Earnings Highlights: GAAP results reflect the acquisition of Institutional Shareholder Services (ISS) on January 11, 2007 and the Center for Financial Research and Analysis (CFRA) acquisition of August 1, 2007. Pro forma results are presented as if ISS and CFRA were acquired on January 1, 2007 (see Tables D and E for a reconciliation of GAAP and Pro Forma financial results).
• Third quarter GAAP revenues increased 21.5% to $75.6 million, and 18.8% on a pro forma basis. GAAP revenues for the nine month period ended September 30, 2008 increased 27.9% to $220.9 million, and 19.1% on a pro forma basis.
• Third quarter Adjusted EBITDA increased 35.8% to $25.0 million, and 32.7% on a pro forma basis with an Adjusted EBITDA margin of 33.1%. Adjusted EBITDA for the nine month period ended September 30, 2008 increased 40.2% to $72.0 million, and 31.0% on a pro forma basis, with an Adjusted EBITDA margin of 32.6%.
• GAAP EPS (diluted) increased to $0.09 in the third quarter of 2008 up from $0.01 in the third quarter of 2007. Adjusted EPS (before amortization of intangibles and stock-based compensation) for the third quarter of 2008 was $0.16, up from $0.09 in third quarter of 2007.
• GAAP cash flow from operations grew to $40.3 million in the third quarter of 2008 driving an increase of cash from $108.2 million at June 30, 2008 to $151.7 million at September 30, 2008.

"We continue to deliver strong revenue, Adjusted EBITDA, Adjusted EBITDA margin expansion and cash flow growth despite the challenging market environment," said Ethan Berman, Chief Executive Officer of RiskMetrics Group. "Our 21.5% third quarter revenue growth is indicative of our strong multi-asset class market position, the resilience of our diverse global client base and the ever increasing importance of risk transparency."

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