Powering The On-Demand TV Generation

Press Release

mPhase Technologies Selects Espial Evo TV Middleware and Applications for Accelerated Time-to-Market of Telco IPTV Services

April 26, 2005
Joint solution delivers entertainment grade, revenue-generating applications for operators including: Video on Demand, Portal Services and Interactive Advertising

Little Falls, N.J. (USA) April 26, 2005 – mPhase Technologies [OTC: XDSL] today announced that it has reached an agreement with Espial® to embed Espial Evo™ as part of its leading-edge Internet Protocol television (IPTV) service creation platform and applications. This platform will enable telephone companies to offer a suite of As You Like ItTM broadcast TV, Video on Demand (VOD) and enhanced broadband consumer services. Espial is a leading provider of client applications, middleware and enabling technologies for the IPTV market.

mPhase Technologies markets the TV+ System, a software video switch platform that allows telephone companies to readily adapt their traditional broadband offering into packaged bundles of multimedia services based on customer demographics. Including the Espial Evo client middleware and applications in the offering ensures design flexibility so that customers have increased control over their television viewing experience, improving brand loyalty and reducing customer churn. Espial Evo’s extensible architecture and highly customizable, entertainment grade set-top box (STB) applications ensure that telco operators compete aggressively with cable and satellite television offerings.

“The market-leading Espial Evo framework, in combination with the mPhase TV+ subscriber management system, enables service providers to deliver innovative applications on a reliable, secure infrastructure,” said Phil Thompson, EVP-product management, mPhase Technologies. “By combining our expertise with Espial’s, telephone companies will be able to offer applications and services known to generate revenue and reduce customer churn.”

Espial Evo provides complete, integration-ready IPTV client middleware and applications such as EPG, VOD, TV controls, STB settings and Portal – all in an industry-leading footprint of 800KB or less. Espial Evo delivers an interactive entertainment-grade experience with an intuitive interface that is easy to use. The modular software platform facilitates customization and integration into any operator’s back office environment.

With a unique architecture that separates the core application logic from the user interface design, Espial Evo allows content to be developed and customized in standard markup languages, like HTML. In addition, the Espial Evo Portal application enables telcos to provide localized content, including advertising, thanks to its revenue-generating HTML-based portal services. Espial Evo provides interfaces to the As You Like It platform for managing performance and customization features.

“The mPhase and Espial collaboration realizes the value of complete applications with off-the-shelf tools for rapid customization of both the ‘look and feel’ and the service offering of an IPTV design,” said Denise MacDonell, director of marketing, middleware and applications at Espial. “mPhase has a clear understanding of telco requirements and has delivered a product that will surpass those expectations.”

mPhase will be demonstrating its system capabilities with Espial Evo at TelecomVideo Europe 2005 in Amsterdam, Booth # 33 from May 10-12th, 2005.

About mPhase Technologies, Inc.

Phase 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 iPOTS, designed to help service providers lower the provisioning and operating costs associated with DSL. The company, awarded the 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. More information is available at the mPhase Web site at www.mPhaseTech.com.

About Espial

Espial is the leading provider of rapidly customizable software for set-top boxes and consumer electronic devices. Espial applications and enabling technologies include User Interface Design Tools, Application Management and Design Frameworks, and applications such as Video On Demand, Electronic Program Guides, Content Portals, and Web browsing. The company is the recipient of the Deloitte and Touche 'Fast 50' top companies in Canada, two years running. Espial software is deployed and accredited for more than 100 consumer designs such as Motorola, Siemens, Sumitomo Electric Networks, Thomson, Philips, LodgeNet, OnCommand, S-Net Systems, and i3Micro Technologies. Espial can be found on the web at www.espial.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 of both companies 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.

Media Contacts:

Sam Gronner, TMI, for mPhase Technologies
201) 592-7896, sam@technovative.com

Meredith Dundas, Marketing Communications Manager
(613) 230-4770 ext. 1142, mdundas@espial.com

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