/ CORRECTION - mPhase/AlwaysReady Provides Live Video of Lithium Smart Nanobattery Demonstration

LITTLE FALLS, NJ--(MARKET WIRE)--May 12, 2008 -- In the news release, "mPhase/AlwaysReady Provides Live Video of Lithium Smart Nanobattery Demonstration," issued earlier today by mPhase Technologies (OTC BB:XDSL.OB - News), we are advised by the company that the video link at the end of the third paragraph should read "http://www.youtube.com/v/uDhL--RLzoU." Complete corrected text follows.

mPhase/AlwaysReady Provides Live Video of Lithium Smart Nanobattery Demonstration

LITTLE FALLS, NJ--(May 12, 2008) - mPhase/AlwaysReady, Inc. (OTC BB:XDSL.OB - News) stated today that it has uploaded a video of its demonstration of the manual activation of its revolutionary lithium based Smart NanoBattery in front of a live audience at the 7th Annual NanoBusiness Alliance Conference and Exhibition, the leading nanotechnology trade association, at the Marriot Marquis hotel in Times Square, New York City.

During the demonstration, mPhase/AlwaysReady mechanically activated a lithium pouch based reserve battery, illuminating an LED light in front of a live audience. "This is the first public activation of a prototype containing a lithium based chemistry, a significant development milestone for the company," said AlwaysReady CEO Dr. Fred Allen.

A video of the live demonstration can be seen by going to www.mPhaseTech.com and clicking on the link at the bottom left hand side of the homepage. You can also view the video on YouTube by going to this link -- http://www.youtube.com/v/uDhL--RLzoU

mPhase looks forward to its next live demonstration on May 20th of the lithium based Smart Nanobattery which will be activated by electrical and electromagnetic means. Details will be provided in the near future. If you would like to attend please contact Gerard Adams our Managing Director of Investor Relations at 973-256-3737 x105 or via email at Gerard@mPhaseTech.com.

About mPhase/AlwaysReady, Inc.

mPhase Technologies, Inc. (OTC BB:XDSL.OB - News), through its wholly owned subsidiary AlwaysReady, Inc., is focused on developing and commercializing a new battery technology based on a well-patented phenomenon known as electrowetting, which provides a unique way to store energy and manage power that will revolutionize the battery industry. For more information please visit our website 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 of companies mentioned in this press release 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 company has no control.

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