FOR IMMEDIATE RELEASE

Forrester Research Reports Second-Quarter Financial Results
Company Also Announces Acquisition Of JupiterResearch

Cambridge, Mass., July 31, 2008 . . . Forrester Research, Inc. (Nasdaq: FORR) today announced its second-quarter, ended June 30, 2008, financial results.

Second-Quarter Financial Performance

• Total revenues were $63.5 million, compared with $55.2 million for the second quarter of last year.
• On a GAAP-reported basis, which reflects an effective tax rate of 37 percent, Forrester reported net income of $8.6 million or $0.37 per diluted share, compared with net income of $4.5 million, or $0.19 per diluted share for the same period last year.
• On a pro forma basis, net income was $8.6 million, or $0.37 per diluted share, for the second quarter of 2008, which excludes non-cash stock-based compensation of $1.3 million, amortization of $23,000 of acquisition-related intangible assets, net gains on marketable and non-marketable investments of $1.6 million, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $666,000, and which reflects a pro forma effective tax rate of 39 percent. This compares with pro forma net income of $7.3 million, or $0.31 per diluted share, for the same period in 2007, which excludes non-cash stock-based compensation of $1.7 million, amortization of $293,000 of acquisition-related intangible assets, net impairments from non-marketable investments of $2.0 million, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $1.1 million, and which reflects a pro forma effective tax rate of 39 percent.

Six-Month Period Ended June 30, 2008 Financial Performance

• Total revenues were $118.4 million, compared with $102.5 million for the same period last year.
• On a GAAP-reported basis, which reflects an effective tax rate of 40 percent, Forrester reported net income of $13.7 million, or $0.58 per diluted share, for the six months ended June 30, 2008, compared with net income of $6.5 million, or $0.27 per diluted share, for the same period last year.
• On a pro forma basis, net income was $14.8 million, or $0.63 per diluted share, for the six months ended June 30, 2008, which excludes non-cash stock-based compensation of $2.7 million, amortization of acquisition-related intangible assets of $194,000, net gains on marketable and non-marketable investments of $2.1 million, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $597,000, and which reflects a pro forma effective tax rate of 39 percent. This compares with pro forma net income of $12.1 million, or $0.51 per diluted share, for the same period in 2007, which excludes non-cash stock-based compensation of $4.3 million, amortization of $685,000 of acquisition-related intangible assets, net impairments from non-marketable investments of $1.8 million, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $2.8 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's second-quarter financial performance met our expectations," said George F. Colony, Forrester's chairman of the board and chief executive officer. "We performed particularly well in revenue growth, deferred revenue growth, and improved margin. The percentage of our syndicated business is moving in the right direction, and our role-based strategy continues to produce positive results. Overall, we are pleased with our performance in the second quarter and the first half of the year."

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

Third-Quarter 2008 (GAAP):

• Total revenues of approximately $59.0 million to $62.0 million
• Operating margin of approximately 10 percent to 16 percent
• Other income of approximately $1.6 million
• An effective tax rate of approximately 40 percent
• Diluted weighted average shares outstanding of approximately 23.6 million
• Diluted earnings per share of approximately $0.21 to $0.27

Third-Quarter 2008 (Pro Forma):

Pro forma financial guidance for the third quarter of 2008 excludes non-cash stock-based compensation expense of approximately $1.2 million to $1.5 million, amortization of intangible assets of $500,000 to $1.0 million, any gains or impairment charges related to marketable and non-marketable investments and any expenses related to the stock option investigation and restatement of the company's historical financial statements.

• Pro forma operating margin of approximately 15 percent to 17 percent
• Pro forma effective tax rate of 39 percent
• Pro forma diluted earnings per share of approximately $0.27 to $0.31

Forrester is revising full-year 2008 guidance as follows:

Full-Year 2008 (GAAP):

• Total revenues of approximately $246 million to $252 million
• Operating margin of approximately 13 percent to 15 percent
• Other income of approximately $7 million
• An effective tax rate of 40 percent
• Diluted earnings per share of approximately $1.10 to $1.20

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 $1.0 million to $2.0 million, costs related to the stock option investigation and restatement of the Company's historical financial statements of $600,000 to $1.0 million, 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 $1.34
• An effective tax rate of 39 percent

Forrester Acquires JupiterResearch

In a press release issued earlier today, Forrester announced the acquisition of JupiterResearch, LLC., and its parent company, JUPR Holdings, Inc., from MCG Capital Corporation for $23 million in cash, plus assumed liabilities, subject to post-closing adjustments, in a strategic purchase that complements Forrester's syndicated business model. JupiterResearch has 83 employees and 2007 revenues of approximately $14 million. Forrester, with 2007 revenues of $212 million, now has more than 1,000 employees. JupiterResearch joins Forrester's Marketing & Strategy Client Group, which contributed $46.4 million to Forrester's total revenue in 2007.

Like Forrester, JupiterResearch provides business professionals with syndicated research, analysis, and advice backed by proprietary data. JupiterResearch has a substantive and growing library of syndicated research and strong consumer data and excels at market forecasting.

In announcing the acquisition, Colony said, "Forrester's Marketing & Strategy business is a key differentiator in the marketplace. JupiterResearch enhances our existing role-based strategy and offering to make Forrester's Marketing & Strategy clients more successful every day."

About Forrester Research

Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, consumer insight, consulting, events, and peer-to-peer executive programs. For more than 25 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. 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
investor@forrester.com

Download Q2 2008 Income Statement (PDF).

Download Q2 2008 Balance Sheet (PDF).

Download Q2 2008 Cash Flow (PDF).

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