Operations Update

27 September 2013

Phorm Corporation Limited ("Phorm" or the "Company")

Operations Update

Revenue and Key Performance Indicators Show Strong Growth

Phorm (AIM: PHRM), a leading internet personalization technology company, announces today that it is seeing strong sustained growth in revenue and other key performance indicators.

· 3.6 million monthly opted-in users

· 1.2 million active on daily basis, 100% increase from June

· Advertising network and publisher partners provide over 1.2 billion requests per month

· Over 66 million advertising impressions served in August

· Advertising products demonstrating excellent performance

· Increasing evidence of market-leading conversion rates

Phorm previously announced on 28 June that it had reached commercial scale in Turkey such that it was delivering advertising campaigns and that revenue generation had commenced. Despite market activity being at seasonal lows, considerable commercial traction has been achieved over recent months and the Company has seen considerable growth in revenues and other Key Performance Indicators including user numbers, advertising requests and advertising impressions served. In addition, Phorm has received very exciting feedback from its customers, with respect to conversion rates, which demonstrates that its platform has the ability to compete effectively in text advertising.

Phorm is pleased to announce that the number of daily active users is now 1.2 million, a 100% increase on the number previously announced on 28 June and the rate of growth is increasing. Phorm has now conclusively demonstrated the viability of an opt-in model and is pleased that it continues to lead the market in terms of consumer choice and protection.

Phorm has continued to sign and build its publisher network. In June, the Company announced that it was receiving an average of 30 million requests per day, this has now grown to over 40 million requests per day. In August the Company received a total of over 1.2 billion advertising requests.

The number of advertising impressions served by the Company is also continuing to grow. In June the Company served 39 million, this has grown by over 70% to 67 million by the end of August. Phorm is able to serve both display and text advertising, which allows advertisers to target advertising at the key-word level without using a search engine.

Phorm is also delighted to announce that it has received some excellent feedback from its advertising partners with respect to conversion rates. Conversion is key to ensuring the long-term success of the platform as it is the measure of the proportion of clicks that result in the user action desired by the advertiser; for example to buy a product or fill in an application form. Phorm has demonstrated across a range of sectors and campaigns that its targeted advertising can result in very high conversion rates. In recent campaigns, Phorm has achieved conversion rates of up to 40%.

The Company is now focused on building its revenue based on these excellent results and will update the market further in due course.

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Contact

Phorm Corporation Limited

Andy Croxson (analysts & investors) +44 207 297 2067

Liberum Capital +44 20 3100 2222 (Nominated Advisor and Joint Broker)

Chris Bowman

Richard Bootle

Mirabaud Securities LLP +44 20 7321 2508 (Joint Broker)

Jason Woollard

Peter Krens

About Phorm

Phorm is a global personalization 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 personalized content for opted-in users.

Phorm's advertising platform revolutionizes 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