Reis, Inc. Announces Fourth Quarter and Annual 2012 Results

Reis, Inc. Announces Fourth Quarter and Annual 2012 Results

Firm Posts Record Contracts, Revenue and EBITDA

NEW YORK, March 7, 2013 (GLOBE NEWSWIRE) -- 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,
2012.

Consolidated revenue, which is comprised entirely of subscription revenue
generated at the Company's Reis Services segment, was $8,581,486 for the three
months ended December 31, 2012, as compared to $6,979,016 for the three months
ended December 31, 2011, an increase of 23.0%. For the year ended December 31,
2012, consolidated revenue was $31,228,644, as compared to $27,180,479 for the
year ended December 31, 2011, an increase of 14.9%. The 2012 annual revenue is
the third consecutive year of revenue growth and the fourth quarter growth is
the 11^th consecutive quarterly increase in revenue over the prior year's
corresponding quarter.

Income from continuing operations was $6,519,082, or $0.61 per basic share and
$0.58 diluted share, for the quarter ended December 31, 2012. For the quarter
ended December 31, 2011, the Company had income from continuing operations of
$4,372,260, or $0.41 per basic share and $0.40 per diluted share. For the year
ended December 31, 2012, income from continuing operations was $8,013,330, or
$0.75 per basic share and $0.73 per diluted share. Income from continuing
operations was $4,861,385 for the year ended December 31, 2011, or $0.46 per
basic share and $0.45 per diluted share.

Reis's CEO, Lloyd Lynford, stated, "Reis's 2012 annual revenue growth of 14.9%
and EBITDA growth of 17.8% signal strong results in any economic environment,
but were especially noteworthy last year when the performance of the national
economy and U.S. commercial real estate market was tentative. Our new product
initiatives and the quality of our market information and analytics continue
to accelerate the adoption of our flagship product Reis SE. An improving real
estate market and our investments and innovations position Reis to make
further impressive strides in revenue and EBITDA during 2013 and beyond."

On a consolidated basis, the Company had net income of $7,066,535, or $0.66
per basic share and $0.63 per diluted share, for the three months ended
December 31, 2012. For the three months ended December 31, 2011, the Company
had net income of $143,821, or $0.01 per basic and diluted share. For the year
ended December 31, 2012, the Company had a net loss of $(4,283,582), or
$(0.40) per basic share and $(0.39) per diluted share. The Company had net
income of $1,886,427 for the year ended December 31, 2011, or $0.18 per basic
share and $0.17 per diluted share. The consolidated net loss for the year
ended December 31, 2012 was negatively impacted by a net $12,296,912 loss from
discontinued operations resulting from the litigation related to the Company's
former Gold Peak condominium development project, offset by a net tax benefit
of $5,427,000, primarily from the reduction in the valuation allowance against
a portion of the Company's deferred tax assets; which tax benefit is also
reflected in income from continuing operations.

Reis Services EBITDA (earnings before interest, taxes, depreciation and
amortization) was $3,543,000 during the fourth quarter of 2012. EBITDA
increased $795,000, or 28.9%, over the fourth quarter 2011 amount of
$2,748,000. The EBITDA margins were 41.3% and 39.4% for the three months ended
December 31, 2012 and 2011, respectively. For the year ended December 31, 2012
and 2011, Reis Services EBITDA was $12,762,000 and $10,837,000, respectively,
representing growth of $1,925,000, or 17.8%. The EBITDA margins were 40.9% and
39.9% for the respective annual periods. Management uses other metrics, such
as EBITDA, to monitor and assess the performance of its operating business,
Reis Services, and believes it is helpful to investors in understanding the
Reis Services business (see Reconciliations of Income from Continuing
Operations to EBITDA and Adjusted EBITDA below for the Reis Services segment
and on a consolidated basis).

