Phase Forward, AAIPharma Enter Alliance Agreement

Wilmington, N.C., August 29, 2007 -- Phase Forward (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, today announced a multi-year alliance agreement with AAIPharma, Inc., a leading global contract research organization (CRO). Under the terms of the contract, AAIPharma will offer services centered around two Phase Forward products as part of its solution set: the InForm(TM) Integrated Trial Management (ITM) electronic data capture (EDC) system and the Clintrial(TM) clinical data management product that can be used to collect, manage and review electronically captured and paper-based study data.

A rapidly growing, full-service global CRO with operations throughout the United States, Canada, Western and Eastern Europe and South America, AAIPharma selected the InForm system and the Clintrial product after completing a rigorous industry product review. The company decided on Phase Forward for its global reach and stability, and industry-proven product offerings, as well as its innovative approach to CRO partnership. In addition, AAIPharma was drawn to the products' straightforward implementation requirements and intuitive interface, requiring very little training post-deployment.

"After an intense review process we felt Phase Forward's dedicated services organization, combined with its trusted product set, made our decision an easy one," said Anne Wiles, senior vice president, Data Systems and Processes, AAIPharma. "The company's flexible partner program will allow us to expand and customize our offerings at a pace that best suits our growing organization, as well as our clients. As EDC adoption continues, it is important that we offer the technology that sponsors view as an industry standard, while also supporting those clients requiring a solution that supports both electronic and paper-based trials. Phase Forward remains the vendor of choice for organizations at every stage of EDC implementation."

"CROs continue to play a critical role in bringing the efficiencies of electronic data capture and management to clinical trials, and will ultimately help move the industry further along the adoption continuum over the next several years," said Bob Weiler, CEO and president, Phase Forward. "Collaboratively, we believe we can help biopharmaceutical and medical device firms realize the full benefits of EDC, and we look forward to working with AAIPharma in pursuing this goal."

About AAIPharma

AAIPharma Inc. is a global provider of product development and support services to the pharmaceutical, biotechnology and medical device industries. From a single test through a range of integrated service offerings, we create value to an industry in search of productivity and innovation. For more information, please visit www.aaipharma.com.

About Phase Forward

Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. The company offers proven solutions for electronic data capture (InForm(TM)), clinical data management (Clintrial(TM)), clinical trials signal detection (CTSD(TM)), strategic pharmacovigilance (WebVDME(TM) and Signal Management), adverse event reporting (Clintrace(TM)) and applied data standards (WebSDM(TM)). In addition, the company provides services in the areas of application implementation, hosting and validation, data integration, business process optimization, safety data management and industry standards. Phase Forward's products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 250 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, the U.S. Food and Drug Administration, GlaxoSmithKline, Harvard Clinical Research Institute, Merck Serono, Novartis, Novo Nordisk, PAREXEL International, Procter & Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Servier, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at www.phaseforward.com.