NEW YORK--(BUSINESS WIRE)--Reis, Inc. (NASDAQ: REIS) (“Reis” or the “Company”) announced its results for the quarter ended March 31, 2008. On May 30, 2007, Reis, Inc., a privately held real estate information company (“Private Reis”), merged (the “Merger”) with a wholly owned subsidiary of Wellsford Real Properties, Inc. (“Wellsford”). The combined entity has adopted the corporate name of “Reis, Inc.” to reflect the fact that the post-merger business is predominantly commercial real estate market information and analytics.

Results and Performance

Reis presents financial information for its two operating segments: the information business, which we refer to as Reis Services, and Residential Development Activities, the primary business previously conducted by Wellsford. The Company believes that the utilization of segment reporting will assist investors in analyzing the two separate businesses. For comparison purposes, the Company has included pro forma financial information for the three months ended March 31, 2007, which is presented as if the Merger had been consummated, the proceeds from Merger related financing had been received and the plan of liquidation had been terminated as of January 1, 2006.

Consolidated Financial Results

For the three months ended March 31, 2008, the Company’s consolidated net income was $447,882, as compared to a consolidated pro forma net loss of ($2,276,023) for the three months ended March 31, 2007. Total revenues for the three months ended March 31, 2008 and 2007 were $14,794,929 (actual) and $13,569,424 (pro forma), respectively. During the 2008 period, revenue was comprised of subscription revenue of $6,411,104 and revenue from sales of residential units of $8,383,825. During the 2007 pro forma period, revenue was comprised of subscription revenue of $5,437,899 and revenue from sales of residential units of $8,131,525. These amounts represent a 17.9% increase in subscription revenue and a 3.1% increase in revenue from sales of residential units from the 2007 pro forma period to the 2008 period.

Reis Services EBITDA

Management uses EBITDA to monitor and assess Reis Services’s performance and believes it is helpful to investors in understanding Reis Services’s business (see Reconciliation of Net Income to EBITDA below). For the three months ended March 31, 2008, EBITDA for the Reis Services segment was approximately $2,692,000, representing a 42.0% EBITDA margin and 55.0% EBITDA growth rate over pro forma EBITDA of approximately $1,737,000 for the corresponding pro forma period in 2007.

Consolidated Balance Sheet Information

At March 31, 2008, Reis had consolidated assets of $137,714,595, including $25,601,320 of cash and cash equivalents, $57,156,150 of consolidated liabilities, and consolidated stockholders’ equity of $80,558,445 or $7.33 per common share based upon 10,984,517 shares outstanding. Officers and directors of Reis beneficially own approximately 24.8% of the common shares outstanding.

Wellsford’s primary operating activities immediately prior to the merger were the development, construction and sale of three residential projects and its approximate 23% ownership interest in Private Reis. At March 31, 2008, the Company’s equity in its remaining real estate assets was approximately $12,494,000 (or 15.5% of consolidated stockholders’ equity).

Basis of Accounting

The previously announced plan of liquidation of the Company was terminated as a result of the Merger and the Company returned to the going concern basis of accounting from the liquidation basis of accounting. For accounting purposes, the Merger was deemed to have occurred at the close of business on May 31, 2007 and the statements of operations include the operations of Reis Services effective June 1, 2007.

Reconciliation of Net Income to EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA is not a measure of performance calculated in accordance with GAAP, senior management uses EBITDA to measure operational and management performance. Management believes that EBITDA is an appropriate metric that may be used by investors as a supplemental financial measure 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, EBITDA provides the reader with the ability to understand our operational performance while isolating non-cash charges, such as depreciation and amortization expenses and stock based compensation, as well as other non-operating items, such as interest income, interest expense and income taxes. Management also believes that disclosing EBITDA will provide better comparability to other companies in Reis Services’s type of business. However, investors should not consider this measure in isolation or as a substitute for net income, operating income, or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. Reconciliations of EBITDA to the most comparable GAAP financial measure, net income, follows for each identified period:

