CoStar Group Vindicates Commercial Brokers' Ability to Market Their Listings Where They Choose

Judge Orders LoopNet to Stop Blocking CoStar's Access to Brokers' Own Websites

• Press Release
• Source: CoStar Group, Inc.
• On 11:26 am EDT, Thursday July 23, 2009

BETHESDA, Md., July 23, 2009 (GLOBE NEWSWIRE) -- CoStar Group, Inc. (Nasdaq:CSGP - News), the number one provider of information/marketing services to the commercial real estate industry, announced today that a court has required LoopNet, Inc. to allow real estate brokers to share their property listings with CoStar, ensuring their right to market their property listings as widely as possible.

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In a court order issued by the California Superior Court in Los Angeles, Judge Palazuelos imposed a condition on LoopNet that it not block CoStar from accessing broker websites "powered" by the LoopLink service beyond normal usage limits applicable to all users. Judge Palazuelos' order also included a provision requiring LoopNet to provide standard access to the non-password protected areas of LoopNet.com.

Contrary to LoopNet's recent public assertion, the court specifically avoided any ruling on the merits of either LoopNet's or CoStar's legal positions. In fact, the only ruling on the merits thus far in the case was the court's opinion last year that held that CoStar's conduct appeared to be within its rights under a 2005 settlement agreement between the parties.

"This case protects the right of real estate brokers to market their own listings through outlets of their own choosing," noted CoStar Group General Counsel Jonathan Coleman. "In defending itself against this lawsuit brought by LoopNet, CoStar successfully forced LoopNet to concede that just because a broker uses LoopNet to upload his or her own listings, it does not give LoopNet the right to prevent the broker from sharing that listing information with other marketing services. LoopNet does not own or control the listing. The broker does."

Under the 2005 settlement agreement between CoStar and LoopNet, brokers who entered their listing information on LoopNet are entitled to send information on their listings to CoStar (or direct a member of CoStar's research staff to retrieve the listing information) in order to have their listings appear in CoStar's online information service. LoopNet filed suit in November 2007, objecting to, among other things, the practice of LoopNet's own clients referring CoStar researchers to listing information appearing on their own websites and using the email-forwarding feature on LoopNet's web site to send their own listings to CoStar for the purpose of marketing their listings on CoStar.

CoStar believes that LoopNet's lawsuit is an effort to stifle competition from Showcase, CoStar's innovative listing marketing service. Showcase offers real estate professionals a more cost-effective online lead generation solution. To date, more than 5,000 brokers advertise their listings on Showcase. CoStar believes LoopNet has pursued its complaint and resorted to restricting the ability of its clients to market their listings more widely in an attempt to stem the growing popularity of CoStar's Showcase service.

"We continue to believe LoopNet's decision to instigate this costly lawsuit was unwarranted and ill advised," Coleman added. "Not only were LoopNet's repeated efforts to block CoStar's valid use of brokers' listings information posted on their own websites a breach of our longstanding agreement, but its blatant attempts to mischaracterize this activity in its public announcements is irresponsible and unethical."

About CoStar Group, Inc.

CoStar Group, Inc. (Nasdaq:CSGP - News) is the number one provider of information/marketing services to commercial real estate professionals in the United States as well as the United Kingdom. CoStar's suite of services offers customers access via the Internet to the most comprehensive database of commercial real estate information throughout the U.S. as well as in the United Kingdom and France. Headquartered in Bethesda, MD, CoStar has approximately 1,300 people working for the company worldwide, including the largest professional research organization in the industry. For more information, visit http://www.costar.com.

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations, beliefs, intentions or strategies regarding the future. These statements are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. More information about potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including CoStar's Form 10-K for the year ended December 31, 2008, and CoStar's Form 10-Q for the quarter ended March 31, 2009, under the heading "Risk Factors." In addition to these statements, there can be no assurance that the court's order will ensure brokers' rights to market their property listings as widely as possible; that LoopNet's lawsuit will stifle competition from Showcase; and that LoopNet's complaint and restrictions placed on its clients when marketing their listings will stem the growing popularity of CoStar's Showcase service. All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update such statements.

CoStar Group, Inc.
Analysts/Investors:
Brian J. Radecki, Chief Financial Officer
(301) 664-9132
bradecki@costar.com
Media:
Timothy J. Trainor, Communications Director
(301) 280-7695
ttrainor@costar.com