Placing of Shares

7 July 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA

Phorm, Inc. ("Phorm" or the "Company")

Placing to raise £2 million (US$3 million) (the "Placing")

Phorm (AIM: PHRM and PHRX), the personalisation technology company, today announces that, through a placing undertaken by Mirabaud Securities LLP, on behalf of the Company, Phorm has conditionally placed with institutional investors 1,176,000 new common shares of $0.001 in the capital of the Company (the "Placing Shares") at £1.70 per share (the "Placing Price"), to raise approximately £2 million (US$3 million) before expenses. The Placing is conditional, inter alia, upon admission of the Placing Shares to trading on the AIM market of the London Stock Exchange plc ("AIM"). Canaccord Genuity Limited acted as financial adviser to Phorm on the Placing.

Phorm intends to use the proceeds from the Placing to continue the implementation of its service in Brazil and other future markets, and for general working capital purposes, as the Company continues its discussions with ISPs internationally.

Application has been made for the Placing Shares to be admitted to trading on AIM and trading is expected to commence at 8.00 am on 13 July 2010. The Placing shares will represent approximately 6.4% of the enlarged issued common share capital of the Company.

Following the Placing, the total issued share capital of the Company will comprise 18,479,907 common shares with a nominal value of $0.001 each, with each common share conveying the right to one vote of which 17,705,305 are trading on AIM under the ticker PHRM, the Reg S line and 774,602 are trading on AIM under the ticker PHRX, the unrestricted line. Phorm holds 45,000 PHRM shares in treasury.

Kent Ertugrul, CEO of Phorm said, "Following the successful launch in Brazil, I am pleased that shareholders have demonstrated their continuing support through this placing. We now intend to pursue the financial and operational strategies outlined in our recent full year results statement"

Enquiries:

Phorm, Inc.

Sarah Simon +44 20 7297 2433 (analysts and investors)

Alex Laity +44 20 7297 2710 (press)

Citigate Dewe Rogerson +44 20 7638 9571

Simon Rigby

Justin Griffiths

Canaccord Genuity Limited +44 20 7050 6500

(Nominated Adviser)

Mark Williams

Andrew Chubb