(amounts in thousands)		Reis Services			Residential Development Activities and Other*				Consolidated
Reconciliation of Net Income to EBITDA for the Three Months Ended March 31, 2008
Net income									$	448
Income tax										400
Income (loss) before income taxes		$	1,249		$	(401	)			848
Add back:
Depreciation and amortization expense			1,066			65				1,131
Interest expense (income), net			377			(215	)			162
Stock based compensation benefit, net			—			(31	)			(31	)
EBITDA		$	2,692		$	(582	)		$	2,110

Reconciliation of Pro Forma Net Income to Pro Forma EBITDA for the Three Months Ended March 31, 2007		Reis Services				Residential Development Activities and Other*				Consolidated
Pro forma net (loss)										$	(2,276	)
Income tax expense											42
Loss before income taxes		$	(45	)		$	(2,189	)			(2,234	)
Add back:
Depreciation and amortization expense			1,165				64				1,229
Interest expense (income), net			617				(276	)			341
Stock based compensation benefit, net			—				185				185
Pro Forma EBITDA		$	1,737			$	(2,216	)		$	(479	)

		Reis Services			Residential Development Activities and Other*				Consolidated
Reconciliation of Net Income to EBITDA for the Three Months Ended December 31, 2007
Net (loss)									$	(2,441	)
Income tax (benefit)										(1,075	)
Income (loss) before income taxes		$	1,098		$	(4,614	)			(3,516	)
Add back:
Depreciation and amortization expense			1,024			64				1,088
Impairment loss on real estate assets under development			—			3,149				3,149
Interest expense (income), net			453			(354	)			99
Stock based compensation benefit, net			—			297				297
EBITDA		$	2,575		$	(1,458	)		$	1,117
_____________
* Includes Gold Peak, East Lyme, the Company’s other developments and corporate level income and expenses.

Reis Services’s EBITDA in the first quarter of 2008 grew 4.5% over the fourth quarter of 2007 and grew 55.0% over the first quarter of 2007.

Revenue was stable from the fourth quarter of 2007 to the first quarter of 2008. Reis Services is able to grow revenue through new business as well as price increases in connection with renewals. Reis Services has historically experienced higher revenue during the second half of any calendar year because a greater number of our contracts have renewed, coupled with price increases, in the second half of each year. This results from several historical operating facts:

• First, Reis SE was launched in June 2001 and, as a result, our initial contracts were bunched in the end of that year.
• Second, historically, Private Reis’s fiscal year ended on October 31 of each year, and many contracts were executed and/or renewed shortly before the end of that fiscal year.
• Third, many of our customers prefer to sign contracts in the fourth calendar quarter in conjunction with spending remaining funds for the current year’s budget or determining allocations with respect to future budgets.
• Fourth, we are a subscription-based business, where the majority of our contracts are for an annual or multi-year period. We recognize subscription revenue on a straight line basis over the life of the relevant contract. Therefore, any increase in revenue related to a contract renewal would only occur in the period in which the renewal occurs. Following that quarterly period, there would be no consecutive quarter-over-quarter revenue growth until the period in which the next renewal, coupled with a price increase, occurs.

Accordingly, meaningful revenue growth occurs in heavy renewal periods in conjunction with any price increases. Also, other factors may impact consecutive quarter-over-quarter growth, including the introduction of new products and non-recurring consulting or valuation work. These items, however, did not have a material impact in evaluating revenues for the fourth quarter of 2007 and the first quarter of 2008.

Reis Services

As of March 31, 2008, Reis had over 730 companies under signed contracts. Generally, each company has multiple users entitled to access Reis SE, the flagship product of Reis Services. These numbers do not include users who pay for individual reports by credit card.

Lloyd Lynford, President and CEO of Reis, stated that “Reis Services’s strong first quarter financial results demonstrate the “must-have” nature of the commercial real estate market information and analytics that Reis provides to its subscribers. In a marketplace characterized by uncertainty of values and difficulty in obtaining financing, real estate investors and lenders are highly motivated to assess individual property and portfolio performance. Reis’s comprehensive geographic and property-type coverage and its analytical tools empower investors to update asset cash flows, refine valuations and conduct the fundamental market research that will guide investment strategies in the coming months.”

Residential Development Activities

At March 31, 2008, the Company’s residential development activities and other investments were comprised primarily of the following:

• The 259 unit Gold Peak condominium development in Highlands Ranch, Colorado (“Gold Peak”). Sales commenced in January 2006 and 205 Gold Peak units were sold as of March 31, 2008, with an additional 13 units under contract with nominal down payments.

