Operational Update

6 October 2014

Phorm Corporation Limited

("Phorm" or the "Company")

Operational Update

Phorm (AIM: PHRM), a leading internet personalisation technology company, announces an unaudited operational and financial update demonstrating continued robust growth in the group's revenues and key performance indicators (KPIs), since its previous update, announced on 27 June 2014.

Note:

* KPIs for Q3 2014 are for the 3-month period from 1 July 2014 to 30 September 2014.

On 22 August 2014, Phorm announced in its unaudited interim results for the six months ended 30 June 2014 that the Company's technology was deployed with 10 internet service providers ("ISPs") worldwide; this has now increased to 16 ISPs. As a result, the number of users has grown significantly. The number of peak daily unique users in Q3 2014 versus H1 2014 has grown from 37.8m to 73.5m.

The number of advertising requests received from website publishers has also increased significantly. In Q3 2014, the Company exceeded the total number of advertising requests received in the whole of H1 2014, with 78.3 billion requests received. This is a reflection of both the increase in the number of users and the number of publishers and advertising exchanges with whom the Company is working.

On 27 June 2014, Phorm announced that it expected the growth in the number of advertisements served to strengthen with the gathering momentum of its operations in China and elsewhere. The Company is pleased to announce that this growth is now evident in its results. The total number of advertisements served in the 3 month period to 30 September 2014 was 3.3 billion, which compares favourably with the 2.6 billion served in the previous 6 months.

The increase in the number of advertisements served reflects the growth of new advertising relationships in China and elsewhere. The speed with which test campaigns are converting into revenue generating commercial campaigns is also increasing. The Company has already generated US$474,000 in gross revenue in the 3 month period to 30 September 2014 and over the course of the last few weeks it has seen the rate of revenue generation increase significantly.

The Company is continuing to focus on the acceleration of revenue growth while maintaining the high standards of advertising performance that have been achieved to date and will provide further updates in due course.

-Ends-

For further information please contact:

Phorm Corporation Limited

Andy Croxson (analysts and investors) +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 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 the AIM market of the London Stock Exchange in 2004.

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