Operational and Financial Highlights

Following are recent operational and financial highlights for Reis:

  oRevenue growth of 23.0% in the fourth quarter of 2012 over the 2011 fourth
    quarter – the 11^th consecutive quarterly revenue increase over the prior
    year's corresponding quarter;
  oAnnual revenue growth of 14.9% in 2012 over 2011, an improvement on the
    12.3% revenue growth in 2011 over 2010;
  oRecord new business and total contract signings in 2012, with the highest
    level of new contract signings for any quarter and annual period in our
    history;
  oReis Services EBITDA growth of 28.9% and 17.8% in the fourth quarter and
    annual 2012 periods over the 2011 comparable periods;
  oReis Services EBITDA margins remaining in excess of 40%, while expanding
    our services and related employee head count in 2012;
  oExpanded growth in our Reis SE subscribers to 844 companies at December
    31, 2012, an increase of 118 customers during 2012, which includes 68
    banks that were not previously customers;
  oContinued investment in our business as we spent an aggregate of
    $3,807,000 in 2012 on our web sites and databases to further differentiate
    us from competitors;
  oEnded the year with $4,961,000 of cash, despite litigation settlement
    payments aggregating $17,000,000 and debt repayments of $5,691,000;
  oLaunched, in February 2013, Mobiuss® Portfolio CRE, a new, web-based
    credit risk, stress testing and portfolio surveillance platform, developed
    in conjunction with Opera Solutions, LLC. Mobiuss® Portfolio CRE will
    enable clients to quickly and thoroughly assess portfolio risks and
    opportunities by integrating Reis property, submarket and market data with
    Opera Solutions's rich analytics and client loan and property information;
    and
  oExpanded our self storage coverage in February 2013 with the inclusion of
    20 additional self storage markets, bringing our total coverage to 50
    markets in that property type.

Critical Metrics: Revenue; Deferred Revenue; Aggregate Revenue Under Contract;
and EBITDA

Reis Services's revenue increased by approximately $1,602,000, or 23.0%, from
the fourth quarter of 2011 to the fourth quarter of 2012 and $4,049,000, or
14.9%, for the year ended December 31, 2012 over the comparable 2011 annual
period. In addition, revenue increased by approximately $754,000, or 9.6%,
from the third quarter of 2012 to the fourth quarter of 2012. These revenue
increases reflect: (1) incremental new business as the 2012 fourth quarter and
year produced the highest level of new contract signings in the Company's
history (reflected in the growth in the number of Reis SE subscribers from 726
at December 31, 2011 to 844 subscribers at December 31, 2012); (2) revenue
growth from our data redistribution initiatives; (3) revenue growth from
ReisReports; (4) custom project revenue in 2012 in excess of 2011 amounts (as
more fully described below) and (5) the cumulative impact of the increased
volume of contract signings in 2011 and throughout 2012. The Company's overall
renewal rate for the trailing twelve months ended December 31, 2012 was 91%,
as compared to 93% for the corresponding period in 2011 (for institutional
subscribers, the renewal rates were 93% and 95% at December 31, 2012 and 2011,
respectively).

The revenue growth for the fourth quarter and annual 2012 periods reflected
incremental revenue from one specific custom project of $427,000 and $569,000,
respectively. Excluding this custom project from our reported revenue would
result, on a pro forma basis, in revenue growth of 16.8% in the fourth quarter
of 2012 and 12.8% for the 2012 annual period (in contrast with our reported
amounts of growth of 23.0% and 14.9%, respectively). We do not expect to have
custom work of this magnitude in the first quarter of 2013, and therefore, we
expect that revenue and EBITDA will decrease from the fourth quarter of 2012
to the first quarter of 2013. However, on a pro forma basis, excluding the
custom revenue referred to above, we expect revenue and EBITDA to grow in
those consecutive periods. We do not expect an interruption in revenue and
EBITDA growth in the first quarter of 2013 over the first quarter of 2012.

Two additional metrics management utilizes 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 remaining contract period. 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 remaining life of a contract. The following table reconciles deferred
revenue to Aggregate Revenue Under Contract at December 31, 2012 and 2011,
respectively:

                                        December 31,
                                        2012               2011
                                                          
Deferred revenue (GAAP basis)            $18,230,000       $15,707,000
Amounts under non-cancellable contracts
for which the Company does not yet have  18,179,000        10,871,000
the contractual right to bill at the
period end (A)
Aggregate Revenue Under Contract         $36,409,000       $26,578,000
                                                          
                                                          
(A) Amounts are billable subsequent to December 31 of each year and represent
(i) non-cancellable contracts for subscribers with multi-year subscriptions
where the future years are not yet billable, or (ii) subscribers with
non-cancellable annual subscriptions with interim billing terms.