• 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 21 homes were sold as of March 31, 2008, with an additional three homes under contract for which deposits of 10% of the contract sales price are provided by the buyers.

• The Stewardship, a single-family home development in Claverack, New York (“Claverack”), which is subdivided into 48 developable single-family home lots on 235 acres.

The following table presents Gold Peak and East Lyme sales information for the respective periods:

		For the Three Months Ended March 31,							Project Total Through March 31,
		2008				2007			2008
Gold Peak:
Number of units sold			20				21			205
Gross sales proceeds		$	6,832,000			$	6,547,000		$	62,800,000
East Lyme:
Number of homes sold			2				2			21
Gross sales proceeds		$	1,552,000			$	1,384,000		$	14,939,000

In December 2004, the Company obtained development and construction financing for East Lyme in the aggregate amount of approximately $21,177,000 (the “East Lyme Construction Loan”). The East Lyme Construction Loan was extended with term modifications on April 28, 2008. The interest rate for the East Lyme Construction Loan increased from LIBOR + 2.15% to LIBOR + 2.50% over the extension period which matures in June 2009. The extension terms also require minimum principal repayments if repayments from sales proceeds are not sufficient to meet required repayment amounts. The minimum liquidity requirement was also reduced from $10,000,000 to $7,500,000 with further decreases as the balance of the development portion of the loan is permanently reduced. The balance of the East Lyme Construction Loan was approximately $6,977,000 and $6,966,000 at March 31, 2008 and December 31, 2007, respectively.

Regarding the other residential development projects, the balance of the Gold Peak Construction Loan was approximately $3,264,000 and $6,417,000 at March 31, 2008 and December 31, 2007, respectively, and the Claverack project is unencumbered at each balance sheet date.

Investor Conference Call

The Company will host a conference call on Friday, May 16, 2008, at 10:00 AM (EDT). This call is for the benefit of existing and prospective stockholders, stock analysts, and other interested parties to discuss the first quarter 2008 operating results and other matters. The Company has a policy of not providing quarterly or annual guidance.

The U.S. dial-in number for this teleconference is (800) 860-2442. The international dial-in number is (412) 858-4600. A replay of the conference call will be available from shortly after the conference call through 5:00 PM (EDT) on May 23, 2008 by using U.S. dial-in number (877) 344-7529 and entering the following passcode: 419360# (international callers may use dial-in number (412) 317-0088 and use the same passcode). An audio webcast of the conference call will 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 was formed through a May 2007 merger between Private Reis and Wellsford. Reis carries on the businesses of Private Reis and Wellsford.

Private Reis was founded in 1980 as a provider of commercial real estate market information and today is a leader in that field. Reis maintains a proprietary database containing detailed information on commercial real properties in neighborhoods and metropolitan markets throughout the U.S. The database contains information on apartment, retail, office 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 and quantify 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 to information and analytical tools designed to facilitate both debt and equity transactions. In addition to trend and forecast analysis at neighborhood and metropolitan levels, the product offers detailed building-specific information such as rents, vacancy rates and lease terms, property sale information, 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 and absorption. 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.

Prior to the merger, Wellsford was a public company operating as a real estate merchant banking firm which acquired, developed, financed and operated real properties and invested in private and public real estate companies. The Company’s primary operating activities immediately prior to the merger were the development, construction and sale of three residential projects and its approximate 23% ownership interest in Private Reis. The Company continues to develop, construct and sell these existing residential projects.

Cautionary Statement Regarding Forward-Looking Statements

The Company makes forward-looking statements in this press release. 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 or expectations, or the impact of legal, regulatory or supervisory matters on the Company’s business’s 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 future business prospects, potential acquisitions, revenue, expenses, income, cash flows, valuation of assets and liabilities and other business metrics of the Company and its businesses, including EBITDA; and

• statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions.

