The third-quarter 2010 results detailed below reflect the predecessor period prior to the Company's acquisition (from July 1 through July 29) and the successor period following it (from July 30 through September 30) on a combined basis. Additional non-GAAP financial measures for the combined periods with applicable reconciliations are set forth on the pages following the financial tables of this press release.

Interactive Data's third-quarter 2010 revenue was $197.9 million, an increase of 3.0% compared with $192.1 million for the same quarter of 2009. Third-quarter 2010 revenue includes a reduction of $2.3 million relating to the amortization of acquisition-related deferred revenue. Excluding this adjustment, non-GAAP revenue was $200.3 million in the third quarter of 2010, an increase of 4.3% over the same quarter last year. Third-quarter 2010 organic (non-GAAP) revenue, which excludes the deferred revenue adjustment, the impact of changes in foreign exchange rates, the contribution of businesses acquired in the past 12 months and related intercompany eliminations, grew 2.2% from the same quarter in 2009.

Interactive Data's third-quarter 2010 loss from operations was $85.9 million, compared with income from operations of $58.4 million in the same period one year ago. The Company's third-quarter 2010 loss from operations reflects the impact of the following items:

* Merger costs of $100.8 million;
* Depreciation and amortization expense of $36.1 million, an increase of $20.2 million from the third quarter of 2009;
* Stock-based compensation expense of $18.1 million, an increase of $14.6 million versus the third quarter of 2009;
* Other non-recurring or unusual items of $6.6 million, comprising the deferred revenue adjustment and severance charges, an increase of $5.5 million from the third quarter of 2009; and
* Management fees of $0.5 million.

"During the third quarter of 2010, our Pricing and Reference Data business produced its third consecutive quarter of improved organic revenue growth, and we also received good contributions from our Fixed Income Analytics and our U.S. Managed Solutions businesses," stated Mason Slaine, who became Interactive Data's chairman, president and chief executive on September 16, 2010. "The underlying profitability of our business remained solid although comparisons with the prior year's third quarter are impacted by the above-mentioned items. We move forward focused on taking the necessary steps to further improve the overall efficiency of our business while continuing to invest in areas that will drive organic revenue growth over the long term. To help us achieve our goals, we have added several experienced, talented executives to our management team."

Acquisition of Interactive Data by Silver Lake and Warburg Pincus:

* On July 29, 2010, Interactive Data announced the completion of its acquisition by investment funds managed by Silver Lake and Warburg Pincus. Under the terms of the agreement, the Company's stockholders received $33.86 per share in cash, without interest.

Segment Reporting, Related Operating Highlights and Revenue by Geography

Institutional Services Segment:

* Interactive Data Pricing and Reference Data reported third-quarter 2010 revenue of $129.0 million, a 1.8% increase over the third quarter of 2009. Excluding the $1.5 million reduction associated with the deferred revenue adjustment, the effects of foreign exchange and intercompany eliminations related to the December 2009 acquisition of certain Online Financial Solutions (OFS) assets, third-quarter 2010 organic (non-GAAP) revenue for this business increased by 3.9% from the same period last year. The organic revenue growth for this business reflects ongoing demand for fixed income evaluated pricing and reference data services primarily from existing customers in North America. This business recently added evaluated pricing for European money market instruments, complementing its existing coverage of US and Asian money market instruments. In addition, this business has introduced its Evaluated Pricing Challenge Portal, an innovative client management and compliance oversight tool designed to provide audit trails and compliance reports for a firm's pricing challenge process.
* Interactive Data Real-Time Services generated third-quarter 2010 revenue of $40.8 million, which is 12.5% higher than the comparable quarter of 2009. Excluding the $0.6 million reduction associated with the deferred revenue adjustment, the effects of foreign exchange, the contribution of acquired assets and related intercompany eliminations, third-quarter 2010 organic (non-GAAP) revenue was essentially unchanged from the same quarter of 2009. In recent months, this business continued to add new wealth management capabilities to its PrimeTerminal offering, and introduced the Interactive Data 7ticks latency portal, which serves as a one-stop centralized resource designed for electronic traders to measure order latency, monitor network performance, and determine the overall health of their trading infrastructure.
* Interactive Data Fixed Income Analytics reported revenue for the third quarter of 2010 of $8.7 million, an increase of 6.1% from the 2009 third quarter. Excluding the $0.1 million reduction associated with the deferred revenue adjustment and the effects of foreign exchange, organic (non-GAAP) revenue in the third quarter of 2010 grew by 7.1% over the same period last year primarily on the strength of product upgrades by existing customers. In October 2010, this business announced the introduction of BondEdge® OnDemand, a fully-hosted offering that provides clients an alternative to installing and managing BondEdge as an in-house application.

Active Trader Services Segment:

* Interactive Data's Desktop Solutions business (formerly known as eSignal) reported third-quarter 2010 revenue of $19.4 million, a decrease of 6.9% from the third quarter of 2009. Excluding the $0.2 million reduction associated with the deferred revenue adjustment and the effects of foreign exchange, third-quarter 2010 organic revenue decreased by 4.7%, from the same period last year. The decline in Desktop Solutions revenue primarily reflects a 3.7% decrease in the active trader direct subscriber base to approximately 55,000 terminals as well as lower advertising revenue. During the third quarter of 2010, the eSignal division was renamed as Interactive Data Desktop Solutions.

Other Third-Quarter 2010 Financial and Operating Highlights

Effects of Foreign Exchange:

* Interactive Data's third-quarter 2010 revenue was unfavorably impacted by $2.8 million due to the effects of foreign exchange resulting from a stronger US dollar in comparison with the third quarter of 2009. Total costs and expenses in the second quarter of 2010 were favorably impacted by $2.8 million as a result of the effects of foreign exchange.

Senior Management Team:

* During the past several months, Interactive Data has added a number of accomplished, experienced executives to its senior management team. As previously announced, Mason Slaine was appointed chairman, president and chief executive officer in September 2010. Later that same month, Alex Goor, a respected financial technology executive, joined Interactive Data as chief information officer responsible for global development and operations. In October 2010, Vincent Chippari was named senior vice president and chief financial officer, and Jay Nadler was hired as chief operating officer. Both individuals bring considerable experience from senior leadership roles at top financial information, software and technology companies to their respective roles.

Results for the First Nine Months of 2010

* For the first nine months ended September 30, 2010, Interactive Data reported revenue of $588.8 million, a 4.6% increase over $563.1 million in the same period last year. Organic (non-GAAP) revenue, which excludes the $2.3 million deferred revenue adjustment, the effects of foreign exchange, and revenue and intercompany eliminations related to acquisitions, organic (non-GAAP) revenue for the first nine months of 2010 increased by 1.5% over the comparable period of 2009.
* Interactive Data's loss from operations for the first nine months of 2010 was $5.9 million, compared with income from operations of $157.3 million in the same period one year ago. The Company's loss from operations for the first nine months of 2010 reflects the impact of the following items:
* Merger costs of $116.1 million;
* Depreciation and amortization expense of $72.4 million, an increase of $26.8 million from the same period of 2009;
* Stock-based compensation expense of $24.8 million, an increase of $12.1 million from the same period one year ago;
* Other non-recurring or unusual items of $7.1 million, comprising the deferred revenue adjustment and severance charges, an increase of $5.6 million from the same period of 2009; and
* Management fees of $0.5 million.