Our pricing model is based on actual and projected usage, and isgenerally not as susceptible to downturns as would be a model based uponindividual user licenses. We have been and we may be impacted by futureconsolidation among our customers and potential customers, or in the event thatcustomers enter bankruptcy or otherwise go out of business, as has occurredduring the latter part of 2008. Our largest customer accounted for 3.5% of Reis Services`s revenue for the threemonths ended March 31, 2009. Our 14 largest customers, each of which accountedfor greater than 1% of our revenue, aggregated 25.6% of Reis Services`s revenuefor the three months ended March 31, 2009. Despite the current dislocations in the financial markets, overall report usagegrew in the first quarter of 2009 over the fourth quarter of 2008 and wasconsistent with first quarter 2008 usage. Our overall trailing 12 month renewalrate through March 31, 2009 was 87%, with a higher rate among our institutionalcustomers at 88%. Lloyd Lynford, CEO of Reis, stated, “It is gratifying that, during a period ofunprecedented economic turmoil, Reis Services’s EBITDA remained virtuallyunchanged from the record level posted in the fourth quarter of 2008.

Thisresult illustrates that our market information and analytics remain essential toour customers. In addition, it is a testament to our ability to manage our costsin this challenging economic environment while continuing to focus on our corebusiness in order to position it for future growth when markets rebound.” Consolidated Balance Sheet InformationAt March 31, 2009, Reis had consolidated assets of approximately $116,939,000,including approximately $24,434,000 of cash and cash equivalents, approximately$43,263,000 of consolidated liabilities (including $10,791,000 of deferredrevenue) and consolidated stockholders` equity of approximately $73,677,000 or$6.82 per common share based upon 10,799,187 shares outstanding. Officers anddirectors of Reis beneficially own approximately 28.5% of the common sharesoutstanding. Operational and Financial HighlightsFollowing are recent operational and financial highlights for Reis:* In February 2009, launched Value AlertSM, an analytical tool that provides aquick measure of how previous commercial real estate value assumptions may needto be modified to reflect current economic realities.

The tool can be applied toa portfolio as an initial screen to identify assets that may warrant furtherscrutiny; * Reduced construction debt, all of which related to the East Lyme project by$900,000, from the December 31, 2008 balance of $5,077,000 to $4,177,000 atMarch 31, 2009. During April 2009, the remaining outstanding balance was retiredand Reis`s real estate is now debt free; * Reduced our liquidity requirement to $3,397,000 at March 31, 2009 andeliminated such requirement with the April 2009 retirement of the East Lymedebt; * Continued sales at our 259 unit Gold Peak project towards our goal of acomplete sell-out in mid 2009 with an aggregate of 245 sales closed at March 31,2009, including six sales in the quarter ended March 31, 2009; and * In December 2008, instituted a stock repurchase plan, to repurchase up to$1,500,000 of Reis stock. During the three months ended March 31, 2009, theCompany repurchased 215,523 shares at an average price of $2.80 per share.Through May 6, 2009, the Company had repurchased an aggregate of 237,823 sharesof common stock for approximately $692,000 at an average price of $2.91 pershare.Reconciliation of Net Income to EBITDA and Adjusted EBITDAEBITDA is defined as earnings before interest, taxes, depreciation andamortization. Adjusted EBITDA is defined as earnings before interest, taxes,depreciation, amortization, impairment losses on real estate assets and stockbased compensation.

Although EBITDA and Adjusted EBITDA are not measures ofperformance calculated in accordance with GAAP, senior management uses EBITDAand Adjusted EBITDA to measure operational and management performance.Management believes that EBITDA and Adjusted EBITDA are appropriate metrics thatmay be used by investors as supplemental financial measures to be considered inaddition to the reported GAAP basis financial information to assist investors inevaluating and understanding the Company`s business from year to year or periodto period, as applicable. Further, these measures provide the reader with theability to understand our operational performance while isolating non-cashcharges, such as depreciation and amortization expenses, as well as othernon-operating items, such as interest income, interest expense and income taxes,and in the case of Adjusted EBITDA, isolates non-cash charges for impairmentlosses on real estate assets and stock based compensation. Management alsobelieves that disclosing EBITDA and Adjusted EBITDA will provide bettercomparability to other companies in Reis Services`s type of business. However,investors should not consider these measures in isolation or as substitutes fornet income, operating income, or any other measure for determining operatingperformance that is calculated in accordance with GAAP. In addition, becauseEBITDA and Adjusted EBITDA are not calculated in accordance with GAAP, they maynot necessarily be comparable to similarly titled measures employed by othercompanies.

* The Orchards, a single family home development in East Lyme, Connecticut, uponwhich the Company could build 161 single family homes on 224 acres. Salescommenced in June 2006 and an aggregate of 33 homes and lots (25 homes and eightlots) were sold as of March 31, 2009. This call is for the benefit of existing and prospective stockholders,stock analysts, and other interested parties to discuss the first quarter 2009results and other matters. The Company has a policy of not providing quarterlyor annual guidance The U.S dial-in number for this teleconference is (800) 860-2442 Theinternational dial-in number is (412) 858-4600. A replay of the conference callwill be available from shortly after the conference call through 9:00 AM (EDT)on August 12, 2009 by using U.S. dial-in number (877) 344-7529 and entering thefollowing passcode: 430495# (international callers may use dial-in number (412)317-0088 and use the same passcode). An audio webcast of the conference callwill be available on Reis`s website at and will remain onthe website for a period of time following the call.