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Executive Compensation Tables and Discussion The following table includes information concerning compensation paid to or earned by the Companys named executive officers listed in the table for 2009, 2010 and 2011. SUMMARY COMPENSATION TABLE Non-Equity Incentive Plan Compensation(2) ($) $ 1,025,000 $ $ 350,559 385,379

Name and Principal Position Andrew C. Florance Chief Executive Officer and President

Year 2011 2010 2009

$ $ $

Salary ($) 500,122 456,560 456,560

Bonus ($) $ $ $

Stock Awards(1) ($) 1,006,016 871,174 535,000

$ $ $

Option Awards(1) ($) 900,769 745,416 584,326

All Other Compensation ($) $ 6,104(3a) $ $ $ 9,362 10,942 $ $

Total ($) 3,438,011 2,433,071 1,972,207

Brian J. Radecki Chief Financial Officer

2011 2010 2009

$ $ $

281,454 249,600 249,600

$ $ $

337,244 321,404 180,000

$ $ $

301,693 274,456 195,109

$ $ $

287,100 136,487 104,115

$ $ $

7,191(3b) $ 8,250 9,114 $ $

1,214,682 990,197 737,938

John L. Stanfill Sr. Vice President Sales & Customer Service

2011 2010 2009

$ $ $

285,426 250,000 250,000

$ $ $

280,084 132,616 72,500

$ $ $

252,129 112,056 78,043

$ $ $

527,374(4) $ 233,426 25,000 $ $

6,756(3b) $ 8,250 9,115 $ $

1,351,769 736,348 434,658

Jennifer L. Kitchen Sr. Vice President Research

2011 2010 2009

$ $ $

201,859 197,600 197,600

$ $ $

142,900 148,015 84,039

$ $ $

127,142 125,048 88,050

$ $ $

141,281 76,059 112,780

$ $ $

7,088(3b) $ 7,078 7,778 $ $

620,270 553,800 490,247

Paul Marples(5) Managing Director, CoStar UK Limited

2011 2010 2009

$ $ $

245,958 224,966 227,999

$ $ $

143,904 148,015 72,500

$ $ $

127,142 125,048 78,043

$ $ $

34,378 34,650 46,439

$ $ $

12,127(3c) $ 10,955 11,423 $ $

563,509 543,634 436,404

__________ (1) This column shows the aggregate grant date fair value of the awards granted in the years shown, computed in accordance with FASB ASC Topic 718 pursuant to SEC rules. These amounts reflect the Companys accounting expense and do not correspond to the actual value that will be realized by the named executive officers. Additional information regarding the size of the awards is set forth in the notes to the Grants of Plan Based Awards and Outstanding Equity Awards tables. Assumptions used in calculating the fair value for awards granted in 2011 are described in Note 14 to the audited financial statements in the Companys Annual Report on Form 10-K for the period ended December 31, 2011. Except as specifically noted otherwise in footnote 4 with respect to Mr. Stanfill, this amount represents the annual cash incentive earned under the Companys annual incentive bonus plan based on the executives achievement of pre-determined individual and Company financial goals. These bonuses are awarded and paid in the following year after actual financial results are determined for the year for which performance was measured. For additional information regarding the annual cash incentives paid for 2011 performance, see Compensation Discussion and Analysis at pages 43-48 of this Proxy Statement. Pursuant to the CoStar Realty Information, Inc. 401(k) Plan (a defined contribution plan available generally to employees of the Company) (the 401(k) Plan), for the 2011 plan year, Mr. Florance deferred a portion of his annual compensation and CoStar made a matching contribution in the amount of $4,992. In 2011, the employer contribution was capped at 50% of the executives deferral amount on a maximum of six percent of the executives gross pay. The Company paid $1,112 in annual premiums to maintain a $1 million life insurance policy for the benefit of Mr. Florance. 56

(2)

(3a)

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(3b)

(3c)

(4) (5)

Pursuant to the 401(k) Plan, for the respective plan year, the named executive officer deferred a portion of his or her annual compensation and the Company made a matching contribution based on the amount deferred by each executive officer. The amount shown is the Companys matching contribution. In 2011, the employer contribution was capped at 50% of the executives deferral amount on a maximum of six percent of the executives gross pay. Pursuant to a defined contribution scheme available generally to employees of the Companys wholly owned subsidiary, CoStar UK Limited, Mr. Marples defers a portion of his annual compensation and CoStar UK Limited makes a corresponding contribution in an amount tied to the amount deferred by Mr. Marples, based on the Companys contribution rules for defined contribution schemes and Mr. Marples employment agreement. In 2011, the employer contribution was capped at 50% of the executives deferral amount on a maximum of six percent of the executives gross pay. CoStar UK Limiteds corresponding contribution for 2011 was $7,378. Executives are entitled to make contributions either to the CoStar UK Limited pension scheme or their personal pension scheme. Mr. Marples has elected to have his contributions made to his personal pension scheme. In addition, the Company paid $4,748 in health insurance premiums for the benefit of Mr. Marples. This amount represents total monthly commission payments of $485,336 paid to Mr. Stanfill for performance in 2011, which are based on the Companys monthly net new subscription contract amounts, and his annual cash incentive of $42,038, earned for 2011 under the Companys annual incentive bonus plan. All dollar amounts listed for Mr. Marples for 2011 have been converted from British pounds using a conversion rate of 1.60, which is the average exchange rate for the period from January 1, 2011 to December 31, 2011. All dollar amounts listed for Mr. Marples for 2010 have been converted from British pounds using a conversion rate of 1.55, which is the average exchange rate for the period from January 1, 2010 to December 31, 2010, and all dollar amounts listed for Mr. Marples for 2009 have been converted from British pounds using a conversion rate of 1.57, which is the average exchange rate for the period from January 1, 2009 to December 31, 2009.

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