Included in Aggregate Revenue Under Contract at December 31, 2012 was
approximately $23,947,000 related to amounts under contract for the forward
twelve month period through December 31, 2013.The remainder reflects amounts
under contract beyond December 31, 2013. The forward twelve month Aggregate
Revenue Under Contract amount is approximately 77% of revenue on a trailing
twelve month basis at December 31, 2012.For comparison purposes, at December
31, 2011 and 2010, the forward twelve month Aggregate Revenue Under Contract
of $20,064,000 and $19,527,000, respectively, and as a percentage of that
year's revenue was approximately 74% and 81%, respectively.

Both deferred revenue and Aggregate Revenue Under Contract are influenced by:
(1) the timing and dollar value of contracts signed and billed; (2) the
quantity and timing of contracts that are multi-year; and (3) the impact of
recording revenue ratably over the life of a multi-year contract, which
moderates the effect of price increases after the first year.Coupled with
record new business and contract signings in 2012, the Company signed more
multi-year contracts (in both number of contracts and gross dollar value) in
2012 than in any previous annual period. These factors resulted in the
increase in both deferred revenue and Aggregate Revenue Under Contract in
2012.

EBITDA for the three months ended December 31, 2012 was $3,543,000, an
increase of $795,000, or 28.9%, over the fourth quarter 2011 amount and
increased $1,925,000, or 17.8%, in the year ended December 31, 2012 over the
comparable 2011 annual period.On a consecutive quarter basis, EBITDA
increased $315,000 or 9.8% in the fourth quarter 2012 over the third quarter
2012.These EBITDA increases were driven by the revenue growth as described
above, offset by increasing employment related costs in 2012 over 2011, the
net effect of which improved our EBITDA margins over the prior year periods to
41.3% and 40.9% for the three and twelve months ended December 31, 2012,
respectively. EBITDA in the fourth quarter and annual 2012 periods was
similarly impacted from the aforementioned incremental custom work. Excluding
only that incremental custom revenue from our reported EBITDA, would result,
on a pro forma basis, in EBITDA growth of 13.4% in the fourth quarter of 2012
and 12.5% for the 2012 annual period (in contrast with our reported amounts of
growth of 28.9% and 17.8%, respectively).

Reconciliations of Income from Continuing Operations 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 continuing 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. EBITDA and Adjusted EBITDA are
presented both for the Reis Services business and on a consolidated basis. We
believe that these metrics, for Reis Services, provide the reader with
valuable information for evaluating the financial performance of the core Reis
Services business, excluding public company costs, and to make assessments
about the intrinsic value of that stand-alone business to a potential
acquirer. Management primarily monitors and measures its performance, and is
compensated, based on the results of the Reis Services business.EBITDA and
Adjusted EBITDA, on a consolidated basis, allow the reader to make assessments
about the current trading value of the Company's common stock, including
expenses related to operating as a public company. However, investors should
not consider these measures in isolation or as substitutes for net income
(loss), income from continuing operations, operating income, 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, income from
continuing operations, follow for each identified period on a segment basis
(including the Reis Services segment), as well as on a consolidated basis:

(amounts in thousands)                                     
                            By Segment                      
Reconciliation of Income
from Continuing Operations
to EBITDA and                Reis Services     Other (A)     Consolidated
Adjusted EBITDA for
theThree MonthsEnded
December 31, 2012
                                                          
Income from continuing                                     $6,519
operations
Income tax (benefit)                                       (5,427)
Income (loss) before income
taxes and discontinued       $2,337           $(1,245)     1,092
operations
Add back:                                                  
Depreciation and             1,182            2            1,184
amortization expense
Interest expense (income),   24               —            24
net
EBITDA                       3,543            (1,243)      2,300
Add back:                                                  
Stock based compensation     —                505          505
expense, net
Adjusted EBITDA              $ 3,543          $(738)       $2,805
Adjusted EBITDA margin –
Reis Services and            41.3%                         32.7%
consolidated (B)
                                                          
                                                          
                                                          
