Phase Forward Reports Inducement Grants under NASDAQ Marketplace Rule 5635(c)

Phase Forward (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, today announced that in connection with its April 22, 2009 acquisition of Waban Software, Inc. and in accordance with Nasdaq Marketplace Rule 5635(c), the company has granted shares of its common stock, in the form of stand-alone restricted stock units, or RSUs, as an inducement to the three principals and approximately 78 other employees of Waban.

Phase Forward awarded 48,048 RSUs to each of the former chief executive officer and president of Waban, Himanshu Oberoi, who is becoming vice president, Waban Software Group; Pankaj Tyagi, who is becoming vice president, development/chief technologist, Waban Software Group; and Pratap Malik, who is becoming vice president of sales, Waban Software Group. An additional 11 employees were also awarded an aggregate of 36,038 RSUs. The RSUs granted to the three principals and these 11 other employees vest as follows: 50 percent on the first anniversary date of the acquisition and 50 percent on the second anniversary date of the acquisition.

In addition to the awards described above, Phase Forward plans to grant an aggregate of 30,000 RSUs as an inducement to approximately 67 other individuals employed by Waban. These RSUs vest over a four-year period as follows: 50 percent on the second anniversary date of the acquisition, 25 percent on the third anniversary date of the acquisition and 25 percent on the fourth anniversary date of the acquisition. All RSUs granted in connection with the acquisition require that the respective recipient continue to be an employee of Phase Forward through each applicable vesting date and are subject to possible partial accelerated vesting under certain circumstances. The RSUs for the principals and other key employees have been approved by the Compensation Committee of Phase Forward’s Board of Directors with an effective date of April 22, 2009. The remainder of the RSUs have been approved preliminarily by the Compensation Committee of Phase Forward’s Board of Directors, subject to final approval following the closing and final determination of the allocation of the 30,000 RSUs among the employees.

About Phase Forward

Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. The company offers proven solutions for electronic data capture (InForm™), phase I clinic automation (LabPas™), clinical data management (Clintrial™), clinical trials signal detection (CTSD™), strategic pharmacovigilance (Empirica Signal™) and Signal Management, adverse event reporting (Empirica Trace™), applied data standards (WebSDM™),Web-integrated interactive response technologies (Clarix™), and clinical data analysis and reporting automation and compliance (Waban SCE/CDR, Waban SMS and Waban LIMS). In addition, the company provides services in the areas of application implementation, hosting and validation, data integration, business process optimization, safety data management and industry standards. 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 280 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, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at www.phaseforward.com.