Purchase of mPhase TV+ System to Provide IPTV, Video-on-Demand and Advanced Features for a 6,000-Subscriber Deployment

The phased deployment will begin as a 1,500-subscriber trial for one month, and then scale up to a 6,000-subscriber commercial system.

The mPhase TV+(TM) System enables advanced video services over broadband access networks, providing network operators with the ability to operate and manage television-based services.

"We are delighted to have been selected by a major company for the first IPTV launch in the Ukraine market," said Ronald Durando, mPhase chief executive. "The mPhase TV+ System is ideal for operators like Comstar Odessa because it is highly modular and scalable to hundreds of thousands of subscribers."

With a population of more than 47 million, Ukraine is one of the largest countries in Central and Eastern Europe and presents huge potential as a growing economy. Comstar Odessa is a large telecommunications provider that is rapidly growing business and building a next-generation network in the largest cities in Ukraine to offer such advanced services as high-speed Internet and IPTV to businesses and consumers.

About mPhase Technologies, Inc.

mPhase Technologies Inc. (OTCBB: XDSL - News) 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+ System cost-effectively and reliably manages the delivery of television or video over broadband DSL, fiber or Ethernet access lines. mPhase also offers a line of innovative DSL component products designed to help service providers lower the provisioning and operating costs associated with DSL. More information is available at the mPhase Web site at www.mPhaseTech.com.

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