Phase Forward and AG Mednet Form Alliance

June 23, 2008

Company News Release

New Offering Will Provide Capabilities to Transport, Track and Manage the Status of Clinical Trial Images from within the InForm System, Reducing the Time and Cost Associated with Medical Image Transport

Phase Forward and AG Mednet Form Alliance to Develop Integrated Imaging Offering

New Offering Will Provide Capabilities to Transport, Track and Manage the Status of Clinical Trial Images from within the InForm™ ITM System, Reducing the Time and Cost Associated with Medical Image Transport


DIA's 44th Annual Meeting
BOSTON--(BUSINESS WIRE <http://www.businesswire.com/> )--Phase Forward (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, today announced it has formed an alliance with AG Mednet, a clinical trials imaging network, to integrate Phase Forward’s InForm integrated trial management (ITM) system and AG Mednet’s imaging transport network. The integrated offering will enable clinical trial patient images to be tracked and managed from within the InForm ITM system. The joint solution will help streamline the process of transporting images between clinical sites and central reviewers, and will enable trial sponsors to access the status of patient images in real-time.

Today, clinical trial images including radiographs, magnetic resonance imaging (MRI), computerized axial tomography (CAT) scans and ultrasounds frequently are burned onto a compact disc (CD) after patient visits, and physically mailed to a central reviewer – typically a core laboratory – for analysis. This expensive, time-consuming and inefficient process burdens clinical trial productivity. The alliance announced today is intended to provide an integrated offering for sponsors that will enable clinical trial investigators to send images electronically in a more expeditious and secure manner to core laboratories. The joint offering will also give core laboratories the ability to enter patient imaging data directly into the InForm system, eliminating a costly and time-consuming reconciliation step.

“Clinical trial sponsors need a way to transport patient images more quickly and efficiently for less cost, and a real-time capability to track and manage these images,” said Phase Forward Vice President, Corporate Development and Marketing Martin Young. “The integration of our InForm ITM platform with AG Mednet’s imaging transport network will enable us to address this critical need in a very direct way.”

“The alliance we’re announcing today underscores the complementary nature of our clinical trials imaging network and Phase Forward’s electronic data capture solution,” said AG Mednet President and CEO Abraham Gutman. “We believe an integrated offering will enable clinical trial sponsors to reach new levels of efficiency in the image review process.”

In addition to reducing the high costs associated with physically shipping CDs, with the joint Phase Forward-AG Mednet offering the imaging review process will benefit from more efficient, less manual image management workflows. The goal is to provide earlier insights into patient imaging data as well as enhanced tracking and audit capabilities. Furthermore, this integrated electronic image transport solution presents a comprehensive, detailed method for ensuring compliance with regulatory and security requirements, reducing the many iterative and manual steps required today.

About AG Mednet

AG Mednet is a global diagnostic imaging network. Pharmaceutical, biotech and medical device companies, core labs and clinical research organizations (CROs) utilizing imaging technology as part of their trial protocol rely on AG Mednet’s automated system to enable the secure electronic transfer of cases from hundreds of locations, enhancing site compliance while providing detailed reporting necessary to meet the most stringent regulatory requirements. Hospitals and Teleradiology providers requiring faster, more efficient, more flexible and more scalable image transport from their clients to their readers can rely on AG Mednet’s dedicated, carrier-class network to route uncompressed studies of all types and sizes, as well as associated clinical data securely and efficiently through its robust fiber-optic network infrastructure. AG Mednet is headquartered in Boston and serves the global medical community. For more information call 1-888-9AGMEDNET or visit www.agmednet.com <http://www.agmednet.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 (InFormTM), phase I clinic automation (LabPasTM), clinical data management (ClintrialTM), clinical trials signal detection (CTSDTM), strategic pharmacovigilance (Empirica SignalTM) and Signal Management, adverse event reporting (Empirica TraceTM) and applied data standards (WebSDMTM). 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 280 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 <http://www.phaseforward.com> .

Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, Phase Forward's expectations concerning the integration of its technologies with those of another company, the performance and acceptance of Phase Forward’s products and the combined offering, and the benefits to customers from such combined offering. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond Phase Forward's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, Phase Forward's inability to convince current and potential customers to order its products and services, the failure of customers to realize benefits from the use of these products and services, changes in complementary and integrated technologies, changes in regulatory requirements applicable to Phase Forward’s customers and the manner in which they conduct business and competition. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Phase Forward undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by Phase Forward, see the disclosure contained in Phase Forward's public filings with the Securities and Exchange Commission including, without limitation, its most recent Quarterly Report on Form 10-K.