Operational Launch in China

3 October 2013

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

Operational Launch in China

Phorm (AIM: PHRM), a leading internet personalization technology company, announces today that it has launched its operations in mainland China.

· Nation-wide opt-in process has commenced

· Average of 4.3 million users per day

· Commercialisation process has commenced

· Negotiations in progress with publishers and advertisers

· Deployment progressing with two further ISPs

Phorm previously announced on 30 September that it was finalizing its operational launch preparations. The Company is now pleased to announce that it has started a nation-wide opt-in process in China.

The first week of operation has seen an average of 4.3 million users per day.

The Company is now in the process of commercializing its operations and is currently negotiating with both advertisers and publishers. It is expected that over the coming months the Company will start its test campaigns before moving to commercial operations.

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Contact

Phorm Corporation Limited

Andy Croxson (analysts & investors) +44 207 297 2067

UK Investors

Mirabaud Securities LLP +44 20 7321 2508 (Joint Broker)

Jason Woollard

Peter Krens

Liberum Capital +44 20 3100 2222 (Nominated Advisor and Joint Broker)

Chris Bowman

Richard Bootle

US Investors

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

John Heilshorn

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