FRMO FRMO Corporation (PK)

FRMO Corp. Announces Results for Fiscal 2013

Extends invitation to
attend Annual Meeting in NYC August 27

Elmsford, N.Y. August 8, 2013. FRMO Corp.
(FRMO-OTC-PINK) has issued its audited Annual Report for its fiscal year ended
May 31, 2013.

Financial Highlights

FRMO?s net income was $10.3 million (26 cents
per share pre and post full dilution) for the fiscal year ended May 31, 2013. This
amount represents a 215% increase over the 2012 net income figure of $3.27
million that is largely attributable to the realized gain described below on
the exchange of its product-specific revenue interests in certain products
managed by Horizon Kinetics LLC (?Horizon Kinetics?).

For the years ended May 31, 2013 and 2012,
revenues from the product-specific revenue interests were approximately
$2,418,000 and $2,211,000, respectively. As of May 31, 2013, FRMO will receive
a single revenue interest (the ?Revenue Interest?) equal to 4.199% of the gross
revenues of Horizon Kinetics. On May 31, 2013, the 4.199% Revenue Interest had
a fair value of $10.2 million. As a result of this transaction, the Company
realized a gain of approximately $10.1 million, which is equal to the fair
value of the 4.199% Revenue Interest at the close of business on May 31, 2013
over the cost basis of the revenue interests in the Horizon Kinetics related
products transferred to Horizon Kinetics on that date.

Tangible book value advanced for the thirteenth
consecutive year (since inception) to a record $83.37 million ($1.93 per share)
in 2013 vs. $54.26 ($1.39 per share) in 2012. Current assets, comprised
primarily of cash and equivalents and investments available for sale, amounted
to $74.84 million. Total liabilities amounted to $12.65 million, the majority
being current and non-current deferred taxes. The increase in total liabilities
from the 2012 level of $5.05 million is mainly due to the increase in current
and non-current deferred tax on the approximately $10.057 million gain from the
Revenue Interest transaction

Further detail is available in the audited
report of the Company?s Consolidated Financial Statements for the Year Ended
May 31, 2013, and for contextual content in particular, the 2013 Letter to
Shareholders from Murray Stahl, Chairman and Chief Executive Officer. These, as
well as the Proxy Statement for the Annual Meeting of Shareholders, have been
filed on the OTC Markets Group?s Disclosure and News Services (DNS), which may
be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents, as
well as research referred to in the Shareholder Letter, are also available on
the FRMO web site, www.frmocorp.com.

Other Matters ? Annual Meeting Invitation

The Chairman, President, and Board of
Directors of FRMO Corp. cordially invite you to attend its Annual Meeting at
which they will review the Fiscal 2013 financial results and the outlook for
the future. They will be available to answer questions and look forward to
meeting you. The Annual Meeting will be held on:

Tuesday, August 27, 2013 at 3PM

The Harvard Club

35 West 44^th Street

New York, NY