Turkish Operations Update

28 June 2013

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

Turkish Operations Update

Commercial scale reached, revenue generation has commenced

Phorm (AIM: PHRM), a leading internet personalization technology company, announces today that it has reached sufficient scale in Turkey to start commercial operations and revenue generation has commenced.

·; Several million opt-in responses received from users via improved invitation process with over 600,000 users active on daily basis

·; Signed advertising network and publisher contracts provide over 1 billion requests per month

·; Over 1 million advertising impressions served daily

·; Text advertising products launched to compete with Google and other search advertisers

·; Advertising performance, initial results very promising with average click-through rates up to 300% higher than standard banner advertising

Phorm previously announced in December 2012 that it welcomed the decision of the Turkish regulator, the BTK, to introduce new guidelines governing the approval process for behaviourally targeted advertising solutions in Turkey. The Company introduced an improved invitation process based on these guidelines and is very pleased to announce that it has received several million opt-in requests from users and is now at commercial scale.

Unlike many other targeted advertising propositions, Phorm's solution is completely opt-in and no personally identifiable information is used. Phorm looks forward to other targeted advertising providers in Turkey meeting the BTK's world-leading standards, thus reducing unfair competition in the market while increasing consumer protection.

Phorm is also pleased to announce that it has signed a number of major agreements with publishers and advertising networks representing over 100 websites in Turkey. These websites are progressively marking-up their pages to send advertising requests to Phorm's platform in Turkey. The Company expects to receive over 1 billion advertising requests per month from July and has already received an average of 30 million requests per day over the last 10 days.

Phorm is also delighted to announce that it has formally launched its text advertising products in Turkey. This allows advertisers to target advertising at the key-word level without using a search engine. The initial results are very exciting - click through rates range from between 1.8 and 4.0 times higher than standard banner advertising and advertisers are currently converting test campaigns into commercial campaigns.

The Company is now working with its advertiser and advertising network partners to build revenues 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