PHRM.L Regulatory News (PHRM)

29 July 2015

Phorm Corporation Limited

("Phorm" or the "Company")

Update re Board Changes

Phorm (AIM: PHRM), a leading internet personalisation technology company, is pleased to confirm that, further to its announcement of 15 July 2015, Mr Timothy Todd Smith has formally been appointed to the Board as Chief Executive Officer with immediate effect.

As announced on 15 July 2015, Mr Lex Fenwick, assumed the role of interim Executive Chairman, pending Mr Smith's formal appointment. The Company is pleased to announce that Mr Fenwick has now agreed to act as Non-Executive Chairman with immediate effect.

As announced on 15 July 2015, the Company entered into a settlement agreement with each of Mr Ertugrul and Mr Croxson (the "Settlement Agreements"), whereby they are both entitled to receive, inter alia, a share based payment (the "Share Payment"). Pursuant to the Share Payments, the Company has now issued Mr Ertugrul and Mr Croxson with 10 million and 4 million new ordinary shares of nil par value in the capital of Phorm respectively (the "Settlement Shares").

Neither Mr Ertugrul nor Mr Croxson shall be entitled to dispose of more than 25 per cent. of the Settlement Shares in the two month period following their date of issue and no more than 25 per cent. of the Shares in each of the three months thereafter. Phorm has the right of first refusal to buy back such Settlement Shares if either Mr Ertugrul or Mr Croxson decide to sell.

Accordingly, application will be made to the London Stock Exchange plc for the Settlement Shares to be admitted to trading on AIM. It is expected that admission of the Settlement Shares will become effective and that dealings in the Settlement Shares will commence at 8.00 a.m. on 4 August 2015.

Following admission of the Settlement Shares, the total issued ordinary share capital of the Company will comprise 857,810,775 ordinary shares. The Settlement Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares.

Additional information on Mr Timothy Smith

The following additional information is provided in accordance with paragraph (g) of Schedule Two to the AIM Rules for Companies:

Timothy Todd Smith (age 51)

There is no other information that is required to be disclosed pursuant to paragraph (g) of Schedule Two to the AIM Rules for Companies.

-Ends-

For further information please contact:

Phorm Corporation Limited

Timothy Smith (Chief Executive Officer) +44 20 3397 6001

UK Investors

Mirabaud Securities LLP (Broker) +44 20 7321 2508

Jason Woollard

Peter Krens

Strand Hanson Limited (Nominated Adviser) +44 20 7409 3494

James Harris

Matthew Chandler

James Dance

US Investors

Lippert/Heilshorn and Associates (Investor Relations) +1 212 838 3777

John Heilshorn

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 industry leading technology enables its Internet Service Provider ("ISP") partners to offer a new type of online advertising platform and a free consumer internet content feature, ensuring more relevant advertisements and personalised content for opted-in users.

Phorm's advertising platform revolutionises current standards of online privacy, fully protecting the identity of consumers. 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 ISPs, Publishers, Advertising Networks and Advertisers.

Phorm, under a predecessor holding company, was admitted to trading on the AIM market of the London Stock Exchange in 2004.

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