August 28, 2006: Palladium Capital Advisors, LLC announced today that it acted as exclusive placement agent in a transaction in which MPHASE TECHNOLOGIES INC (“The Company”)(XDSL:OTCBB) raised $1 million in equity. The deal involved the sale of 5,555,556 shares of common stock plus a 5 Year Warrant to purchase 5,555,556 shares of common stock at $.18 per share to Wolfson Equities, Inc., 1 State Street Plaza, New York, N.Y.

Phase Technologies, Inc., a development stage technology company, engages in the development and sale of broadband communications products, primarily middleware/software and set top boxes, in the United States. It also provides systems integration solutions for delivery of broadcast television, video-on-demand, Internet, and voice using internet protocol over the existing infrastructure of a telephone service provider. The company’s other DSL products include Plain Old Telephone Service Splitter Shelf, a low pass/high pass filter that separates voice and data transmissions; microfilters, including a 2 and 4 pole filter for use in single and multiphone households, as well as a Network Interface Device Splitter. mPhase Technologies has a research and development agreement with the Bell Labs division of Lucent Technologies, Inc. for exploratory development of micro power cell battery arrays employing nantextured superhydrophobic materials. The company was co-founded by Ronald A. Durando and David Klimek. mPhase Technologies was incorporated in 1979 and is headquartered in Norwalk, Connecticut.