Phase Forward Incorporated Announces Pricing of Initial Public Offering

Business Wire, July 15, 2004

WALTHAM, Mass. -- Phase Forward Incorporated (NASDAQ: PFWD) announced today the initial public offering of 5,250,000 shares of its common stock at $7.50 per share, for aggregate net proceeds of approximately $34,600,000. All of the shares are being offered by Phase Forward. The shares are quoted on the Nasdaq National Market under the symbol "PFWD" beginning today. The underwriters have a 30-day option to purchase from the Company up to 787,500 additional shares of common stock to cover over-allotments, if any. The representatives for the several underwriters in the offering are Thomas Weisel Partners LLC, Piper Jaffray & Co., and Raymond James & Associates, Inc.

The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes, including sales and marketing and research and development expenditures, the repayment of certain indebtedness, and possible strategic acquisitions.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective on July 13, 2004. Copies of the final prospectus related to the offering may be obtained, when available, from Thomas Weisel Partners LLC, One Montgomery Street, Suite 3700, San Francisco, California 94104.

About Phase Forward

Phase Forward is a provider of integrated enterprise-level software products, services, and hosted solutions for use in the clinical trial component of its customers' global research and development initiatives. Phase Forward's customers include pharmaceutical, biotechnology, and medical device companies, as well as academic institutions, clinical research organizations, and other entities engaged in clinical trials. By automating essential elements of the clinical trial process, the Company believes its products allow its customers to accelerate the market introduction of new medical therapies and corresponding revenue, reduce overall research and development expenditures, enhance existing data quality control efforts, and reduce clinical and economic risk. Phase Forward believes its enterprise software and hosted solutions are the most widely adopted commercial data capture, data management, and adverse event reporting solutions in the clinical trial marketplace, having been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants and 300 therapeutic compounds and medical devices. Phase Forward's customer base of over 220 customers is comprised of the leading pharmaceutical, biotechnology, medical device, and clinical research organizations, including AstraZeneca Pharmaceuticals LP, Aventis S.A., Biogen Idec Inc., Eli Lilly and Company, GlaxoSmithKline plc, Guidant Corporation, Institut de Recherches Internationales Servier, Pfizer Canada, The Procter & Gamble Company, Sanofi-Synthelabo, Schering-Plough Research Institute, and Serono S.A.. Phase Forward is headquartered in Waltham, Massachusetts with offices in the United Kingdom, Australia, France, and Japan. Additional information about Phase Forward is available at www.phaseforward.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This press release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on assumptions, external factors and other risks that are detailed in the prospectus relating to this offering. Actual results could differ materially from these forward-looking statements.