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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 Fourth Quarter and Annual 2010 Results

Reis Services Reports Revenue Growth Over 2009 and Third Quarter 2010

NEW YORK, March 11, 2011: 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 fourth quarter and year ended December 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 December 31, 2010 was $6,167,000 compared to $6,179,000 for the three months ended December 31, 2009. During the fourth quarter of 2010, revenue was comprised solely of subscription revenue from the Reis Services segment. During the fourth quarter of 2009, revenue was comprised of subscription revenue (from the Reis Services segment) of $5,827,000 and revenue from sales of residential units of $352,000.

For the years ended December 31, 2010 and 2009, consolidated revenue was $27,576,000 and $30,951,000, respectively. During 2010, revenue was comprised of subscription revenue (from the Reis Services segment) of $24,198,000 and revenue from sales of residential units of $3,378,000. During 2009, consolidated revenue was comprised of subscription revenue (from the Reis Services segment) of $23,892,000 and revenue from sales of residential units of $7,059,000.

On a consolidated basis, the Company had net income of $624,000, or $0.06 per basic and diluted share, for the three months ended December 31, 2010. For the three months ended December 31, 2009, the Company had net income of $358,000, or $0.03 per basic and diluted share. The Company had net income of $668,000, or $0.06 per basic and diluted share, for the year ended December 31, 2010. For the year ended December 31, 2009, the Company's consolidated net income was $1,004,000, or $0.09 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 for the Reis Services segment and on a consolidated basis).

Reis Services's EBITDA was $2,407,000 and the EBITDA margin was 39.0% during the fourth quarter of 2010. During the fourth quarter of 2009, Reis Services's EBITDA was $2,379,000 and the EBITDA margin was 40.8%. During the third quarter of 2010, Reis Services's EBITDA was $2,440,000 and the EBITDA margin was 40.6%. Reis Services's EBITDA was $9,503,000 and $10,721,000 for the years ended December 31, 2010 and 2009, respectively, with EBITDA margins of 39.3% and 44.9%, respectively.

Operational, Financial and Balance Sheet Highlights

Following are recent operational and financial highlights for Reis:

"The fourth quarter was especially gratifying-we signed the highest volume of contracts in Reis's history," says Reis's CEO, Lloyd Lynford. "Our deferred revenue is at an all time high. As these contracts flow into revenue, and with our competitive position enhanced by several recently launched products, we are looking forward to accelerating the strong growth we recorded during the fourth quarter into 2011 and beyond."

Consolidated Balance Sheet Information

At December 31, 2010, Reis had consolidated assets of approximately $106,688,000, including approximately $20,164,000 of cash and cash equivalents, approximately $32,396,000 of consolidated liabilities (primarily comprised of $11,222,000 of outstanding acquisition debt and $15,446,000 of deferred revenue) and consolidated stockholders' equity of approximately $74,292,000, or $7.09 per common share, based upon 10,472,010 shares outstanding. Officers and directors of Reis beneficially own approximately 27.7% of the common shares outstanding.

Reis Services Critical Metrics: Revenue, Deferred Revenue, Aggregate Revenue Under Contract and EBITDA

Reis Services's revenue increased by approximately $340,000 from the fourth quarter of 2009 to the fourth quarter of 2010. This revenue increase over the corresponding prior quarterly period is the third consecutive quarterly increase in revenue over the prior year's quarter. In addition, revenue increased by approximately $306,000 from the year ended December 31, 2009 to 2010. In general, the improving revenue results in the 2010 period reflect (1) positive improvements in overall renewal rates as the trailing twelve month renewal rate improved to 91% at December 31, 2010 as compared to 86% for the year ended December 31, 2009, (2) reduced budgeting constraints by current and prospective subscribers, 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 beginning in the fourth quarter of 2009 and continued throughout 2010.

Our overall trailing twelve month renewal rates improved from 86% to 91% and, for institutional subscribers, the renewal rates improved from 87% to 93% from December 31, 2009 to December 31, 2010, respectively. The fourth quarter and full year of 2010 were record periods for the Company for total contracts signed (based upon the value of annual contracts executed in those periods for both new and renewal business). The fourth quarter of 2010 also represented the best quarter for new business, based upon the value of annual contracts executed in that period, and the 2010 annual period was the second best annual period for new business (trailing only the 2007 annual period). The renewal rate improvements, coupled with new business from both existing and new subscribers, allowed revenue to stabilize in the first nine months of 2010 as older prior year contracts rolled out of the revenue base and a higher percentage of expiring contracts were renewed. The level of contract signings in 2010, and specifically in the fourth quarter of 2010, resulted in revenue growth in the fourth quarter of 2010 and is expected to translate into revenue growth in 2011 over 2010 amounts.

