Phase Forward Announces Share Repurchase Program

Phase Forward Incorporated (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, announced today that its board of directors has authorized the repurchase of up to $40.0 million of its common stock over the next twelve months. Under the program Phase Forward may repurchase shares from time to time at prevailing prices in the open market or in negotiated transactions off the market. The Company expects to use cash on hand and cash generated from future operations to fund repurchases of its common stock.

Bob Weiler, chairman and chief executive officer, said, "Phase Forward’s business momentum is solid and we are highly confident in the company’s long-term market position and product strategy. We have assembled the industry’s only true integrated clinical research suite, and now we are focused on driving margin expansion and capitalizing on our expanded market opportunity. With a sizeable cash position, expectations of continued profitability and cash flow, and the completion of multiple acquisitions, we believe a share repurchase program is an attractive use of capital and consistent with our strategy of using our strong balance sheet in ways that we believe can enhance long-term shareholder value.”

Phase Forward management will determine the timing and amount of any repurchase based on its evaluation of market conditions, business considerations and other factors. The program does not require the Company to repurchase any specific number of shares and may be extended, modified, suspended or discontinued at any time, at the Company’s discretion.

About Phase Forward

Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. Phase Forward’s products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 300 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, the U.S. Food and Drug Administration, GlaxoSmithKline, Harvard Clinical Research Institute, Merck Serono, Novartis, Novo Nordisk, PAREXEL International, Procter & Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Servier, SGS, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at www.phaseforward.com.

Cautionary Statement

Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, Phase Forward's current expectations and assumptions concerning management's forecast of financial performance, plans and expectations with respect to its new share repurchase program, its confidence in the continued growth of its business and its ongoing commitment to increase shareholder value. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond Phase Forward's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: future alternative uses for cash, future competing investment opportunities; general economic, business and market conditions; Phase Forward’s ability to maintain profitability; fluctuations in its operating results; and the volatility of the market price of its common stock. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Phase Forward undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by Phase Forward, see the disclosure contained in Phase Forward's public filings with the Securities and Exchange Commission including, without limitation, its most recent Annual Report on Form 10-K.