Memorandum of Understanding with China Telecom

10 March 2014

Phorm Corporation Limited

("Phorm" or the "Company")

Memorandum of Understanding signed with China Telecom

Phorm (AIM: PHRM), a leading internet personalisation technology company, is pleased to announce that it has signed a Memorandum of Understanding ("MoU") with China Telecom Corporation Limited ("China Telecom") and certain of its associated group entities to become its preferred strategic partner in the field of 'Big Data' technology and advertising operations.

Highlights:

· Memorandum of Understanding is valid for three years

· Establishes Phorm as China Telecom's strategic partner for 'Big Data' and advertising

· Agreement covers a wide-range of proposed initiatives

· Reinforces Phorm's continued progress in China

Phorm has signed a three year MoU with China Telecom, the world's largest wireline telecommunications, code division multiple access (CDMA) mobile network and broadband Internet services provider.

This agreement further reinforces the progress that the Company has made since the launch of its commercial operations with three Internet Service Providers ("ISPs") in the People's Republic of China as announced on 27 January 2014. Phorm is continuing to build its commercial operations and expects to launch with further ISPs in China later this year. The China Telecom group has operations in 31 Chinese provinces and over 100 million broadband customers.

Phorm is delighted to have been selected to become China Telecom's preferred strategic partner, not only for advertising, but also for its 'Big Data' initiatives and looks forward to continuing to work closely with China Telecom on a range of innovative products and services.

-Ends-

For further information please contact:

Phorm Corporation Limited

Andy Croxson (analysts and investors) +44 (0) 203 397 6001

UK Investors

Mirabaud Securities LLP +44 20 7321 2508 (Broker)

Jason Woollard

Peter Krens

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

James Harris

Matthew Chandler

James Dance

US Investors

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

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 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. 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

About China Telecom

China Telecom Corporation Limited is an integrated information full services operator and the world's largest wireline telecommunications, CDMA mobile network and broadband Internet services provider, providing basic telecommunications services such as wireline telecommunications services and mobile telecommunications services, and value-added telecommunications services such as internet access services and information services in the PRC.

As at January 2014, the company had wireline access lines in service of approximately 155 million, wireline broadband subscribers of approximately 100 million and mobile subscribers of approximately 185 million.

The company's H shares and American Depositary Shares are listed on The Stock Exchange of Hong Kong Limited and the New York Stock Exchange, respectively.