                                                           
                            By Segment                      
Reconciliation of Income
from Continuing Operations
to EBITDA and                Reis Services     Other (A)     Consolidated
Adjusted EBITDA for the Year
Ended December 31, 2012
                                                          
Income from continuing                                     $8,013
operations
Income tax (benefit)                                       (5,427)
Income (loss) before income
taxes and discontinued       $7,683           $(5,097)     2,586
operations
Add back:                                                  
Depreciation and             4,974            9            4,983
amortization expense
Interest expense (income),   105              (1)          104
net
EBITDA                       12,762           (5,089)      7,673
Add back:                                                  
Stock based compensation     —                2,295        2,295
expense, net
Adjusted EBITDA              $12,762          $(2,794)     $9,968
Adjusted EBITDA margin –
Reis Services and            40.9%                         31.9%
consolidated (B)
                                                           
                                                           
                            By Segment                      
Reconciliation of Income
from Continuing Operations
to EBITDA and                Reis Services     Other (A)     Consolidated
Adjusted EBITDA for the
Three Months Ended December
31, 2011
                                                          
Income from continuing                                     $4,372
operations
Income tax (benefit)                                       (4,075)
Income (loss) before income
taxes and discontinued       $1,370           $(1,073)     297
operations
Add back:                                                  
Depreciation and             1,334            2            1,336
amortization expense
Interest expense, net        44               —            44
EBITDA                       2,748            (1,071)      1,677
Add back:                                                  
Stock based compensation     —                537          537
expense, net
Adjusted EBITDA              $2,748           $(534)       $2,214
Adjusted EBITDA Margin –
Reis Services and            39.4%                         31.7%
consolidated (B)
                                                          
                                                          
                                                          
                            By Segment                                    
Reconciliation of Income
from Continuing Operations
to EBITDA and                Reis Services     Other (A)     Consolidated
Adjusted EBITDA for the Year
Ended December 31, 2011
                                                          
Income from continuing                                     $4,861
operations
Income tax (benefit)                                       (4,075)
Income (loss) before income
taxes and discontinued       $5,500           $(4,714)     786
operations
Add back:                                                  
Depreciation and             5,135            4            5,139
amortization expense
Interest expense (income),   202              (5)          197
net
EBITDA                       10,837           (4,715)      6,122
Add back:                                                  
Stock based compensation     —                2,204        2,204
expense, net
Adjusted EBITDA              $10,837          $(2,511)     $8,326
Adjusted EBITDA margin –
Reis Services and            39.9%                         30.6%
consolidated (B)
                                                          
                                                          
                                                          
                                                          
                            By Segment                      
Reconciliation of Income
from Continuing Operations
to EBITDA and                Reis Services     Other (A)     Consolidated
Adjusted EBITDA for the
Three Months Ended September
30, 2012
                                                          
Income from continuing                                     $860
operations
Income tax expense                                         —
Income (loss) before income
taxes and discontinued       $2,106           $(1,246)     860
operations
Add back:                                                  
Depreciation and             1,137            3            1,140
amortization expense
Interest expense (income),   (15)             —            (15)
net
EBITDA                       3,228            (1,243)      1,985
Add back:                                                  
Stock based compensation     —                598          598
expense, net
Adjusted EBITDA              $3,228           $(645)       $2,583
Adjusted EBITDA margin –
Reis Services and            41.2%                         33.0%
consolidated (B)
                                                          
                                                          
(A) Includes interest and other income, depreciation expense and general
and administrative expenses (including public company related costs) that
are not associated with the Reis Services segment.Since the reconciliations
start with income from continuing operations, the effects of the
discontinued operations (Residential Development Activities) are excluded
from these reconciliations for all periods presented.
(B) Reflects an adjusted EBITDA margin on the Reis Services segment and on
a consolidated basis, both of which exclude the impact of discontinued
operations.

