PHRM.L Regulatory News (PHRM)

17 July 2013

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

Placing to raise £10.00 million (the "Placing")

Phorm (AIM: PHRM), the personalisation technology company, today announces that it has conditionally placed 208,333,334 new ordinary shares of nil par value in the capital of the Company (the "Placing Shares") at £0.048 per ordinary share (the "Placing Price") to raise £10.00 million before expenses.

Phorm intends to use the proceeds from the Placing for general working capital purposes as it continues to build its business in Turkey and works towards launching commercial operations in China. 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").

Application will be made for the Placing Shares to be admitted to trading on AIM and trading is expected to commence at 8.00am on 22 July 2013. The Placing Shares will represent approximately 49% of the enlarged issued share capital of the Company. Following the Placing, the total issued share capital of the Company will comprise 429,333,695 ordinary shares.

Related party transactions

Pursuant to the Placing, Meditor European Master Fund Limited ("Meditor") and Viollette Company Limited ("Viollette") are both investing £5,000,000 each in Placing Shares. The subscription for the Placing Shares will take Meditor's and Viollette's shareholding in the Company to 39.5% and 39.2% respectively. In the event that both Meditor and Viollette convert their previously issued Loan Notes, their shareholding in the Company will increase to 40.6% and 40.3% respectively.

Solely by virtue of Meditor and Viollette currently being substantial shareholders in the Company, Meditor's and Viollette's investment constitute related party transactions for the purposes of Rule 13 of the AIM Rules.

In light of the above, the directors of Phorm consider, having consulted with Liberum Capital Limited (the Company's nominated advisor), that the terms of Meditor's and Viollette's participations in the fundraising are fair and reasonable insofar as the Company's shareholders are concerned.

For Enquiries

Phorm Corporation Limited

Andrew Croxson (analysts & investors) +44 20 7297 2326

Liberum Capital +44 20 3100 2222

(Nominated Advisor and Joint Broker)

Chris Bowman

Richard Bootle

Mirabaud Securities LLP +44 20 7321 2508

(Joint Broker and Sole Bookrunner)

Jason Woollard

Peter Krens

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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 partners include leading Internet Service Providers (ISPs), Publishers, Ad Networks and Advertisers.

A Singapore incorporated company, Phorm (under a previous holding company) was admitted to the AIM market of the London Stock Exchange in 2004.

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