mPhase Traverser DVDDS Featured On CNN; Georgia Telco's Deployment of Innovative Television-Over-Copper DSL Delivery System Shown on CNN News.

Business/Technology/News Editors

NORWALK, Conn.--(BUSINESS WIRE)--Jan. 22, 2001

mPhase Technologies, Inc. (OTC BB: XDSL), the leading designer of broadcast digital television and high-speed data solutions for the telecommunications industry, announced today that the company's flagship product, the Traverser Digital Video and Data Delivery System (DVDDS), was featured today on the CNN News Network. mPhase's first commercial telephone company deployment, in conjunction with Hart Telephone in Hartwell, Georgia, was featured on CNN News, demonstrating how people in that community benefit from the Traverser system.

The Traverser DVDDS provides telcos with the ability to offer digital television programming, broadband-speed Internet access and POTS (Plain Old Telephone Service), all over existing copper telephone lines. mPhase utilizes RADSL (Rate Adaptive Digital Subscriber Line) technology and a patented delivery and access system to provide a bundled solution to telcos and their customers.

"mPhase is delighted that CNN profiled the mPhase DVDDS rollout in Hartwell," said mPhase President & CEO Ronald A. Durando. "As the story showed, people now have a new choice in how communications and media services are delivered, using their existing copper wires to enjoy TV, Internet and phone service. We are pleased to be able to begin providing the Traverser to Hart's customers on a broad scale and look forward to expanding deployment to other telcos in the US and around the world."

A text story describing the feature, entitled "Small Town Tests TV, DSL Combo Via Phone Lines," may be found via a link at the mPhase web site at www.mPhaseTech.com or at CNN's Web site at http://www.cnn.com/2001/TECH/computing/01/22/small.town.high.tech/ index.html.

About mPhase Technologies, Inc.

Utilizing Rate Adaptive Digital Subscriber Line (RADSL) technology and its proprietary Traverser Digital Video and Data Delivery System (DVDDS), mPhase Technologies, Inc. (OTC BB: XDSL) develops solutions that allow telephone companies to cost-effectively and reliably transmit up to 400 channels of broadcast (real time) digital television programming, high-speed Internet access and traditional telephone service over existing copper telephone lines. The comprehensive package offered by mPhase and mPhaseTelevision provides telcos with turnkey systems that couple technology with content, thereby enhancing their revenue opportunities. More information is available at www.mPhaseTech.com or by calling 1.877.mPhaseTV. Investors may obtain additional information and subscribe to notification services by referring to the Investor Information section at the mPhase Web site, by calling the mPhase 24-hour toll-free Investor Hotline at 1.877.411.XDSL or by calling the Investor Relations Department at 203.854.1343.

Any statements contained in this press release that do not describe historical facts may constitute forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include the following: fluctuations in customer demand; the Company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission filings, including but not limited to those appearing under the caption `Risk Factors' in the Company's 10-K and 10-Q federal filings.