CoStar Group Obtains $1 Million Judgment and Shuts Down Firm that Redistributed CoStar's...

CoStar Group Obtains $1 Million Judgment and Shuts Down Firm that
Redistributed CoStar's Real Estate Information Database
CoStar Establishes Reward Program; Whistleblowers Who Expose Data Theft or
Illegal Password Sharing Eligible for 25% of Any Monetary Payment Resulting
from Successful Prosecution

BETHESDA, Md., Jan. 17 /PRNewswire-FirstCall/ -- CoStar Group, Inc.
(Nasdaq: CSGP), the number one provider of information services to the
commercial real estate industry, announced today that it obtained a $1,000,000
judgment to settle a complaint brought against Centers & Malls, LLC, a Lake
Forest, Illinois limited liability company, for infringing on CoStar's
copyrighted commercial real estate information. The lawsuit, filed in the
United States District Court of Maryland, alleged that Centers & Malls sold
and distributed a real estate information product containing shopping center
data that the Court found had been illegally obtained and copied from CoStar.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060510/COSTARLOGO )
In addition to the $1,000,000 judgment, Centers & Malls agreed to cease
all business operations, shut down its web site and permanently discontinue
all sales, distribution and use of its real estate information product. Also,
three individuals and one corporate entity associated with Centers & Malls
agreed to execute non-compete agreements with CoStar covering a period of
three years.
CoStar won a temporary restraining order against Centers & Malls last year
after Judge Alexander Williams, Jr. of the United States District Court for
Maryland ruled in CoStar's favor. In ruling for CoStar, the Court affirmed
that CoStar's proprietary method of compiling and classifying information in
its database is fully protected under copyright law. The Court found that a
Centers & Malls partner, Garrett Van Siclen, had illegally obtained shopping
center data from CoStar. The Court also found that two former CoStar sales
representatives who had been working for Centers & Malls -- Robert Galvin and
Guy Hays -- violated the non-compete provisions of their employment terms with
CoStar.
"On behalf of our thousands of customers who subscribe to and use our
service, CoStar is committed to prosecuting those who fraudulently access or
otherwise illegally use our images or information databases," said CoStar
Group General Counsel Jonathan Coleman.
CoStar invests millions of dollars in research each year and customers
expect the company to provide the highest quality information service
available in the commercial real estate industry, and to keep prices as low as
possible. To date, CoStar has historically managed to avoid significant price
increases other than those consistent with the approximate rate of inflation.
"However, data theft is one of the biggest obstacles we face as we try to
simultaneously control costs and continue to deliver a high quality
information service to the thousands of legitimate customers," said Coleman.
"The acts of those who gain access to our data illegally threaten our ability
to provide customers with the ongoing data enhancements and pricing they
deserve," said Coleman.
"Furthermore, customers who subscribe to CoStar expect us to take every
reasonable measure to ensure that the individuals and firms that subscribe are
the ones who benefit from the competitive advantage CoStar's information
service offers, not the ones who resort to theft," Coleman added.
"Fortunately, the technology available today makes it easier to detect theft
and identify illegal password sharing."
To help protect customers and combat data theft, CoStar Group has
established an internal anti-piracy group that uses extensive fraud-detection
technology to continually monitor CoStar's online information products and to
detect and prevent unauthorized access. When unlawful activity is detected,
the anti-piracy group conducts investigations and prosecutes accordingly.
CoStar is also enlisting its customers' help in reporting suspected cases
of data theft by establishing a sizable reward program for anyone who reports
unlawful sharing of passcodes or access to CoStar's information services that
results in successful prosecution. Under the reward program, subject to
certain conditions, CoStar is prepared to share up to 25% of any monetary
payment (net of legal and other costs) resulting from that prosecution. CoStar
also unveiled a new web site, www.costar.com/antipiracy, which provides more
information about its reward program and also informs customers about the
broad use of CoStar data, maps and photographs that they enjoy as part of
their online subscription service.
About CoStar Group, Inc.
CoStar Group, Inc. (Nasdaq: CSGP) is the number one provider of
information 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, the company has
approximately 1,300 employees, including the largest professional research
organization in the industry. For more information, visit 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, 2006, under the
heading "Risk Factors" and CoStar Group's Form 10-Q for the quarter ended
September 30, 2007, under the heading "Risk Factors." In addition to these
statements, there can be no assurance that CoStar will be able to successfully
prosecute those who fraudulently obtain access to or otherwise illegally use
CoStar's images or information databases; that CoStar will continue to be able
to avoid significant price increases other than those consistent with the
approximate rate of inflation; or that CoStar will be able to provide
customers with ongoing data enhancements and reasonable pricing. All forward-
looking statements are based on information available to CoStar on the date
hereof, and CoStar assumes no obligation to update such statements.
SOURCE CoStar Group, Inc.

Tim Trainor, Communications Director, +1-301-280-7695, ttrainor@costar.com;
Jonathan Coleman, General Counsel, +1-301-280-3859, jcoleman@costar.com, both
of CoStar Group, Inc.