mPhase Technologies Optimizes its Nanobattery Design on Basis of Customer Requirements for Sensor Applications

NORWALK, Conn.--(BUSINESS WIRE)--Dec. 16, 2004--

Discussions with Military, Oil Industry and Homeland Security Clients Confirm Research Reports About Sensor Market Demand

“For Sale: Sensor, runs well, microbatteries not included”

mPhase Technologies, Inc. (OTC:XDSL) today reported that discussions with potential users of its novel nano-structured materials-based battery, now under development, are confirming high interest in sensor applications, validating recent research studies by several organizations.

Through meetings and visits to the development facilities at the Lucent Technologies New Jersey Nanotechnology Consortium at Bell Labs, Murray Hill, N.J., mPhase is collecting important data to optimize the nanobattery for uses in a variety of remote sensor applications. Military planners have established power requirements for miniature next-generation sensors that would sit unobtrusively and be activated by remote control. Similarly, oil industry experts have provided power requirements for sensors to detect pipeline leaks in remote areas.

A key advantage of the mPhase design is the high degree of integration now possible. Standard silicon fabrication enables the power source to be part of a "sensor on a chip" that also incorporates circuits for detecting motion, gas or liquids, temperature and other environmental conditions. This creates a small form factor that is ideally suited for remote placement in areas lacking electricity.

"There are great synergies between the sensor market and the capabilities we're developing," noted Ron Durando, the CEO of mPhase Technologies Inc. "With its long shelf life and ability to be scaled down to very small sizes, including levels of integration not possible with conventional battery technology, the mPhase nanobattery provides a critical missing link for the sensor market. Sensing applications like RFID tags are likely to have the best near-term opportunity for mPhase to reap returns on our research and development investment."

Mr. Durando noted that this is further evidenced by recently published data. For example, an analysis by NanoMarkets forecast the global nanosensors market as growing from a modest $185 million in 2005, to $2.7 billion in 2008 and reaching $17.2 billion by 2012. Similarly, Small Times, a nanotechnology industry publication, in a report headlined, "For Sale: Sensor, runs well, microbatteries not included," drew attention to the problem, highlighting the benefits of the mPhase nanobattery as a solution for powering remote sensing devices. (Read the article at http://www.mphasetech.com/smalltimesreport.pdf )

About mPhase Technologies

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 Broadband Loop Watch, 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.

Safe Harbor Statement

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 in light of current conditions, expected future developments and other factors it believes to be appropriate. Actual results may differ as a result of factors over which the companies have no control.