FOR IMMEDIATE RELEASE

Forrester Research Reports Third-Quarter Financial Results

Cambridge, Mass., October 29, 2009 . . . Forrester Research, Inc. (Nasdaq: FORR) today announced its third-quarter ended September 30, 2009 financial results.

Third-Quarter Financial Performance

• Total revenues were $53.9 million, compared with $59.5 million for the third quarter of last year.
• On a GAAP-reported basis, Forrester reported net income of $4.3 million, or $0.19 per diluted share, compared with net income of $6.4 million, or $0.27 per diluted share, for the same period last year.
• On a pro forma basis, net income was $6.2 million, or $0.27 per diluted share, for the third quarter of 2009, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income excludes stock-based compensation of $1.4 million, amortization of $439,000 of acquisition-related intangible assets, and impairments of non-marketable investments of $732,000. This compares with pro forma net income of $7.4 million, or $0.31 per diluted share, for the same period in 2008, which reflects a pro forma effective tax rate of 39 percent. Pro forma net income for the third quarter of 2008 excludes stock-based compensation of $1.3 million, amortization of $282,000 of acquisition-related intangible assets, net marketable and non-marketable investment gains of $26,000 and expenses related to the stock option investigation and restatement of the Company's historical financial statements of $487,000.

"Given the sluggish economy, we are pleased with Forrester's third-quarter performance," said George F. Colony, Forrester's chairman of the board and chief executive officer. "Deferred revenue was down at September 30, 2009, as expected; but client and dollar retention increased from last quarter, and our pro forma net income indicates that our expense control efforts are working. Overall, our results exceeded our guidance. As a result we are tightening our revenue range and raising our pro forma operating margin and diluted earnings per share guidance for the full year of 2009."

Nine-Month Period Ended September 30, 2009, Financial Performance

• Total revenues were $171.9 million, compared with $178.0 million for the same period last year.
• On a GAAP-reported basis, Forrester reported net income of $13.1 million, or $0.57 per diluted share for the nine months ended September 30, 2009, compared with net income of $20.1 million or $0.85 per diluted share for the same period last year.
• On a pro forma basis, net income was $21.2 million or $0.92 per diluted share, for the nine months ended September 30, 2009, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income excludes stock-based compensation of $4.9 million, amortization of $1.8 million of acquisition-related intangible assets, $3.1 million of reorganization costs, and impairments of non-marketable investments of $1.7 million. This compares with pro forma net income of $22.2 million, or $0.94 per diluted share, for the same period in 2008, which reflects a pro forma effective tax rate of 39 percent. Pro forma net income for the nine-month period ended September 30, 2008 excludes stock-based compensation of $4.0 million, amortization of $476,000 of acquisition-related intangible assets, net marketable and non-marketable investment gains 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.

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

Forrester is providing fourth-quarter 2009 financial guidance as follows:

Fourth-Quarter 2009 (GAAP):

• Total revenues of approximately $58 million to $61 million.
• Operating margin of approximately 13% to 15%.
• Other income of approximately $500,000.
• An effective tax rate of 40 percent.
• Diluted earnings per share of approximately $0.21 to $0.26.

Fourth-Quarter 2009 (Pro Forma):

Pro forma financial guidance for the fourth quarter of 2009 excludes stock based compensation of $1.2 million to $1.4 million, amortization of acquisition-related intangible assets of approximately $300,000, and any gains or impairment charges related to marketable and non-marketable investments.

• Pro forma operating margin of approximately 16% to 18%.
• Pro forma effective tax rate of 40%.
• Pro forma diluted earnings per share of approximately $0.26 to $0.30.

Forrester is providing full-year 2009 guidance as follows:

Full-Year 2009 (GAAP):

• Total revenues of approximately $230 million to $233 million.
• Operating margin of approximately 13% to 14%.
• Other income of approximately $2.7 million.
• An effective tax rate of 44 percent.
• Diluted earnings per share of approximately $0.80 to $0.87.

Full-Year 2009 (Pro Forma):

Pro forma financial guidance for full-year 2009 excludes stock-based compensation expense of $6.1 million to $6.3 million, reorganization costs of $3.1 million, amortization of acquisition-related intangible assets of approximately $2.1 million, and any gains or impairment charges related to marketable and non-marketable investments.

• Pro forma operating margin of approximately 18% to 19%.
• Pro forma effective tax rate of 40 percent.
• Pro forma diluted earnings per share of approximately $1.18 to $ 1.22.

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 fourth quarter of and full-year 2009. 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 respond to business and economic conditions, particularly in light of the global economic environment, technology spending, market trends, competition, industry consolidation, the ability to attract and retain professional staff, possible variations in Forrester's quarterly operating results, any cost savings related to reductions in force and associated actions, 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 20 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 26 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

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