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Tel: 212.921.1122
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www.reis.com



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Reis, Inc. Announces Third Quarter 2010 Results

Continued Improvements in Key Financial and Operating Metrics; Reis Services Quarterly Year-Over-Year Revenue Growth Accelerates

NEW YORK, November 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 third quarter ended September 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 September 30, 2010 was $6,173,122 compared to $6,699,633 for the three months ended September 30, 2009. During the third quarter of 2010, revenue was comprised of subscription revenue (from the Reis Services segment) of $6,013,122 and revenue from sales of residential units of $160,000. During the 2009 second quarter, consolidated revenue was comprised of subscription revenue of $5,801,078 and revenue from sales of residential units of $898,555.

For the nine months ended September 30, 2010 and 2009, consolidated revenue was $21,409,598 and $24,772,637, respectively. During the 2010 year to date period, revenue was comprised of subscription revenue (from the Reis Services segment) of $18,031,664 and revenue from sales of residential units of $3,377,934. During the 2009 period, consolidated revenue was comprised of subscription revenue of $18,065,398 and revenue from sales of residential units of $6,707,239.

On a consolidated basis, the Company had net income of $115,038, or $0.01 per basic and diluted share, for the three months ended September 30, 2010. For the three months ended September 30, 2009, the Company's net loss was $(162,535), or $(0.02) per basic and diluted share. The Company had net income of $44,365, or $0.00 per basic and diluted share, for the nine months ended September 30, 2010, whereas for the nine months ended September 30, 2009, the Company's net income was $645,615, or $0.06 per basic and diluted share.

Management uses EBITDA (earnings before interest, taxes, depreciation and amortization) to monitor and assess Reis Services's financial performance and believes it is helpful to investors in understanding Reis Services's business (see Reconciliations of Net Income (Loss) to EBITDA and Adjusted EBITDA below). Reis Services's EBITDA was $2,440,000 and the EBITDA margin was 40.6% during the third quarter of 2010. During the third quarter of 2009, EBITDA was $2,586,000 and the EBITDA margin was 44.6%. During the second quarter of 2010, EBITDA was $2,330,000 and the EBITDA margin was 38.8%. For the nine months ended September 30, 2010 and 2009, Reis Services's EBITDA was $7,096,000 and $8,342,000, respectively, with EBITDA margins of 39.4% and 46.2%, respectively.

Operational, Financial and Balance Sheet Highlights

Following are recent operational and financial highlights for Reis:

Reis's CEO, Lloyd Lynford, stated, "While a key headline for the quarter may be the acceleration of revenue growth over the same period one year ago, this financial accomplishment should be viewed within the context of the many new product initiatives that Reis launched during the third quarter and which we believe will help to generate top and bottom line growth over the foreseeable future."

Reis Services Revenue and EBITDA

Reis Services's revenue increased by approximately $212,000 from the third quarter of 2009 to the third quarter of 2010. This revenue increase over the corresponding prior quarterly period is the second consecutive quarterly increase in revenue over the prior year's quarter. The last time this occurred was in the third and fourth quarters of 2008. In addition, the year to date September 30, 2010 revenue decline of $34,000 as compared to the 2009 nine month period has narrowed throughout 2010. Revenue at the end of the first quarter of 2010 was less than the first quarter of 2009 revenue by $341,000, improved to a deficit of $246,000 for the six month comparison and further narrowed to the current $34,000 year to date decrease. In general, the improving revenue results in the 2010 period reflect (1) positive improvements in the overall renewal rates as the trailing twelve month renewal rate improved to 90% at September 30, 2010 as compared to 83% for the trailing twelve months ended September 30, 2009, (2) reduced budgeting constraints by current and prospective customers, which during 2008 and 2009 negatively impacted renewal rates and pricing on subscription contracts entered into at that time, as well as (3) the cumulative impact of the strength of contract signings in the fourth quarter of 2009 through the first nine months 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. Revenue for the second and third quarters of 2010 was consistent with the amounts reported in the first quarter of 2010.

Our renewal rates were 90% and 83% overall and were 92% and 85% for institutional customers for the trailing twelve months ended September 30, 2010 and 2009, respectively. These renewal rate improvements, coupled with contracts with new customers over the past 12 months, have allowed revenue to stabilize as older prior year contracts are rolling out of our revenue base and a higher percentage of expiring contracts are being renewed.

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 value of new contracts are spread evenly over the life of a contract, thereby moderating the immediate impact on revenue. It took over four quarters to realize the full impact of contract declines on revenue in late 2008 and into 2009, and it is also taking time for these older contracts to roll and be replaced by renewals with more favorable pricing. This trend can be seen in our 2010 quarterly revenue as each of the three quarters reported stable revenue at slightly over $6,000,000. Our contract 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.

EBITDA decreased $146,000 and $1,246,000 from the three and nine months ended September 30, 2009 to September 30, 2010 as a result of (1) cost increases, primarily in sales and marketing expenses for increases in commissions in 2010 over 2009, (2) salary and benefit increases in 2010 from hiring for product development and enhancement initiatives, (3) wage increases for existing employees, (4) a modest increase in the bad debt reserve in 2010, (5) increased marketing expenses related to our ReisReports offering and (6) the continuing increase in the cost of employee benefits, primarily for medical insurance. EBITDA for the third quarter of 2010 improved $110,000 on a sequential quarterly basis. This increase was the result of expense declines in the third quarter as compared to the second quarter of 2010, primarily from a lower bad debt expense in the third quarter.

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 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 (1) the performance of the Reis Services segment, the primary business of the Company and (2) the Company's consolidated results, 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 the information services sector. 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 September 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 ("East Lyme"). Sales commenced in June 2006 and an aggregate of 42 homes and lots (29 homes and 13 lots) were sold as of September 30, 2010. At September 30, 2010, the remaining East Lyme inventory included 119 fully approved lots. The Company sold two lots during the three months ended September 30, 2010 and sold two lots and one home during the nine months ended September 30, 2010 for gross sales proceeds of approximately $160,000 and $628,000, respectively, and sold three homes during the nine months ended September 30, 2009 for gross sales proceeds of approximately $1,742,000. No homes or lots were sold in the three months ended September 30, 2009. The Company is working with a broker to sell the 119 fully approved lots in one or more bulk sale transactions; however, there can be no assurance that the Company will be able to sell the remaining 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. The Company's real estate assets have been debt free since April 2009.

Investor Conference Call

The Company will host a conference call on Friday, November 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 third 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 22204650 or "Reis." A replay of the conference call will be available from shortly after the conference call through midnight (EST) on November 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: 22204650. 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 September 30, 2010, which was filed with the Securities and Exchange Commission on November 5, 2010.

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