Discontinued Operations

On June 20, 2012, Reis reached a settlement with the plaintiff homeowners'
association related to the litigation at the Company's former Gold Peak
condominium development project, providing for a total payment by Reis of
$17,000,000.Of this amount, $5,000,000 was paid on August 3, 2012 and the
remaining $12,000,000 was paid on October 15, 2012.As a result, the Company
reported a loss from discontinued operations of $12,297,000 for the year ended
December 31, 2012, primarily comprised of a net charge of $12,260,000 related
to the June 2012 settlement of $17,000,000, plus other professional fees and
expenses of $750,000, offset by $712,500 of recoveries in December 2012. The
2011 loss from discontinued operations of $2,975,000 included a charge of
$4,460,000 recorded at December 31, 2011 in connection with the construction
defect litigation at our Gold Peak development project.

Future cash flows from discontinued operations will be solely comprised of
expenditures incurred as part of our cash recovery efforts from insurance
companies and other potentially responsible parties and, to the extent that we
are successful in these efforts, cash inflows from any future recoveries;
however, there can be no assurance that the Company will recover any amounts
in the short or long term.

Income Taxes

The Company has aggregate Federal, state and local net operating loss (NOL)
carryforwards aggregating approximately $67,994,000 at December 31, 2012.

Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amount of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The net deferred tax
asset was approximately $9,622,000 and $4,008,000 at December 31, 2012 and
2011, respectively, of which $1,065,000 and $323,000 is reflected as a net
current asset and $8,557,000 and $3,685,000 is reflected as a net non-current
asset in the accompanying consolidated balance sheets at the respective dates.

During the year ended December 31, 2012, the net income tax benefit from
continuing operations of $5,427,000 includes the aggregate deferred Federal,
state and local income tax benefit of $5,614,000 as a result of the partial
release of the valuation allowance against certain deferred tax assets, offset
by current state and local tax expense of $187,000 arising from the Company's
current treatment of NOLs reflected on certain state and local tax returns.
The income tax benefit from continuing operations during the year ended
December 31, 2011 of $4,075,000 reflects an aggregate deferred Federal, state
and local income tax benefit as a result of the partial release of the
Company's valuation allowance against certain deferred tax assets.In the
fourth quarters of 2012 and 2011, the Company reduced the valuation allowance
recorded against a portion of its NOL carryforwards. The decision to reduce
the valuation allowance in each period was made after management determined,
based on an assessment of continuing operations, profitability and forecasts
of future taxable income, that these deferred tax assets would be realized.

Investor Conference Call

The Company will host a conference call on Wednesday, March 7, 2013, 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 2012 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 "Reis."A replay of the conference call will be
available from shortly after the conference call through midnight (EDT) on
March 21, 2013 by dialing (800) 585-8367 from inside the U.S. or Canada or
(404) 537-3406 from outside the U.S. and Canada, and referring to the
conference ID: 18027542.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

Reis'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,
warehouse/distribution, flex/research and development and self storage
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
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 asset and
portfolio evaluations. Depending on the product, users have access to market
trends and forecasts 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, equity investors and
service providers. 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

The Reis, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7042

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:

  *statements relating to future services and product development of the Reis
    Services segment;
    
  *statements relating to business prospects, potential acquisitions, uses of
    cash, revenue, expenses, income (loss), cash flows, valuation of assets
    and liabilities and other business metrics of the Company and its
    businesses, including EBITDA, Adjusted EBITDA and Aggregate Revenue Under
    Contract; and
    
  *statements preceded by, followed by or that include the words "estimate,"
    "plan," "project," "intend," "expect," "anticipate," "believe," "seek,"
    "target" or similar expressions relating to future periods.

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:

  *revenues and other performance measures such as income from continuing
    operations, EBITDA and Adjusted EBITDA may be lower than expected;
    
  *inability to retain and increase the Company's subscriber base;
    
  *inability to execute properly on new products and services, or failure of
    subscribers to accept these products and services;
    
  *competition;
    
  *inability to attract and retain sales and senior management personnel;
    
  *inability to access adequate capital to fund operations and investments in
    our business;
    
  *difficulties in protecting the security, confidentiality, integrity and
    reliability of the Company's data;
    
  *changes in accounting policies or practices;
    
  *legal and regulatory issues;
    
  *the results of pending, threatened or future litigation; and
    
  *the risk factors included in our annual report on Form 10-K for the year
    ended December 31, 2011 and our quarterly report on Form 10-Q for the
    quarter ended September 30, 2012, each filed with the Securities and
    Exchange Commission ("SEC"), including the "Risk Factors" section of each
    of these filings, and the Company's other filings with the SEC available
    at the SEC's website (www.sec.gov)

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.