These 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 in the forward-looking statements. Some factors that could cause actual results to differ include:

• revenues may be lower than expected;

• the possibility of litigation arising as a result of terminating the plan of liquidation;

• adverse changes in the real estate industry and the markets in which the Company operates;

• the inability to retain and increase the Company’s customer base;

• competition;

• inability to attract and retain sales and senior management personnel;

• difficulties in protecting the security, confidentiality, integrity and reliability of the Company’s data;

• legal and regulatory issues;

• changes in accounting policies or practices; and

• the risk factors listed under “Item 1A. Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2007, which was filed with the Securities and Exchange Commission on March 14, 2008.

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

The following financial information should be read in conjunction with Reis’s unaudited 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 March 31, 2008, which was filed with the Securities and Exchange Commission on May 12, 2008.

CONSOLIDATED BALANCE SHEET (GOING CONCERN BASIS)
	March 31, 2008				December 31, 2007
ASSETS	(Unaudited)
Current assets:
Cash and cash equivalents	$	25,601,320			$	23,238,490
Restricted cash and investments		3,267,773				3,663,789
Receivables, prepaid and other assets		4,103,054				8,068,675
Real estate assets under development		15,901,013				20,731,762
Total current assets		48,873,160				55,702,716
Furniture, fixtures and equipment, net		2,104,449				2,257,045
Other real estate assets		6,388,694				6,040,204
Intangible assets, net of accumulated amortization of $2,900,104 and $1,967,608, respectively		24,873,785				25,353,030
Goodwill		54,824,648				54,824,648
Other assets		649,859				670,829
Total assets	$	137,714,595			$	144,848,472
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of loans and other debt	$	178,897			$	175,610
Current portion of Bank Loan		2,000,000				1,500,000
Construction payables		1,193,002				2,791,896
Construction loans payable		10,241,184				13,382,780
Accrued expenses and other liabilities		6,576,255				8,629,376
Reserve for option liability		99,377				527,034
Deferred revenue		12,566,972				13,262,114
Total current liabilities		32,855,687				40,268,810
Non-current portion of Bank Loan		21,875,000				22,750,000
Other long-term liabilities		779,883				816,741
Deferred tax liability, net		1,645,580				1,313,580
Total liabilities		57,156,150				65,149,131
Commitments and contingencies
Stockholders’ equity:
Common stock, $.02 par value per share, 101,000,000 shares authorized, 10,984,517 shares issued and outstanding		219,690				219,690
Additional paid in capital		99,347,306				98,936,084
Retained earnings (deficit)		(19,008,551	)			(19,456,433	)
Total stockholders’ equity		80,558,445				79,699,341
Total liabilities and stockholders’ equity	$	137,714,595			$	144,848,472

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (GOING CONCERN BASIS) (Unaudited)
	For the Three Months Ended March 31, 2008				Pro Forma* For the Three Months Ended March 31, 2007
Revenues:
Subscription revenue	$	6,411,104			$	5,437,899
Revenue from sales of residential units		8,383,825				8,131,525
Total revenue		14,794,929				13,569,424
Cost of sales:
Cost of sales of subscription revenue		1,328,880				1,317,851
Cost of sales of residential units		6,928,041				6,979,947
Total cost of sales		8,256,921				8,297,798
Gross profit		6,538,008				5,271,626
Operating expenses:
Sales and marketing		1,355,273				1,485,886
Product development		525,242				426,730
Property operating expenses		249,599				215,862
General and administrative expenses		3,421,740				5,058,135
Total operating expenses		5,551,854				7,186,613
Total other income (expenses)		(138,272	)			(319,036	)
Income (loss) before income taxes		847,882				(2,234,023	)
Income tax expense		400,000				42,000
Net income (loss)	$	447,882			$	(2,276,023	)
Net income (loss) per common share:
Basic	$	0.04			$	(0.21	)
Diluted	$	0.01			$	(0.21	)
Weighted average number of common shares outstanding:
Basic		10,984,517				10,732,939
Diluted		11,179,377				10,732,939
* The pro forma combined statements of operations are presented as if the merger had been consummated, the proceeds from financing had been received and the plan of liquidation had been terminated as of January 1, 2006. The pro forma combined statements of operations are unaudited and are not necessarily indicative of what the actual financial results would have been had the merger been consummated, the proceeds from financing been received and the plan of liquidation been terminated as of January 1, 2006, nor does it purport to represent the future results of operations.

Reis, Inc.
Mark P. Cantaluppi
Vice President, Chief Financial Officer
212-921-1122