Phase Forward (PFWD)

Item 2.    Properties

        Our corporate headquarters are located at 880 Winter Street, Waltham, Massachusetts, where we lease approximately 126,588 square feet under three leases. These leases expire in February 2009. We also lease 14,960 square feet of office space in Maidenhead, England for our European headquarters under a lease that expires in May 2012, and we lease smaller offices in: Montpelier, Vermont; Paris, France; Sydney, Australia; Waterloo, Belgium; and Tokyo, Japan. We also lease individual offices in

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various locations to accommodate field sales personnel. We believe these facilities and additional or alternative space available to us will be adequate to meet our needs for the foreseeable future.

        On February 13, 2008, we entered into a lease (the "Lease"), to secure office space for our future corporate headquarters at 77 Fourth Avenue, Waltham, Massachusetts. The estimated commencement date for occupancy under the Lease is December 2008.

Item 2.    Properties

        Our corporate headquarters are located at 880 Winter Street, Waltham, Massachusetts, where we lease approximately 126,588 square feet under three leases. These
leases expire in February 2009. We also lease 14,960 square feet of office space in Maidenhead, England for our European headquarters under a lease that expires in May 2012, and we lease smaller
offices in: Montpelier, Vermont; Paris, France; Sydney, Australia; Waterloo, Belgium; and Tokyo, Japan. We also lease individual offices in

28

various
locations to accommodate field sales personnel. We believe these facilities and additional or alternative space available to us will be adequate to meet our needs for the foreseeable future.

        On
February 13, 2008, we entered into a lease (the "Lease"), to secure office space for our future corporate headquarters at 77 Fourth Avenue, Waltham, Massachusetts. The
estimated commencement date for occupancy under the Lease is December 2008.

Our corporate headquarters are located at 880 Winter Street, Waltham, Massachusetts, where we lease approximately 98,968 square feet. This lease expires on February 28, 2009. We also lease 14,960 square feet of office space in Maidenhead, England for our European headquarters under a lease that expires in May 2012, which includes a cancellation clause for May 2007, and we lease smaller offices in:  Paris, France; Sydney, Australia; Waterloo, Belgium; and Tokyo, Japan. We also lease individual offices in various locations to accommodate field sales personnel. We believe these facilities and additional or alternative space available to us will be adequate to meet our needs for the foreseeable future.