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 an 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. These older, lower value contracts will roll and be replaced by renewals with more favorable pricing over a similar time period. This trend is evidenced by our 2010 quarterly revenue, as each of the first three quarters reported stable revenue at slightly over $6,000,000, followed by growth in the fourth quarter of 2010 to $6,167,000 or an increase of $154,000, or 2.6%, over the third quarter 2010.

Our contract pricing model is based on actual and projected report consumption; we believe it is generally not as susceptible to economic downturns and personnel reductions at our subscribers 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 subscribers and potential subscribers, or in the event that subscribers enter bankruptcy or otherwise go out of business. As budget constraints and economic pressures moderate, there has been an overall positive impact on revenue stabilization and growth. These impacts can be seen in the reported results for 2010 in excess of 2009 revenue and the growth on a consecutive quarter basis from the third quarter to fourth quarter 2010.

Two additional metrics management believes are critical in understanding the business and future performance are deferred revenue and Aggregate Revenue Under Contract. Analyzing these amounts can provide additional insight into Reis Services's financial performance. Deferred revenue, which is a GAAP basis accounting concept and is reported by the Company on the consolidated balance sheet, represents revenue from annual or longer term contracts for which we have billed and/or received payments from our subscribers related to services we will be providing over the period and for which we have charged the subscribers. It does not include future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill; this aggregate number we refer to as Aggregate Revenue Under Contract. Deferred revenue will be recognized as revenue ratably over the life of a contract. The following table reconciles deferred revenue to Aggregate Revenue Under Contract at December 31, 2010 and 2009:

The increases in both the deferred revenue and Aggregate Revenue Under Contract are the result of an improved sale environment for renewals, increased new business and the signing of more multi-year contracts in 2010 over 2009 as described above in the revenue discussion.

EBITDA decreased $1,218,000 from the year ended December 31, 2009 to the year ended December 31, 2010. This is primarily 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) increased marketing expenses related to our ReisReports offering and (5) the continuing increase in the cost of employee benefits, primarily for medical insurance. EBITDA for the fourth quarter of 2010 modestly improved $28,000 over the fourth quarter of 2009, primarily from a revenue increase, in excess of cost increases. However, on a sequential quarter basis, EBITDA declined slightly, by $33,000, primarily from increased commissions on fourth quarter sales.

Management expects that EBITDA and EBITDA margins in 2011 will be negatively impacted in the short term by our continuing product development and enhancement initiatives, as well as marketing expenses for ReisReports. Although this spending is likely to reduce margins for the Reis Services segment into the mid-30% range, at least in the first half of 2011, the expectation is that this spending and investment will support additional revenue growth in the future.

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 December 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. An aggregate of 42 homes and lots (29 homes and 13 lots) were sold as of December 31, 2010. At December 31, 2010, the remaining East Lyme inventory included 119 lots. The Company is working with a broker to sell the remaining 119 lots in one or more bulk sale transactions. There can be no assurance that the Company will be able to sell the remaining 119 lots in one or more bulk transactions at acceptable prices, or within a specific time period, or at all. None of the Company's remaining real estate is encumbered by debt.

Investor Conference Call

The Company will host a conference call on Friday, March 11, 2011, at 11:00 AM (EST). This call is for the benefit of existing and prospective stockholders, stock analysts, and other interested parties to discuss the fourth quarter and annual 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 50073394 or "Reis". A replay of the conference call will be available from shortly after the conference call through midnight (EDT) on March 25, 2011 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: 50073394. 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 subscribers, 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, through its flagship institutional product, Reis SE, and through its new small business product, ReisReports, provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing evaluations. Depending on the product, users have access to trend and forecast analysis at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis's products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, and equity investors. These real estate professionals require access to timely 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 and www.reisreports.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 annual report on Form 10-K for the year ended December 31, 2010, which was filed with the Securities and Exchange Commission on March 11, 2011.


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