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mPhase Technologies and Bell Labs Announce Milestone in Sensor Development; First Sample of Device Made in New Jersey Nanotechnology Consortium Fab



LITTLE FALLS, N.J.--(BUSINESS WIRE)--May 25, 2005--mPhase Technologies, Inc. (OTC:XDSL) and Bell Labs, the research and development arm of Lucent Technologies (NYSE:LU), today announced that they have produced the first core components of a sensor package, technically referred to as a magnetometer, that is predicted to be up to 1,000 times more sensitive than commercially-available uncooled sensors used in metal detectors.

These components were produced in the silicon fab line operated by the New Jersey Nanotechnology Consortium (NJNC), a subsidiary of Lucent based at and run by Bell Labs in Murray Hill, N.J.

"Considering that our magnetometer agreement with Bell Labs is less than three months old, we`re absolutely delighted about the rapid pace of the development," said Ronald A. Durando, mPhase CEO. "With this step behind us, the team is now ready to engage in discussions with potential partners and users to establish technical specifications for these devices."

The prototype magnetometer has, at its core, a Micro-Electro Mechanical Systems (MEMS) device, which is based on fundamental breakthroughs made in the past few years at Bell Labs, using the NJNC facilities. Acting much like a miniature tuning fork or oscillator, with movements only perceptible under a microscope, it is designed to detect changes in magnetic fields and can be used in applications to establish direction of movement of magnetic objects.

"The velocity of transition from lab to prototype speaks highly of the NJNC business model, which enables mPhase to leverage Bell Labs` expertise in accelerating the product realization process," said David Bishop, NJNC president and Bell Labs vice president of Nanotechnology.

The magnetometer was the subject of a joint briefing at the NanoBusiness 2005, available as a webcast upon registration at http://phx.corporate-ir.net/phoenix.zhtml?c=115986&p=irol-ir…

Market research indicates that initial applications will be centered on national defense and homeland security, and these are under discussion with early adopters, according to Durando.

The mPhase-Bell Labs collaboration on magnetometers is an outgrowth of a year-old co-development agreement centered on a nanotechnology-based power cell that may serve as a power source for the magnetometers and other applications.

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. The company, awarded the 2005 Frost & Sullivan Excellence in Technology Award, is bringing nanotechnology out of the laboratory and into the market with a planned innovative long life power cell. Additionally, the company is working on prototype ultra-sensitive magnetometers that promise up to a 1,000-fold increase in sensitivity as compared with available uncooled sensors. More information is available at the mPhase Web site at www.mPhaseTech.com

About Bell Labs and Lucent Technologies

Bell Labs is the leading source of new communications technologies. It has generated more than 30,000 patents since 1925 and has played a pivotal role in inventing or perfecting key communications technologies, including transistors, digital networking and signal processing, lasers and fiber-optic communications systems, communications satellites, cellular telephony, electronic switching of calls, touch-tone dialing, and modems. Bell Labs scientists have received six Nobel Prizes in Physics, nine U.S. National Medals of Science and eight U.S. National Medals of Technology. For more information about Bell Labs, visit its Web site at www.bell-labs.com.

Lucent Technologies designs and delivers the systems, services and software that drive next- generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent`s customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., U.S.A, visit www.lucent.com.

About The New Jersey Nanotech Consortium

The New Jersey Nanotechnology Consortium (NJNC) provides rapid and cost-effective access to world-class nanotechnology research and development services. A subsidiary of Lucent Technologies, based at and run by Bell Labs, the NJNC conducts basic and applied nanotechnology research and provides fabrication and packaging capabilities, fulfilling its mission of bringing nanotech ideas from concept to commercialization. The NJNC is also supported by the State of New Jersey, enabling participation of local research universities including Rutgers University, New Jersey Institute of Technology and The University of Medicine and Dentistry of New Jersey.

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 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.


CONTACT: TMI for mPhase Technologies:
Media Contacts:
Sam Gronner, 201-592-7896
[e-mail]
or
Lucent Technologies for Bell Labs:
Devon Prutzman, 908-582-7190
[e-mail]

SOURCE: mPhase Technologies

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