Reis, Inc. (NASDAQ:REIS) ("Reis" or the "Company") announced its results for the fourth quarter and seven months ended December 31, 2007. On May 30, 2007, Reis, Inc., a privately held real estate information company ("Private Reis"), merged 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 stockholders in analyzing the two separate businesses.

Consolidated Financial Results

For the three and seven months ended December 31, 2007, the Company's consolidated net loss was $(2,441,408) and $(1,290,176), respectively, which losses were primarily the result of recording an approximate $3,149,000 impairment charge in December 2007 related to a residential development project. Total revenues for the three and seven months ended December 31, 2007 were $14,165,947 and $36,366,907, respectively. During the three month period, revenue was comprised of subscription revenue of $6,398,420 and revenue from sales of residential units of $7,767,527. During the seven month period, revenue was comprised of subscription revenue of $14,615,126 and revenue from sales of residential units of $21,751,781.

For the year ended December 31, 2007, pro forma revenue for the consolidated company totaled $57,890,380, which was comprised of subscription revenue of $23,667,637 and revenue from sales of residential units of $34,222,743. These amounts represent a 22.7% increase and a 6.3% decrease, respectively, over the corresponding pro forma period in 2006 of $19,287,696 and $36,514,455, respectively.

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 December 31, 2007, EBITDA for the Reis Services segment was approximately $2,575,000, representing a 40.2% EBITDA margin and 45.3% EBITDA growth over pro forma EBITDA of $1,772,000 for the corresponding pro forma period in 2006. For the seven months ended December 31, 2007, EBITDA for Reis Services was approximately $5,820,000, representing a 39.8% EBITDA margin. For the year ended December 31, 2007, pro forma EBITDA for Reis Services was approximately $8,508,000, representing a 35.9% EBITDA margin and 38.7% EBITDA growth over pro forma EBITDA of $6,136,000 for the corresponding pro forma period in 2006.

Consolidated Balance Sheet Information

At December 31, 2007, Reis had consolidated assets of $144,848,472, including $23,238,490 of cash and cash equivalents, $65,149,131 of liabilities, and stockholders' equity of $79,699,341 or $7.26 per common share based upon 10,984,517 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 December 31, 2007, the Company's equity in its remaining real estate assets was approximately $11,840,000 (or 14.9% of consolidated stockholders' equity).

At December 31, 2007, the Company had 10,984,517 common shares outstanding. Officers and directors of Reis own approximately 24.2% of the common shares outstanding.

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:

Reis Services

As of December 31, 2007, 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 "2007 was a year characterized by important milestones in the history of Reis. Not only did we consummate our merger with Wellsford, become a public company, and begin trading on the NASDAQ, but we also effectively integrated the operations of both entities. While accomplishing these essential tasks, we launched several new releases of Reis's product, including an expansion of 87 apartment markets, the introduction of customizable email alerts and enhancements to our new construction coverage. We are extremely pleased with the financial performance of Reis Services. In the third and fourth quarters, in the face of deteriorating economic and credit market conditions, demand for our market information remained strong. We posted record EBITDA during this period and an EBITDA margin that accelerated to 40% in the third and fourth quarters of 2007.

As we have previously indicated, our historical experience suggests that challenging market conditions encourage commercial real estate investors to assess supply and demand fundamentals with a heightened appreciation for volatility and downside risk. Usage of Reis data and sales of our product indicate that investors are currently acting in a manner that is consistent with our historical experience. While information products are not completely insulated from the ramifications of a difficult marketplace, it has been gratifying to observe how Reis SE meets the changing priorities and concerns of lenders and investors. In fact, in 2007, senior management has acted aggressively to introduce content and features that provide significant incremental benefit to users given the realities of the current market."

Residential Development Activities

At December 31, 2007, 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 185 Gold Peak units were sold as of December 31, 2007, with an additional 20 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 19 homes were sold as of December 31, 2007, 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:

In December 2007, the Company recorded aggregate impairment charges of approximately $3,149,000 related to its East Lyme residential development. These charges resulted from continuing deteriorating market conditions in the fourth quarter of 2007 and management's expectations for the future.

Jeffrey Lynford, Chairman of Reis, stated that "The residential market continued to decline in the fourth quarter of 2007 which resulted in our recording the impairment charge in December 2007 related to our East Lyme project. Analysis regarding our other two projects supported our current carrying amounts for those assets. Although we believe that this charge is appropriate at this time and the values of our other two projects are recorded at appropriate amounts at December 31, 2007, further deterioration in market conditions may result in additional impairment changes in the future. On a brighter note, we continue to sell condominium units at Gold Peak, with 185 units sold at December 31, 2007, including 77 closings in 2007, and 20 more under contract at that date."

Investor Conference Call

The Company will host a conference call on Monday, March 31, 2008, at 10:00AM (EDT). This call is for the benefit of existing and prospective stockholders, stock analysts, and other interested parties to discuss the 2007 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 9:00 AM (EDT) on April 8, 2008 by using U.S. dial-in number (877) 344-7529 and entering the following passcode: 417299# (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, income, cash flows 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 SEC 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 audited 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, 2007.