mPhase Wins US Army Small Business Technology Transfer (SSTR) Program Grant.

Award Is to develop a Long Shelf Life Green battery based on the Smart Nanobattery

LITTLE FALLS, N.J. -- mPhase Technologies, Inc. [OTCBB:XDSL], today announced that it has been selected in a competitive process by the US Army for a Phase 1, Small Business Technology Transfer Grant, along with its collaborator, Rutgers University's Energy Storage Research Group. The first stage of the award is to implement and characterize a lithium chemistry based version of the smart micro cell reserve battery to provide long term continuous power for a static RAM memory circuit for a computer device.

According to the award, the "Long shelf life, high power, multicell battery' submitted to the Army Small Business Technology Transfer (STTR) program, has been competitively selected, with the award period to begin immediately." The objective of the project is to "develop a low-power miniature (coin cell or similar) battery with a 30-plus year operational lifespan that is suitable for battery-backed static random access memory (SRAM) and environmentally friendly with minimal disposal issues."

"We are pleased that army researchers have recognized the potential of our micro reserve battery to meet the Army's need for a fundamental improvement in energy storage," said Ron Durando, mPhase Technologies, CEO. "We are just scratching the surface of potential military applications for our battery technology."

The technology currently being developed by mPhase/AlwaysReady, in conjunction with Rutgers University, promises to help transform the way the electronics industry currently looks at microbattery applications.

AlwaysReady and its technologies will have a number of exceptional advantages in its two initial products: a "smart" battery capable of producing current on demand after long term storage, as well as a family of uncooled magnetometers, including ultra sensitive versions capable of hundreds of times' improvement in sensitivity over currently available designs.

Another immediate application for the defense and security sector for the micro reserve battery is as an energy source to power remote sensors in areas lacking electricity. The prototype battery is based on a discovery that liquid droplets of electrolyte will stay in a dormant state atop microscopic structures until stimulated to flow, thereby triggering a reaction producing electricity. This super-hydrophobic effect of liquids can permit precise control and activation of the batteries when required.

The mPhase Nanobattery was highlighted in a feature article, "Building a Better Battery," in the November 2006 issue of WIRED magazine. To read an electronic copy of the article, please (click here)

Investors interested in more info can call the mPhase IR agency at [phone] or the company at 973-256-3737 or visit the web site at www.mphasetech.com

About mPhase Technologies, Inc.

mPhase Technologies Inc. (OTC: XDSL) develops and commercializes next-generation media-rich entertainment software and nanotechnology solutions, delivering novel systems to the marketplace that advance functionality and reduce costs. The company was awarded the Frost & Sullivan 2006 Energy Storage Award for the Nanobattery, the 2005 Frost & Sullivan Excellence in Technology Award, and the Nano 50 Award from NASA Nanotech Briefs in 2005. The company is bringing nanotechnology out of the laboratory and into the market with a planned innovative long life battery. Additionally, the company is working on prototype ultra-sensitive magnetometers that promise orders of magnitude increases in sensitivity as compared with available un-cooled sensors. More information is available at the mPhase Web site at www.mPhaseTech.com

About Rutgers University

Established in 1766, Rutgers is America's eighth oldest institution of higher learning and one of the nation's premier public research universities. Serving more than 50,000 students on campuses in Camden, Newark and New Brunswick, Rutgers offers more than 280 bachelor's, master's, doctoral and professional degree programs. The university is home to 27 degree-granting schools and colleges, and more than 150 specialized centers and institutes. With more than 340,000 living alumni, Rutgers graduates are major contributors to all sectors of contemporary life.

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Disclaimer: "The project or effort depicted was or is sponsored by the U.S. Army Research Office. The content of this press release does not necessarily reflect the position or the policy of the Government, and no official endorsement should be inferred."