FOR IMMEDIATE RELEASE

Forrester Research Reports Third-Quarter Financial Results

Cambridge, Mass., October 29, 2008 . . . Forrester Research, Inc. (Nasdaq: FORR) today announced its financial results for the third quarter ended September 30, 2008.

Third-Quarter Financial Performance

• Total revenues were $59.5 million, compared with $51.1 million for the third quarter of last year.
• On a GAAP-reported basis, which reflects an effective tax rate of 37 percent, Forrester reported net income of $6.4 million or $0.27 per diluted share, compared with net income of $6.8 million, or $0.29 per diluted share for the same period last year.
• On a pro forma basis, which reflects a pro forma effective tax rate of 39 percent, net income was $7.4 million or $0.31 per diluted share for the third quarter of 2008. Pro forma net income excludes non-cash stock-based compensation of $1.3 million, amortization of acquisition-related intangible assets of $282,000, gains on non-marketable investments of $26,000, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $487,000. For the third quarter of 2007, pro forma net income was $6.7 million, or $0.28 per diluted share, which excludes non-cash stock-based compensation of $1.4 million, amortization of acquisition-related intangible assets of $293,000, gains on non-marketable investments of $98,000, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $808,000, and which reflects a pro forma effective tax rate of 39 percent.

Nine-Month Period Ended September 30, 2008 Financial Performance

• Total revenues were $178.0 million, compared with $153.6 million for the same period last year.
• On a GAAP-reported basis, which reflects an effective tax rate of 39 percent, Forrester reported net income of $20.1 million, or $0.85 per diluted share for the nine months ended September 30, 2008, compared with net income of $13.3 million or $0.56 per diluted share for the same period last year.
• On a pro forma basis, net income was $22.2 million or $0.94 per diluted share, for the nine months ended September 30, 2008. Pro forma net income excludes non-cash stock-based compensation of $4.0 million, amortization of acquisition-related intangible assets of $476,000, net gain 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 $1.1 million, and which reflects a pro forma effective tax rate of 39 percent. For the same period in 2007, pro forma net income was $18.8 million, or $0.79 per diluted share, which excludes non-cash stock-based compensation of $5.8 million, amortization of acquisition-related intangible assets of $978,000, net impairments from non-marketable investments of $1.7 million, and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $3.6 million, and which reflects a pro forma effective tax rate of 39 percent.

"Forrester's third-quarter financials were solid despite the economic slowdown," said George F. Colony, Forrester's chairman of the board and chief executive officer. "We achieved our revenue and profit goals and are cautiously optimistic about the rest of 2008. During the third quarter, we continued to add new clients while renewing and enriching our existing clients, an indication that our role-based strategy provides clients with sustained relevancy even during uncertain economic times."

A reconciliation of GAAP results to pro forma results may be found in the attached financial tables.

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

Fourth-Quarter 2008 (GAAP):

• Total revenues of approximately $64 million to $70 million.
• Operating margin of approximately 14 percent to 18 percent.
• Other income of approximately $1.5 million.
• An effective tax rate of approximately 39 percent.
• Diluted weighted average shares outstanding of approximately 23.7 million.
• Diluted earnings per share of approximately $0.30 to $0.35.

Fourth-Quarter 2008 (Pro Forma):

Pro forma financial guidance for the fourth quarter of 2008 excludes non-cash stock-based compensation expense of approximately $1.2 million to $1.5 million, amortization of acquisition-related intangible assets of approximately $500,000, costs related to the stock option investigation and restatement of the Company's historical financial statements of $100,000 to $400,000, and any gains or impairment charges related to non-marketable investments.

• Pro forma operating margin of approximately 18 percent to 21 percent.
• Pro forma effective tax rate of 39 percent.
• Pro forma diluted earnings per share of approximately $0.35 to $0.39.

Forrester is providing full-year 2008 guidance as follows:

Full-Year 2008 (GAAP):

• Total revenues of approximately $242 million to $248 million.
• Operating margin of approximately 14 percent to 16 percent.
• Other income of approximately $6.6 million.
• An effective tax rate of 39 percent.
• Diluted earnings per share of approximately $1.15 to $1.21.

Full-Year 2008 (Pro Forma):

Pro forma financial guidance for full-year 2008 excludes non-cash stock-based compensation expense of $5.1 million to $5.5 million, amortization of acquisition-related intangible assets of approximately $1 million, costs related to the stock option investigation and restatement of the Company's historical financial statements of $1.1 million to $1.5 million, as well as any gains or impairment charges related to marketable and non-marketable investments.

• Pro forma operating margin of approximately 17.5 percent to 18.5 percent.
• Pro forma diluted earnings per share of approximately $1.29 to $1.33.
• 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 guidance for the fourth 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 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 Q3 2008 Income Statement (PDF).

Download Q3 2008 Balance Sheet (PDF).

Download Q3 2008 Cash Flow (PDF).

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