Together, RiskMetrics and KLD will offer institutional investors a comprehensive suite of ESG services so they can more easily incorporate ESG analytics into their investment processes. Specifically, the combined firms will deliver increased coverage, more robust data, expert insights, and user-friendly tools. These enhanced capabilities will enable more investors to uncover the ESG risks and opportunities of thousands of companies worldwide.

Led by Peter Kinder, President, and Tim Brennan, Chief Operating Officer, KLD provides ESG research, compliance screening and indices to over 500 investment professionals worldwide. Founded in 1988, KLD published the first research designed to evaluate the risks and opportunities associated with corporate social and environmental performance. Today, 30 of the top 50 institutional money managers use KLD services to integrate ESG factors into investment decisions.

"Our clients have indicated that ESG performance is a critical benchmark of a corporation's risks and long-term value," said Knut Kjaer, President of RiskMetrics Group. "KLD's ESG capabilities, combined with our financial risk and corporate governance experience, will give investors worldwide a more thorough picture of sustainability and risk across geographic and industry boundaries."

"RiskMetrics' commitment to sustainability has made a strong impression on KLD," said Peter D. Kinder, President of KLD Research & Analytics, Inc. "Both firms have long strived to make ESG analysis an integral part of mainstream investment research. By joining with RiskMetrics, we can serve more global investors than ever before."

RiskMetrics currently provides sustainability data, compliance screening, climate risk management and advisory services to more than 400 global institutions.

Separately, RiskMetrics today announced its financial results for the third quarter ended September 30, 2009.

(Note: Percentage changes are referenced to the comparable period in fiscal yel yeiscal year 2008, unless otherwise noted.)

* Third quarter 2009 revenues decreased 2.1% to $74.0 million and revenue for the nine months ended September 30, 2009 increased 2.7% to $226.9 million.
* Third quarter 2009 Adjusted EBITDA increased 2.9% to $25.8 million, with an Adjusted EBITDA margin of 34.8%. Adjusted EBITDA for the nine months ended September 30, 2009 increased 14.3% to $82.3 million with an Adjusted EBITDA margin of 36.3%.
* GAAP EPS for third quarter 2009 was $0.11, up from $0.09 in the prior year.
* Adjusted EPS (before amortization of intangibles, one-time costs, and stock-based compensation) for the third quarter 2009 was $0.19, up from $0.16 in the prior year.

"Due to the decline in new sales and renewal rates during the first part of 2009, revenue growth has flattened compared to the prior year," said Ethan Berman, Chief Executive Officer of RiskMetrics Group. "However, we are beginning to see improved renewal rates, increased new sales and a growing sales pipeline. We have controlled costs and realized the benefits of streamlining operations as Adjusted EBITDA for the nine months increased 14.3% to $82.3 million despite flattening revenue growth."