mPhase Technologies and Bell Labs Extend Agreement to Enhance mPhase TV+ System for High-Speed Data and Digital TV Delivery over Telephone Networks.

NORWALK, Conn. -- mPhase Technologies, Inc. (OTC BB: XDSL), a leading designer of innovative solutions for the delivery of broadcast digital television and high-speed data solutions over telephone networks, today announced an extension to an agreement with Lucent Technologies (NYSE:LU) to collaborate on enhancements to its mPhase TV+ System.

Under the extension of the agreement between the companies, Bell Labs, Lucent's research and development arm, will design software and hardware, including an enhanced set top box that takes advantage of Internet Protocol (IP).

mPhase and Bell Labs have been working for more than a year to further improve the economics of television and broadband data delivery over telephone networks.

"The next generation of this technology will marry IP to the operations and maintenance features that telephone companies demand," said Paul Wilford, director, Advanced Communications Technology at Bell Labs.

The current version of the TV+ System for DSL networks delivers 255 channels of broadcast television and broadband data and enables subscribers to surf channels though an electronic programming guide. The system supports more than 1000 subscribers from a single Lucent Stinger(TM) DSL Access Concentrator chassis. Further enhancements are expected in the near term as the companies continue their development efforts. The companies are currently working on the third release of the mPhase TV+ System.

Ronald A. Durando, CEO of mPhase, said: "If you want carrier level reliability and scalability in an IPTV system, there's no one with more experience in the field than Bell Labs. They are helping to build our next generation product to be compliant with industry standards and IP protocol. Just like phone networks, the next system will work seamless over copper or fiber optic networks."

About mPhase Technologies, Inc.

mPhase Technologies Inc. (OTC: XDSL) develops and commercializes next-generation telecommunications and nanotechnology solutions, delivering novel systems to the marketplace that advance functionality and reduce costs. In telecommunications, the Company's mPhase TV+ platform cost-effectively and reliably delivers entertainment digital television, high-speed Internet access and traditional telephone service over existing copper telephone lines. mPhase also offers a growing line of innovative DSL component products, such as the iPOTS, designed to help service providers lower the provisioning and operating costs associated with DSL. The company is bringing nanotechnology out of the laboratory and into the market with a planned innovative long, life power cell.

More information is available at the mPhase Web site at www.mPhaseTech.com.

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This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of both companies in light of current conditions, expected future developments and other factors they believe to be appropriate. Actual results may differ as a result of factors over which the companies have no control.