Phase Forward Announces $40M Share Repurchase Program

WALTHAM, Mass. -- 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.