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1185 Avenue of the Americas
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New York, NY 10036
Tel: 212.921.1122
Fax: 212.921.2533
www.reis.com



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Reis, Inc. Announces First Quarter 2010 Results

Reis Services Records Consecutive Quarter Revenue Growth and Continued Renewal Rate Improvements

NEW YORK, May 6, 2010: Reis, Inc. (NASDAQ:REIS) ("Reis" or the "Company"), a leading provider of commercial real estate market information and analytical tools, announced its financial results and operational achievements for the first quarter ended March 31, 2010. Reis presents financial information for its two operating segments: the Reis Services segment, which is our primary business of providing commercial real estate market information and analytical tools for our customers; and the Residential Development Activities segment, which business we are in the process of exiting.

Results and Performance

Financial Results Summary

Consolidated revenue for the three months ended March 31, 2010 was $8,764,169 compared to $7,903,412 for the three months ended March 31, 2009. During the first quarter of 2010, revenue was comprised of subscription revenue (from the Reis Services segment) of $6,014,169 and revenue from sales of residential units of $2,750,000. During the 2009 first quarter, consolidated revenue was comprised of subscription revenue of $6,355,211 and revenue from sales of residential units of $1,548,201. The reported first quarter 2010 subscription revenue is the highest quarterly amount the Company has reported since the first quarter of 2009 and an improvement over the fourth quarter 2009, at which time subscription revenue was $5,826,285.

On a consolidated basis, the Company reported a net loss of $(177,070), or $(0.02) per basic and diluted share, for the three months ended March 31, 2010. For the three months ended March 31, 2009, the Company's consolidated net income was $276,598, or $0.03 per basic share and $0.02 per diluted share.

Management uses EBITDA (earnings before interest, taxes, depreciation and amortization) to monitor and assess Reis Services's performance and believes it is helpful to investors in understanding Reis Services's business (see Reconciliations of Net Income to EBITDA and Adjusted EBITDA below). Reis Services's EBITDA was $2,326,000 and the EBITDA margin was 38.7% during the first quarter of 2010. During the first quarter of 2009, EBITDA was $3,016,000 and the EBITDA margin was 47.5%. During the fourth quarter of 2009, EBITDA was $2,379,000 and the EBITDA margin was 40.8%.

Operational, Financial and Balance Sheet Highlights

Following are recent operational and financial highlights for Reis:

Lloyd Lynford, CEO of Reis, stated, "Our positive momentum over the last two quarters with respect to revenue is evidence of greater confidence among our subscribers and prospects, and of the "must-have" nature of our market information and analytics. We look forward to further progress in revenue growth, and a return to EBITDA expansion, as the economy recovers and we bring our new products and enhancements to market."

Reis Services EBITDA and Revenue

Reis Services revenue and EBITDA decreased by approximately $341,000 and $690,000, respectively, from the first quarter of 2009 to the first quarter of 2010. In general, the revenue and EBITDA decreases between the two periods are the result of (1) the cumulative impact of Reis Services's annual renewal rate declines during late 2008 and the first half of 2009 and (2) the net effect of price increases and decreases on renewal contracts executed in the first half of 2009. Reis's revenue model is based primarily on annual subscriptions that are paid in accordance with contractual billing terms. Reis recognizes revenue from its contracts on a ratable basis; for example, one-twelfth of the value of a one-year contract is recognized monthly. Therefore, increases in the dollar volume of new contracts will not translate immediately into equivalent increases in revenue. Similarly it took four quarters to realize the full impact of contract declines on revenue. EBITDA was additionally impacted by cost increases, primarily in sales and marketing expenses for increases in commissions in the first quarter of 2010 over 2009, as well as salary and benefit increases in 2010 from hiring for product development and enhancement initiatives and wage increases for existing employees.

The increase in revenue in the first quarter of 2010 over the fourth quarter of 2009 of $187,000 reflects (1) the improvements in the quarterly renewal rates to 92% overall and 93% for institutional customers, and (2) reduced budgeting restraints by current and prospective customers, both of which are discussed below, as well as (3) the strength of the fourth quarter 2009 contract signings, which was the Company's best quarter for contract signings overall and more specifically for new business since the fourth quarter of 2007, as the full quarterly effect of these contracts flowed into revenue in the first quarter of 2010. Revenue declines in late 2008 and the first three quarters of 2009 stabilized in the fourth quarter of 2009 and returned to revenue growth in the first quarter of 2010. The renewal rates and new business in the first quarter of 2010 should result in second quarter 2010 revenue that represents growth over both the first quarter of 2010 and the second quarter of 2009. The EBITDA decline of $53,000 relates to cost increases, in excess of revenue increases, primarily in sales and marketing expenses for increases in commissions in the first quarter of 2010 over the fourth quarter of 2009, as well as salary and benefit increases in 2010 from hiring for product development and enhancement initiatives and wage increases for existing employees.

Our overall renewal rates were 87% and 86% for the trailing twelve months ended March 31, 2010 and December 31, 2009, respectively, as compared to the overall renewal rate of 87% for the trailing twelve months ended March 31, 2009. The quarterly renewal rate was 86% overall and 88% for institutional customers in the first quarter of 2009, declined to 80% overall and 83% for institutional customers in the second quarter of 2009, and then consistently improved to 88% overall and 89% for institutional customers in the third quarter of 2009, 89% overall and 90% for institutional customers in the fourth quarter of 2009, and 92% overall and 93% for institutional customers in the first quarter of 2010. As noted above, there is a delay between these positive changes in renewal rates and contract signings and the recognition of revenue from those contracts in the statements of operations. The first quarter 2009 benefited from the positive sales activity and renewal rates experienced in 2008 prior to the market downturn.

