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Scalable Smart Reserve Cell Technology Listed to Receive Funding

mPhase Technologies, Inc. announced today that scalable smart reserve cell technology is one of the items included in the Fiscal Year 2011 Defense Appropriations bill that was recently passed out of subcommittee in the United States House of Representatives. Scalable Smart Reserve Cell Technology is listed to receive funding in the amount of $2,500,000.

"We are encouraged that Congress has recognized the importance of this technology," said Mr. Ronald Durando, mPhase's President and Chief Executive Officer. The company is currently working closely with the United States Army to complete Phase II of a $750,000 Small Business Technology Transfer grant to develop scalable smart reserve power cell technology. This is the first time Congress has specifically designated funding for this type of technology.

If this funding is included in the final version of the bill, mPhase will be well positioned to compete for a federal grant, given its leadership in the field. The company is a leader in developing new innovative products using micro fluid dynamics, MEMS and super-hydrophobic suspension and separation of liquids on micro structures of silicon developed through the science of nanotechnology. mPhase began using the science of nanotechnology to develop power cells since in 2004 with the Bell Labs division of Alcatel-Lucent (formerly Lucent Technologies, Inc.)

The Company is scheduled to deliver a prototype of its Smart NanoBattery in the first quarter of its current fiscal year commencing July 1, 2010. "We believe that the successful delivery of a prototype of a first of its kind reserve battery designed for backup power for critical mission computer memory is vital in strategic weapons systems and sensor networks," said Durando. The company is positioned to custom tailor its Smart NanoBattery for a variety of military subsystems and critical mission commercial products.

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.

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