Sharp Drop in Demand in Q4 - Results in Falling Revenues

Overall demand for legal services dropped sharply in the fourth quarter of 2008, causing a further decline in law firm productivity. Firms participating in Peer Monitor®reported Q4 negative demand growth of -6.6 percent, compared to Q4 2007, and negative productivity growth of -10.4 percent compared to Q4 2007. As a result, the Peer Monitor Economic Index (PMI) fell to 42, the lowest point in the three-year history of the index.