Internet Profits Will Rise for Advertisers and Web Site Owners, Phorm CEO Tells Journalists

LONDON--(Business Wire)--
Internet advertisers will soon pay less and more effectively
target their audiences, while web site publishers and bloggers will at
last have a way to truly monetize their content.

That is the message that reporters and bloggers heard during a
one-hour live conversation last week with Kent Ertugrul, Chairman and
CEO of Phorm, Inc., (AIM: PHRM) (AIM: PHRX). Phorm, a digital
technology company, is poised to deploy a proprietary, patent-pending
technology in the United Kingdom that revolutionizes both audience
segmenting techniques and online user data privacy.

"Think of this as a way to change the current model, where ads are
shown based on the page on which they are located, to a way of
changing to ads being shown based on who is looking at the page,"
Ertugrul told the reporters and bloggers who participated in the
briefing.

Because the ads running on a Phorm-affiliated ISP are more
relevant, they become more valuable, Ertugrul noted. But they also
become less expensive, he explained, because Phorm enables advertisers
to tap into the keywords being browsed across the entire spectrum of
Internet sites and not just those keywords being searched. With the
Phorm system, which targets users and not pages, advertisers can reach
desirable users even if the page they are browsing doesn't happen to
contain the right keywords.

For web site publishers and bloggers, the opportunity finally
exists to monetize their content not based on the quality of key words
appearing on any one page or the pure volume of readers, but on the
quality of those readers and their appeal to advertisers.

"If you (are) interested in the survival and thriving of the
press, then you want a model where the press can truly monetize its
audience, rather than monetize a few key words that happen to be part
of news pages that trigger ads," Ertugrul said. Because of the Phorm
technology, bloggers, too, will be able to evolve from poorly
compensated hobbyists to well-compensated publishers.

Ertugrul said that the first stage of Phorm's rollout in the UK is
"happening very shortly." Phorm revealed in February that it has
already signed up three large British ISPs - BT, Talk Talk and Virgin
Media, covering roughly 70% of broadband users in the UK.

Ertugrul acknowledged that Phorm is in conversations with a number
of American ISPs about integrating the Phorm technology into their
networks. "Obviously our interest is in entering the U.S. market," he
told the journalists.

The reporters and bloggers asked Ertugrul and Marc Burgess, senior
vice president of technology, a wide range of questions, including
those surrounding the protection of consumer privacy under the Phorm
technology.

Ertugrul and Burgess elaborated on the fact that Phorm's unique
technology - unlike major search engines - doesn't see, capture or
store any personally identifiable user information whatsoever and does
not store any browsing history or user search terms.

Moreover, users are given a clear vote on whether or not to
participate.

"The net result of this is, that for the first time you have a
system that can allow advertisers to reach individual profiles with no
data storage, there is no data mine in any of this, of where they have
browsed, no use of IP address, and no way of understanding who is
actually there."

Phorm said it will continue to hold live, unrestricted
conversations with reporters, bloggers and other constituents in the
coming weeks to answer all questions about the Phorm technology and
its impact on the Internet.

Ertugrul told the journalists that the Phorm system is so
innovative and counter-intuitive, it requires patient explanation.

Journalists and bloggers interested in participating in upcoming
Phorm briefings are invited to email David Sawday, director of Global
corporate communications, at david.sawday @ phorm.com or Dean Rotbart,
director of U.S. corporate communications, at dean.rotbart @
phorm.com.

An animated slide show that explains the Phorm system can be found
at http://www.phorm.com/user_privacy/slideshow.php

About Phorm:

Phorm is an innovative technology company specialising in
delivering behaviourally and contextually targeted advertising while
preserving users' personal privacy and security.

Phorm's partners include leading Internet Service Providers
(ISPs), Publishers (http://www.phorm.com/partners/publishers.php) , Ad
Networks (http://www.phorm.com/partners/ad_networks.php) and
Advertisers (http://www.phorm.com/partners/advertisers.php). Phorm is
a Delaware, US incorporated company, with offices in New York and
London and Moscow. The Company was admitted to the AIM market of the
London Stock Exchange in 2004 and has over 100 employees.

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

Phorm, Inc.
David Sawday (London), 44 207 297 2521

Copyright Business Wire 2008