Exact solution of quantum gravity in 1 + 1 dimensions

Quantum gravity in 1 + 1 dimensions, with zero cosmological constant is formulated, including contributions from all possible topologies. The spectrum and the S-matrix are calculated exactly. Pure gravity is found to exist in a disordered phase, dominated by topologically non-trivial configurations. In the presence of fermionic matter fields, space-time can undergo a phase transition to an ordered phase.