Turkish Operational Update

17 December 2012

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

Operating Update on Commercial Progress in Turkey

Phorm (AIM: PHRM), the internet personalisation technology company, welcomes the recent decision by the Turkish regulator, the BTK, to introduce regulations for the approval process for behaviourally targeted advertising solutions in Turkey and is also pleased to announce a major publishing agreement.

·; BTK brings clarity to the approval process for online advertising solutions

·; Invitation process improved based on suggested guidelines

·; Major agreement signed with key publishing partner

Following its review of the approval process for the Gezinti personalised content and advertising service, the BTK has issued a new set of regulations governing the approval process. Phorm welcomes the clarity that this decision brings, in this previously unregulated area, and strongly supports the use of an opt-in process regarding the use of data for behaviourally targeted advertising solutions.

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 believes that the BTK's decision marks a major milestone with respect to user consent for online advertising and that this pushes all targeted advertising providers to use the same high standards thus reducing unfair competition in the market while increasing consumer protection.

Phorm's improved invitation process takes account of these new guidelines and the Company is in the process of issuing new invitations based on the BTK's guidance.

Phorm believes that the decision has further enhanced the already high standards of transparency it has set and that it will have no significant impact on its commercial prospects in Turkey.

Phorm is also delighted to announce that it has signed a major agreement with one of its publishing partners that should further accelerate commercial progress. This agreement reflects the success of the early results of the targeted content and advertising service and is a strong endorsement of the solution by a key partner.

Phorm looks forward to updating the market on further commercial progress in due course.

For Enquiries

Phorm Corporation Limited

Mark Williams (analysts & investors) +44 20 7297 2326

Alex Laity (media) +44 20 7297 2710

Liberum Capital +44 20 3100 2222

(Nominated Advisor and Joint Broker)

Chris Bowman

Richard Bootle

Mirabaud Securities LLP +44 20 7321 2508

(Joint Broker)

Jason Woollard

Peter Krens

Hudson Sandler +44 20 7796 4133

Charlie Jack

Charlie Barker

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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 partners include leading Internet Service Providers (ISPs), Publishers, Ad Networks and Advertisers.

Phorm, under a predecessor holding company, was admitted to the AIM market of the London Stock Exchange in 2004 and has over 140 employees and contractors.

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