NEWS

WIRES

OTHER

mPhase Technologies, Inc. in Negotiations With Private Equity Group

mPhase Technologies, Inc. (OTCBB: XDSL) announced today that it is in negotiations with a Private Equity group to invest a minimum of $2 million in mPhase. The Private Equity investment would enable the Company to avoid continuous financings in the public markets and would also bring a new Board Member to the Company with a solid foundation in cost reduction and marketing. This would accelerate the time to market for the Company's products. The acceleration to market in the consumer products area would supplement the Company's continued pursuit to receive government funding for its SmartNanoBattery and other products related to its Smart Surface Technology.

About mPhase Technologies, Inc.
mPhase Technologies is introducing a revolutionary Smart Surface technology enabled by breakthroughs in nanotechnology, MEMS processing and microfluidics. Our Smart Surface technology has potential applications within drug delivery systems, lab-on-a-chip analytic systems, self-cleaning systems, liquid and chemical sensor systems, and filtration systems. mPhase has pioneered its first Smart Surface enabled product, the mPhase Smart NanoBattery. In addition to the Smart Surface technology, mPhase recently introduced its first product, the mPower Emergency Illuminator, an award-winning product designed by Porsche Design Studio and sold via the mPower website: http://www.mpowertech.com. More information about the company can be found at http://www.mPhaseTech.com.

Forward-Looking Statements
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company's SEC Filing. mPhase assumes no obligation to update the information in this release.