FOR IMMEDIATE RELEASE

Forrester Research Reports First-Quarter Financial Results

Cambridge, Mass., April 30, 2008 . . . Forrester Research, Inc. (Nasdaq: FORR) today announced its first-quarter, ended March 31, 2008, financial results.

First-Quarter Financial Performance

• Total revenues were $55.0 million, compared with $47.3 million for the first quarter of last year.

• On a GAAP-reported basis, Forrester reported net income of $5.0 million or $0.21 per diluted share, compared with net income of $2.0 million, or $0.09 per diluted share, for the same period last year.

• On a pro forma basis, net income was $6.2 million, or $0.26 per diluted share, for the first quarter of 2008, which reflects a pro forma effective tax rate of 39 percent. Pro forma net income excludes non-cash stock-based compensation expense of $1.4 million, amortization of $171,000 of acquisition-related intangible assets, marketable and non-marketable investment gains of $497,000, and a net benefit of $68,000 related to the settlement of stock option-related payroll tax exposure offset by professional fees related to the stock option investigation and restatement of the Company's historical financial statements. This compares with pro forma net income of $4.8 million, or $0.20 per diluted share, for the same period in 2007, which excludes non-cash stock-based compensation expense of $2.6 million, amortization of $392,000 of acquisition-related intangible assets, non-marketable investment gains of $174,000, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $1.7 million, and which reflects a pro forma effective tax rate of 39 percent.

A reconciliation of GAAP results to pro forma results may be found in the attached financial tables. Forrester believes that pro forma financial results provide investors with consistent and comparable information of Forrester's ongoing business. Forrester uses pro forma financial information to manage its business, including use of pro forma financial results as the basis for setting targets for various compensation programs.

"Our first-quarter results demonstrate a positive start to 2008," said George F. Colony, Forrester's chairman of the board and chief executive officer. "We fell squarely in the range of our revenue and pro forma EPS targets, and deferred revenue increased nicely quarter over quarter and year over year, which should bode well for the remainder of 2008. During the first quarter, we introduced a new metric to gauge the success and penetration of the role-based strategy we launched last year. Roles per client measures the average number of roles Forrester serves in each of its client companies. As of the first quarter, this metric stood at 3.2."

Forrester is providing second-quarter 2008 financial guidance as follows:

Second-Quarter 2008 (GAAP):

• Total revenues of approximately $62.0 million to $64.5 million

• Operating margin of approximately 15 percent to 17 percent

• Other income of approximately $1.8 million

• An effective tax rate of 39 percent to 41 percent

• Diluted earnings per share of approximately $0.26 to $0.32

Second-Quarter 2008 (Pro Forma):

Pro forma financial guidance for the second quarter of 2008 excludes amortization of acquisition-related intangible assets of approximately $23,000, non-cash stock-based compensation expense of $1.2 million to $1.6 million, costs related to the stock option investigation and restatement of the Company's historical financial statements of approximately $100,000, and any gains or impairment charges related to marketable and non-marketable investments.

• Pro forma operating margin of approximately 18 percent to 19 percent

• Pro forma effective tax rate of 39 percent

• Pro forma diluted earnings per share of approximately $0.32 to $0.36

Forrester is providing full-year 2008 guidance as follows:

Full-Year 2008 (GAAP):

• Total revenues of approximately $240 million to $248 million

• Operating margin of approximately 14 percent to 16 percent

• Other income of approximately $8 million

• An effective tax rate of 41 percent

• Diluted earnings per share of approximately $1.14 to $ 1.24

Full-Year 2008 (Pro Forma):

Pro forma financial guidance for full-year 2008 excludes non-cash stock-based compensation expense of $5.0 million to $6.0 million, amortization of acquisition-related intangible assets of approximately $250,000, costs related to the stock option investigation and restatement of the Company's historical financial statements of $200,000 to $500,000, and gains or impairment charges related to marketable and non-marketable investments.

• Pro forma operating margin of approximately 17 percent to 18 percent

• Pro forma diluted earnings per share of approximately $1.28 to $1.36

• An effective tax rate of 39 percent

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Forrester's financial and operating targets for the second quarter of and full-year 2008. These statements are based on Forrester's current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, Forrester's ability to anticipate business and economic conditions, technology spending, market trends, competition, industry consolidation, the ability to attract and retain professional staff, possible variations in Forrester's quarterly operating results, risks associated with Forrester's ability to offer new products and services, and Forrester's dependence on renewals of its membership-based research services and on key personnel. Forrester undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to Forrester's reports and filings with the Securities and Exchange Commission.

The consolidated statements of income, consolidated balance sheets, and consolidated statements of cash flows are attached.

About Forrester Research

Forrester Research, Inc. (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. For more than 24 years, Forrester has been making leaders successful every day through its proprietary research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

Contact:

Karyl Levinson
Vice President, Corporate Communications
Forrester Research, Inc.
+ 1 617/613-6262
press@forrester.com

Michael A. Doyle
Chief Financial Officer
Forrester Research, Inc.
+ 1 617/613-6181
mdoyle@forrester.com

Download Q1 2008 Income Statement (PDF).

Download Q1 2008 Cash Flow (PDF).

Download Q1 2008 Balance Sheet (PDF).

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