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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 Second Quarter 2010 Results

First Quarterly Revenue Increase Over Prior Year Since Fourth Quarter 2008

NEW YORK, August 5, 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 second quarter ended June 30, 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 June 30, 2010 was $6,472,307 compared to $10,169,592 for the three months ended June 30, 2009. During the second quarter of 2010, revenue was comprised of subscription revenue (from the Reis Services segment) of $6,004,373 and revenue from sales of residential units of $467,934. During the 2009 second quarter, consolidated revenue was comprised of subscription revenue of $5,909,109 and revenue from sales of residential units of $4,260,483.

For the six months ended June 30, 2010 and 2009, consolidated revenues were $15,236,476 and $18,073,004, respectively. During the 2010 year to date period, revenue was comprised of subscription revenue (from the Reis Services segment) of $12,018,542 and revenue from sales of residential units of $3,217,934. During the 2009 period, consolidated revenue was comprised of subscription revenue of $12,264,320 and revenue from sales of residential units of $5,808,684.

On a consolidated basis, the Company reported net income of $106,397, or $0.01 per basic and diluted share, for the three months ended June 30, 2010. For the three months ended June 30, 2009, the Company's consolidated net income was $531,552, or $0.05 per basic and diluted share. The Company reported a net loss of $(70,673), or $(0.01) per basic and diluted share, for the six months ended June 30, 2010. For the six months ended June 30, 2009, the Company's consolidated net income was $808,150, or $0.07 per basic and 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 $2,330,000 and the EBITDA margin was 38.8% during the second quarter of 2010. During the second quarter of 2009, EBITDA was $2,740,000 and the EBITDA margin was 46.4%. During the first quarter of 2010, EBITDA was $2,326,000 and the EBITDA margin was 38.7%. For the six months ended June 30, 2010 and 2009, Reis Services EBITDA was $4,656,000 and $5,756,000, respectively, with EBITDA margins of 38.7% and 46.9%, respectively.

Operational, Financial and Balance Sheet Highlights

Following are recent operational and financial highlights for Reis:

"Certainly the return of year-over-year revenue growth is one of the highlights of Reis's quarter," Reis's CEO, Lloyd Lynford observed. "That milestone occurred in the context of several other important achievements for the firm: the acceleration in the pace of our deleveraging, a recommitment of funds to our stock buyback program, and an unprecedented array of new product initiatives that have or will come to market shortly, further differentiating Reis's offering from those of the competition, while maintaining a Reis Services's EBITDA margin of just under 39%."

Reis Services EBITDA and Revenue

Reis Services revenue increased by approximately $95,000, from the second quarter of 2009 to the second quarter of 2010. This quarterly revenue increase over the prior year corresponding quarter is the first such increase since the fourth quarter of 2008 over the fourth quarter of 2007. In general, the increase in revenue over the 2009 second quarter is the effect of (1) positive improvements in the overall renewal rates as the trailing twelve month renewal rate improved to 88% at June 30, 2010 as compared to 84% for the trailing twelve months ended June 30, 2009, (2) reduced budgeting restraints by current and prospective customers, both of which are discussed below, as well as (3) the cumulative impact of the strength of contract signings in the fourth quarter of 2009 and in the first half of 2010. Revenue for the six months ended June 30, 2010 as compared to the 2009 corresponding six month period decreased $246,000. In general, this revenue decrease is the result of (1) the cumulative impact of Reis Services's annual renewal rate declines during late 2008 and through June 30, 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 in late 2008 and into 2009.

EBITDA decreased $410,000 and $1,100,000 from the three and six months ended June 30, 2009 to June 30, 2010 as a result of (1) as it relates to the six month period, the revenue decreases described above, (2) cost increases, primarily in sales and marketing expenses for increases in commissions in 2010 over 2009, (3) salary and benefit increases in 2010 from hiring for product development and enhancement initiatives, (4) wage increases for existing employees, (5) a modest increase in the bad debt reserve in the second quarter of 2010 and (6) the continuing increase in the cost of employee benefits, primarily for medical insurance.

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. Revenue and EBITDA for the second quarter of 2010 were consistent with the amounts reported in the first quarter of 2010. The second quarter 2010 revenue was negatively impacted by a reduction of $78,000 from custom work as compared to the first quarter of 2010. Although the decline in revenue from custom work was minor, it impacted our financial results in the following ways: (1) it negated the continuing modest revenue growth in our core subscription services in the second quarter of 2010, causing the second quarter of 2010 revenues to be essentially flat as compared to the first quarter of 2010 and (2) flattened EBITDA growth as compared to the first quarter 2010.

There is a delay between positive changes in renewal rates and contract signings and the recognition of revenue from those contracts in the statements of operations. Our renewal rates were 88% and 84% overall and were 90% and 86% for institutional customers for the trailing twelve months ended June 30, 2010 and 2009, respectively. The quarterly renewal rate was 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, 92% overall and 93% for institutional customers in the first quarter of 2010 and receded to 85% overall and 88% for institutional customers in the second quarter of 2010. The second quarter renewal rate was negatively impacted, in part, due to the timing of certain renewals.

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 and second quarters 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 (during existing contract terms) 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, there has been an overall positive impact on revenue stabilization and growth. These impacts can be seen in the reported results for the fourth quarter of 2009 and the first and second quarters of 2010.

Reconciliations of Net Income (Loss) to EBITDA and Adjusted EBITDA

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 June 30, 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 40 homes and lots (29 homes and 11 lots) were sold as of June 30, 2010. At June 30, 2010, the remaining East Lyme inventory included 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 one or more bulk sale transactions. 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 one or more bulk transactions 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 separately, sold its Claverack, New York project in February 2010 in a bulk transaction for a gross sales price of $2,750,000.

Investor Conference Call

The Company will host a conference call on Thursday, August 5, 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 second 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. The conference ID is 90974951 or "Reis." A replay of the conference call will be available from shortly after the conference call through midnight (EDT) on August 19, 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: 90974951. 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 June 30, 2010, which was filed with the Securities and Exchange Commission on August 5, 2010.

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