoo Finance

Inventory of Communities*Current Communities # of Communities # of Apartments Established & Stabilized New England 33 8481 Metro NY/NJ 31 9353 Mid-Atlantic/Midwest 27 8565 Pacific Northwest 10 2378 Northern California 30 8477 Southern California 20 5,105

Subtotal 151 42359

Lease-Up Communities 4 759Redevelopment Communities 9 2610

Total Current Communities 164 45728

* 10-K 12/31/08

Other Building Statistics*Rights to Develop 27 Communities3 Established Buildings in NYC

Avalon RiverviewAvalon Bowery Place Avalon Chrystie

1 Underdevelopment in NYCAvalon Morningside Park

* 10-K 12/31/08

Key Competitor*Apartment Investment & Management Co.

2008 Financials Rental Revenues $1,350,950 Total Expenses $631,386

992 Properties162,807 UnitsProperties located in 44 states

* Yahoo Finance

Recent Litigation Issues*The Equal Rights Center sued for violations of

access requirements under the Fair Housing Act and the Americans with Disabilities Act in 2005 with respect to 100 properties.

U.S. Attorney’s Office filed a lawsuit in 2008 against Avalon Chrystie Place property with similar charges

* 10-K 12/31/08

Other IssueSt. Johns Divine community concerned with

proposed 20 story, 300 unit building dwarfing the historic cathedral.*

* NYT 4/4/06

Avalon Chrystie Place*Owner - Chrystie Venture Partners, LLC and,

AvalonBayCommunities, Inc.Market Value as of 1/15/2008 - $65,300,000Assessed Value as of 1/15/2008 - $29,385,000Transitional Exemption Value as of 1/15/08 -

$38,613,000Exemption – State Lands & Bldgs, State Urban Dev.

Corp (New residential development exemption)

Taxable Value - $0

* NYC Finance

Campaign StrategiesSuggest the Political Director press FHA and ADA

lawsuits in light of new development exemption of $38,613,000Distribute flyer to residents in 3 NYC buildings

particularly elderly/disabled tenants.Notify shareholders of lawsuitPossible joint activities with Equal Rights Center (ERC)

who brought original suit against 100 buildingsConsider joining ERC suit as friend-of-court.Consider contacting City council members toward

eliminating exemptionConsider working with disabled rights organizations in

picketing Chrystie Place property

Campaign Strategies (cont.)Publicize St. Johns Divine members concern

over 20 story new development adjacent to cathedralDistribute flyers to church membersPublicize statement by Jane Churchman - "We are

witnessing a triumph of corporate capitalism over this great cathedral, which had been set high upon a hill that it not be obscured by corporate and institutional towers." NYT 4/4/06

Inform investors of implications of lawsuits and declining share prices

Future ResearchWhy did St. Johns leadership capitulate to

AvalonBay?Why hasn’t U.S. Attorney’s Office brought

suits against other buildings.Could lawsuits hamper future developmentInvestigate exemptions on other NYC

buildingsLook into reasons for precipitous decline in

share prices in recent years