The net effect of price increases and decreases on renewals negatively impacted revenue in 2009, with more limited residual effects being felt in the first quarter of 2010. Commencing in September 2008, contract price increases on renewals were constrained due to usage reductions at certain customers as well as budgetary pressures, predominantly among customers in the banking industry, which trend continued into the first half of 2009. Our pricing model is based on actual and projected usage; we believe it is generally not as susceptible to downturns and personnel reductions at our customers as a model based upon individual user licenses. We generally impose contractual restrictions limiting our immediate exposure to revenue reductions due to mergers and consolidations. However, we have been and we may in the future be impacted by consolidation among our customers and potential customers, or in the event that customers enter bankruptcy or otherwise go out of business. As budget restraints and economic pressure decrease, this positively impacts revenue growth, some of which occurred during the fourth quarter of 2009 and the first quarter of 2010.



EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, impairment losses on real estate assets and stock based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, senior management uses EBITDA and Adjusted EBITDA to measure operational and management performance. Management believes that EBITDA and Adjusted EBITDA are appropriate metrics that may be used by investors as supplemental financial measures to be considered in addition to the reported GAAP basis financial information to assist investors in evaluating and understanding the Company's business from year to year or period to period, as applicable. Further, these measures provide the reader with the ability to understand our operational performance while isolating non-cash charges, such as depreciation and amortization expenses, as well as other non-operating items, such as interest income, interest expense and income taxes and, in the case of Adjusted EBITDA, isolates non-cash charges for stock based compensation. Management also believes that disclosing EBITDA and Adjusted EBITDA will provide better comparability to other companies in Reis Services's type of business. However, investors should not consider these measures in isolation or as substitutes for net income (loss), operating income (loss), or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. Reconciliations of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, net income (loss), follow for each identified period:

Residential Development Activities

At March 31, 2010, the Company's residential development activities were comprised solely of The Orchards, a single family home development in East Lyme, Connecticut, upon which the Company could build 161 single family homes on 224 acres, which we refer to as East Lyme. Sales commenced in June 2006 and an aggregate of 39 homes and lots (28 homes and 11 lots) were sold as of March 31, 2010. At March 31, 2010, the remaining East Lyme inventory included one home (which was under contract at March 31, 2010), two improved lots and 119 fully approved lots. The Company is working with a broker to sell the two improved lots individually and to sell the 119 fully approved lots in a bulk sale transaction. There can be no assurance that the Company will be able to sell the remaining two improved lots individually or the 119 fully approved lots in bulk at acceptable prices, or within a specific time period, or at all.

The Company completed the sale of the remaining units at its Colorado project in September 2009 and sold its Claverack, New York project in February 2010.

Prior to its sale in February 2010, the Company owned approximately 235 acres in Claverack, New York, known as The Stewardship, which was subdivided into 48 developable single family home lots. The Claverack project was sold in a bulk transaction for a gross sales price of $2,750,000, which included two model homes, amenities, 46 additional lots and $450,000 of cash collateralizing certain road completion obligations. Net cash received at closing, after expenses, aggregated approximately $2,187,000. The remaining $450,000 of the purchase price will be payable by the purchaser in one year (or earlier if the road bond is released) and is secured by the outstanding road bond and a mortgage on the property. As a result of this sale, the Company recorded a gross profit of approximately $263,000 in the first quarter of 2010.

Investor Conference Call

The Company will host a conference call on Thursday, May 6, 2010, at 11:00 AM (EDT). This call is for the benefit of existing and prospective stockholders, stock analysts, and other interested parties to discuss the first quarter 2010 results and other matters. The Company has a policy of not providing quarterly or annual guidance.

The dial-in number from inside the U.S. or Canada for this teleconference is (877) 390-5537. The dial-in number for outside the U.S. and Canada is (760) 666-3763. A replay of the conference call will be available from shortly after the conference call through midnight (EDT) on May 20, 2010 by dialing (800) 642-1687 from inside the U.S. or Canada or (706) 645-9291 from outside the U.S. and Canada, and referring to the conference ID: 72660622. An audio webcast of the conference call will also be available on Reis's website at www.reis.com/events and will remain on the website for a period of time following the call.

About Reis

The Company's primary business is providing commercial real estate market information and analytical tools for its customers, through its Reis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail and industrial properties and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.

Reis's flagship product is Reis SE, which provides online access via a web browser to commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing evaluations. In addition to trend and forecast analysis at metropolitan and neighborhood levels, the product offers detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis SE is designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers and builders, banks and non-bank lenders, and equity investors, all of whom require access to information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

For more information regarding Reis's products and services, visit www.reis.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the Company's or management's outlook or expectations for earnings, revenues, expenses, asset quality, or other future financial or business performance, strategies, prospects or expectations, or the impact of legal, regulatory or supervisory matters on our business, operations or performance. Specifically, forward-looking statements may include:

Forward-looking statements reflect management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made certain assumptions. Future performance cannot be assured. Actual results may differ materially from those contemplated by the forward-looking statements. Some factors that could cause actual results to differ include:

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Press Contact:
Mark P. Cantaluppi
Vice President, Chief Financial Officer
Reis, Inc.
(212) 921-1122

Financial Information

The following financial information should be read in conjunction with Reis's consolidated financial statements and the notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations, both of which are included in Reis's quarterly report on Form 10-Q for the three months ended March 31, 2010, which was filed with the Securities and Exchange Commission on May 6, 2010.

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