Commercial Launch in China

27 January 2014

Phorm Corporation Limited

("Phorm" or the "Company")

Commercial Launch in China and Global Operations Update

Phorm (AIM: PHRM), a leading internet personalisation technology company, is pleased to announce that it is now serving advertisements in the People's Republic of China and continues to make excellent progress with its other global operations.

Highlights:

· Launch of commercial operations in China serving paid advertisements

· Operational launch achieved with 5 further ISPs since TTNET in Turkey

· Daily global user numbers are now in excess of 20 million

· Inventory deals provide access to over 80 billion page impressions per month

· Market leading conversion rates

· Gross revenue for Q4 2013 up 125% on the previous quarter

Phorm announced on 3 October 2013 that it had launched operationally in China and had commenced a nation-wide opt-in process. The Company is now pleased to announce that it has commenced commercial operations in China and is serving advertisements on a paid basis.

Since launching with TTNET, a subsidiary of Türk Telecom Group, in Turkey in 2012, Phorm has now successfully launched its platform with 5 further ISPs. Accordingly, on a global basis, there are now over 20 million daily users on Phorm's platform.

The Company is also pleased to announce that it has now achieved access to over 80 billion monthly advertising impressions, on a global basis, from its publisher partners.

In terms of revenue generation, campaigns in Turkey are increasing in both size and volume. Gross consolidated revenue in Q4 2013 increased 125% quarter on quarter. Phorm has worked with all of the top 10 advertising agencies in Turkey running campaigns for over 300 local and global brands driven by market leading conversion rates.

The Company currently anticipates revenue to increase significantly as the growth in global user numbers accelerates with the expected launch of operations with new ISPs and in new potential markets.

As previously announced, the Company intends to provide the market with further updates on its key performance indicators (user numbers and revenue) on a quarterly basis which will be reported on a consolidated group basis in line with its current global activities.

-Ends-

For further information please contact:

Phorm Corporation Limited

Andy Croxson (analysts and investors) +44 (0) 203 397 6001

UK Investors

Mirabaud Securities LLP +44 20 7321 2508 (Broker)

Jason Woollard

Peter Krens

Strand Hanson Limited +44 20 7409 3494 (Nominated Adviser)

James Harris

Matthew Chandler

James Dance

US Investors

Lippert/Heilshorn and Associates +1 212 838 3777 (Investor Relations)

John Heilshorn

About Phorm

Phorm is a global personalisation technology company that makes content and advertising more relevant to the consumer. Phorm's innovative platform preserves user privacy and delivers a more interesting online experience.

Phorm's industry leading technology enables its ISP partners to offer a new type of online advertising platform and a free consumer internet content feature, ensuring more relevant advertisements and personalised content for opted-in users.

Phorm's advertising platform revolutionises current standards of online privacy, fully protecting the identity of consumers. Unlike virtually all other targeted advertising propositions, Phorm's solution is completely opt-in. Only those users consenting to the service are profiled and only ever on an anonymous basis.

Phorm's partners include leading Internet Service Providers (ISPs), Publishers, Advertising Networks and Advertisers.

Phorm, under a predecessor holding company, was admitted to the AIM market of the London Stock Exchange in 2004.

For more information, please visit: www.phorm.com