Press Releases

FOR IMMEDIATE RELEASE

Forrester Reorganizes Sales Force And Reduces Workforce In Response To Changing Market Demands

Company Expects To Meet Second-Quarter Guidance

Cambridge, Mass., July 12, 2001 . . . Forrester Research, Inc. (Nasdaq: FORR), a leading provider of research and analysis on emerging technologies, today announced a reorganization related to its sales force and the elimination of 111 jobs or approximately 15% of its workforce worldwide. The company also announced anticipated second-quarter 2001 financial results.

"Today's announcement is a two-pronged response to both the conditions and demands of the market," said George F. Colony, Forrester's chairman of the board and chief executive officer. "First, we're reorganizing our sales team around a new vertical focus that addresses the need for increased specialization in a more complex market. Second, the workforce reduction is a move driven by a slower economy. Reducing our staff for the first time in Forrester's 18-year history was a very difficult decision, and we deeply appreciate all that our employees, both past and present, have done in contributing to the company's success."

"We believe that our long-term market position and business model remain strong," Colony continued. "Technology change will continue to present significant business challenges for Global 3,500 companies. Forrester's charter of helping companies thrive on technology change represents a powerful and sustainable value proposition."

Anticipated Second-Quarter Results
For the second quarter ended June 30, 2001, Forrester anticipates revenues of approximately $46.0 million and diluted EPS of approximately $0.24 per share. These expected results are consistent with the company's previous guidance. For the current third quarter of 2001, the company expects to record a one-time charge in the range of $3.0 million to $4.0 million related to the reorganization and workforce reduction. On an annualized basis, associated savings are estimated to be approximately $15.0 million to $17.0 million.

The company expects to report its second-quarter results and plans to provide guidance for the second half of the year on July 18, 2001.

Conference Call Information
In conjunction with this news release, Forrester management will host a conference call for investors at 10 a.m. EDT today, July 12, 2001. The call will be broadcast live over the Internet. Investors interested in listening to the Webcast should log on to the "Investor Relations" section of the Forrester Web site, located at www.forrester.com, at least 15 minutes prior to the event's broadcast. A Webcast replay will be available from July 12, 2001, through July 18, 2001.

Forrester Research is a leading emerging-technology research firm, analyzing technology change and its impact on business, consumers, and society. Forrester's "Whole View" provides clients with a comprehensive set of research that reveals how technology change affects their customers, drives their business strategies, and dictates their investment in technology. Clients receive continuous research and analysis through Forrester eResearch® Reports, an array of Advisory Services, Assessment Tools, and topical events. Established in 1983, Forrester is headquartered in Cambridge, Mass., with North American Research Centers in San Francisco, Calif., and Toronto, Canada. Forrester's European Research Center is located in Amsterdam, Netherlands, its UK Research Centre is located in London, and its Research Center Deutschland is located in Frankfurt, Germany. Additional information about Forrester Research can be found at www.forrester.com.

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 expected second-quarter financial results, anticipated cost savings related to the reorganization, the expected charge related to corporate actions, the success of the sales force reorganization, and the future growth of the company. 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, market trends, and competition, the need to retain professional staff, possible variations in Forrester's quarterly operating results, Forrester's dependence on renewals of its membership-based research services and on key personnel, and risks associated with Forrester's ability to offer new products and services. Forrester Research 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.

Contact:

Karyl Levinson
Director, Public Relations
Forrester Research, Inc.
+1 617/613-6000
klevinson@forrester.com