Company Profile and Campaign Strategies

Company InformationHeadquarters Address:

AvalonBay Communities, Inc.

2900 Eisenhower Avenue, Third Floor

Alexandria, VA 22314

Website: www.avalonbay.com

Summary of Business*

AvalonBay Communities, Inc. is a Maryland corporation

The 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 DirectorAnnual 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 Shares

Bryce Blair – 247,198 Shares

Thomas J. Sargeant – 136,010 Shares

Timothy J. Naughton – 108,063 Shares

Leo S. Horey – 61,354 Shares

* Yahoo Finance

Top 5 Institutional Shareholders* VANGUARD GROUP, INC. (THE) 7,144,039 Shares

MORGAN STANLEY 6,376,163 Shares

Barclays Global Investors UK Holdings Ltd 5,844,041 Shares

DEUTSCHE BANK AKTIENGESELLSCHAFT 4,680,272 Shares

STATE 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 4 759

Redevelopment Communities 9 2610

Total Current Communities 164 45728

* 10-K 12/31/08

Other Building Statistics* Rights to Develop 27 Communities

3 Established Buildings in NYC

Avalon Riverview

Avalon Bowery Place

Avalon Chrystie

1 Underdevelopment in NYC

Avalon 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 Properties

162,807 Units

Properties 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 Issue St. 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 - $65,300,000

Assessed Value as of 1/15/2008 - $29,385,000

Transitional Exemption Value as of 1/15/08 - $38,613,000

Exemption – State Lands & Bldgs, State Urban Dev. Corp

(New residential development exemption)

Taxable Value - $0

* NYC Finance

Campaign Strategies Suggest the Political Director press FHA and ADA lawsuits

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

elderly/disabled tenants.

Notify shareholders of lawsuit

Possible joint activities with Equal Rights Center (ERC) who brought original suit against 100 buildings

Consider joining ERC suit as friend-of-court.

Consider contacting City council members toward eliminating exemption

Consider 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 cathedral

Distribute flyers to church members

Publicize 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 Research Why did St. Johns leadership capitulate to AvalonBay?

Why hasn’t U.S. Attorney’s Office brought suits against other buildings.

Could lawsuits hamper future development

Investigate exemptions on other NYC buildings

Look into reasons for precipitous decline in share prices in recent years