Financial Information

REIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                                  
                                                  December 31,
                                                  2012          2011
                                                  (Unaudited)   
ASSETS                                                          
Current assets:                                                 
Cash and cash equivalents                          $4,960,850   $22,152,802
Restricted cash and investments                    216,125      215,405
Accounts receivable, net                           10,694,201   8,597,464
Prepaid and other assets                           1,438,829    625,451
Assets attributable to discontinued operations     —            3,000,000
Total current assets                               17,310,005   34,591,122
Furniture, fixtures and equipment, net of
accumulated depreciation of $1,828,199 and         738,490      863,309
$1,556,022, respectively
Intangible assets, net of accumulated amortization 16,332,596   17,155,195
of $24,067,250 and $19,437,856, respectively
Deferred tax asset, net                            8,557,420    3,685,420
Goodwill                                           54,824,648   54,824,648
Other assets                                       271,257      98,412
Total assets                                       $98,034,416  $111,218,106
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Current portion of debt                            $—           $5,690,940
Accrued expenses and other liabilities             3,902,206    3,352,445
Liability for option cancellations                 296,523      240,515
Deferred revenue                                   18,230,332   15,706,851
Liabilities attributable to discontinued           460,251      8,048,568
operations
Total current liabilities                          22,889,312   33,039,319
Other long-term liabilities                        588,484      668,456
Total liabilities                                  23,477,796   33,707,775
Commitments and contingencies                                   
Stockholders' equity:                                           
Common stock, $0.02par value per share,
101,000,000shares authorized, 10,782,643 and      215,652      211,417
10,570,891 shares issued and outstanding,
respectively
Additional paid in capital                         102,002,972  100,677,336
Retained earnings (deficit)                        (27,662,004) (23,378,422)
Total stockholders' equity                         74,556,620   77,510,331
Total liabilities and stockholders' equity         $98,034,416  $111,218,106




REIS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                  
                        For the Three Months Ended For the Years Ended
                        December 31,               December 31,
                        2012          2011         2012          2011
                                                              
                                                              
Subscription revenue     $8,581,486   $6,979,016  $31,228,644  $27,180,479
Cost of sales of         1,610,226    1,680,924   6,616,931    6,304,597
subscription revenue
Gross profit             6,971,260    5,298,092   24,611,713   20,875,882
Operating expenses:                                            
Sales and marketing      2,183,712    1,715,425   7,643,303    6,704,106
Product development      744,549      531,079     2,485,168    2,093,303
General and              2,927,658    2,710,826   11,793,441   11,095,425
administrative expenses
Total operating expenses 5,855,919    4,957,330   21,921,912   19,892,834
Other income (expenses):                                       
Interest and other       4,051        15,869      51,972       77,515
income
Interest expense         (27,310)     (59,371)    (155,443)    (274,178)
Total other income       (23,259)     (43,502)    (103,471)    (196,663)
(expenses)
Income before income
taxes and discontinued   1,092,082    297,260     2,586,330    786,385
operations
Income tax (benefit)     (5,427,000)  (4,075,000) (5,427,000)  (4,075,000)
Income from continuing   6,519,082    4,372,260   8,013,330    4,861,385
operations
Income (loss) from
discontinued operations,
net of income tax        547,453      (4,228,439) (12,296,912) (2,974,958)
expense of $—, $—, $—,
and $—, respectively
Net income (loss)        $7,066,535   $143,821    $(4,283,582) $1,886,427
                                                              
Per share amounts –                                            
basic:
Income from continuing   $0.61        $0.41       $0.75        $0.46
operations
Net income (loss)        $0.66        $0.01       $(0.40)      $0.18
                                                              
Per share amounts –                                            
diluted:
Income from continuing   $0.58        $0.40       $ 0.73       $0.45
operations
Net income (loss)        $0.63        $0.01       $(0.39)      $0.17
                                                              
Weighted average number
of common shares                                               
outstanding:
Basic                    10,728,120   10,562,438  10,685,333   10,569,805
Diluted                  11,233,410   10,979,467  11,034,082  10,876,876

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

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