PHRM.L Regulatory News (PHRM)

22nd September 2010

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

Update on Commercial Deployment in Brazil

Phorm (AIM: PHRM and PHRX), the internet personalisation technology company, is pleased to provide the market with an update of its progress in Brazil.

As disclosed on June 30th, we have already invoiced our first revenues. Our user base is now scaling in Oi, and with continued strong demand from our advertiser partners, we are pleased to announce that we have served our first targeted advertisements to opted-in users. In addition, we can confirm that we have signed further agreements for advertising inventory with a number of large publishers, and work continues on an ongoing basis to extend the network of partner websites.

In addition, following Oi's commercial deployment, Telefonica is now launching a trial of Navegador, the local name for our internet personalisation product. Telefonica will evaluate the proposition in a portion of its network before deciding to roll-out the service across its user base.

The move towards full-scale commercial activities has been driven by the Phorm Brazil team, supplemented by key personnel from our headquarters in London. We are pleased to announce that we have hired Leonardo Cotsifis as MD of Phorm Brazil and this now completes the team required for commercial launch. Leo was formerly at Microsoft Brazil, from 1998-2010, where he was Business Operations and Sales Excellence Lead at Microsoft Advertising.

Enhancing our efforts in Brazil, we are also pleased to announce the appointment of Caio Tulio Costa as Chairman of Phorm Brazil. Caio worked for 21 years for leading Brazilian newspaper Folha de S. Paulo, where he held the position of managing editor. He was an early proponent of the Internet whilst at Folha de S. Paulo, and in 1995 he was one of the founders of the web business that would later become Universo Online (UOL), now Brazil's leading portal. He left UOL at the end of 2002. In 2006 he took over as the President of Brazil Telecom's Internet business, and remained there until early 2009 when Brazil Telecom was acquired by Oi.

With these key hires completing the local team, we now have full operational capability, as well as the management bandwidth to pursue other geographies where considerable progress has already been made.

Enquiries:

Phorm, Inc

Andy Croxson: +44 20 7297 2326 (analysts and investors)

Alex Laity: +44 20 7297 2710 (press)

Canaccord Genuity

(Nominated Advisor)

Mark Williams: +44 20 7050 6500

Andrew Chubb: +44 20 7050 6500

Citigate Dewe Rogerson

Justin Griffiths: +44 20 7638 9571 (press)

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