mPhase Beta Testing TRAVERSERô Delivery Of Voice, Data And Digital Television Over Copper Wires

mPhase Technologies, Inc. (OTC BB: XDSL), the leading designer of broadcast digital television and high-speed data solutions for the telecommunications industry, announced today that it has completed the first phase of beta production of its TRAVERSERô Digital Video and Data Delivery System (DVDDS). The manufacturing of the TRAVERSER will be completed at Flextronics International Ltd. (NASDAQ: FLEX), a full-service supplier of innovative design, engineering and electronics manufacturing solutions.""Beta production of the TRAVERSER is a significant next step in making the consolidated delivery of voice, data and digital television over copper wires available to telco subscribers worldwide,"" said Sue Cifelli, Executive Vice President of Marketing and Sales for mPhase. ""We are rapidly moving toward commercial production at a time when the telco industry is desperately looking for a technological solution to respond to cable industry advances at winning away telco subscribers. The recent proposed merger between AOL and Time Warner is sending a strong message to the telecommunications industry. Convergence is going to be critical to fulfilling customer demand and ensuring telcos will thrive in a marketplace where subscribers are in the driver's seat.""Flextronics completed a pilot run of the central office equipment for mPhase's TRAVERSER Digital Video and Data Delivery System (DVDDS) in December and will complete the Intelligent Network Interface (INI) (a next generation set top box) pilot run this month. These products will enable telecommunications companies to simultaneously broadcast digital television, high-speed Internet access and traditional telephone service over existing copper telephone wires.Flextronics, the world's fourth largest contract manufacturer, is producing the TRAVERSER INI and the central office equipment in its Westford, Massachusetts, Product Introduction Center. Flextronics and mPhase intend to begin full production in April 2000. The next step is to make any necessary revisions to system boards and move into Beta Stage 2 production. The Flextronics Industrial Park model reduces logistical barriers to manufacturing and provides mPhase with a central manufacturing resource.mPhase's TRAVERSER will enable telephone companies to compete with broadband carriers in the emerging high-speed Internet access market by providing an all-in-one communications solution. The TRAVERSER uses Rate Adaptive Digital Subscriber Line (RADSL) technology to enable telephone companies to simultaneously transmit high-speed Internet access, up to 400 channels of digital television programming and traditional voice services. This approach maximizes a telco's substantial investment in existing copper telephone wires. The TRAVERSER also opens new revenue streams for telcos by enabling them to provide new types of enhanced services like digital ad insertion, e-commerce and Internet advertising.Trials of mPhase's TRAVERSER are currently underway in Hartwell, Georgia, Ulysses, Kansas and Atlanta, Georgia. The TRAVERSER will be available nationwide to telcos for purchase in the first half of 2000.