EXHIBIT 99.1


Press Release

                        mPhase Announces Rights Offering


Business/High Tech Editors

NORWALK, Conn.--(BUSINESS WIRE)--August 7, 2002

mPhase Technologies, Inc. (OTC BB: XDSL), one of the leading designers of
innovative solutions for the delivery of broadcast digital television and
high-speed data solutions over copper wires, announced that it has filed a
registration statement with the Securities and Exchange Commission in connection
with a rights offering to its existing shareholders. The rights offering will
consist of 23,000,000 shares of common stock. The proposed offering will be made
to shareholders of record as of August 17, 2002.

The terms of the rights offering provide that each shareholder will be granted
the right to purchase one share of common stock for every four shares of stock
owned as of the record date of August 17, 2002 for a subscription price of $0.30
per share. In addition, an oversubscription privilege has been included,
allowing shareholders to subscribe for additional shares not subscribed for by
other shareholders on a pro rata basis. The rights offering also provides that
each shareholder who owns less than 1,250 shares will have the right to purchase
up to 1,250 shares regardless of the number of shares owned as of the record
date. The rights will be transferable and are expected to be listed as a
separate security on the Over-the-Counter Bulletin Board. No fractional rights
will be issued, but mPhase will round the number of rights its shareholders
receive down to the nearest whole number.

mPhase intends to use the net proceeds for working capital and other general
corporate purposes and to repay certain indebtedness. The rights offering will
commence after SEC effectiveness of the Registration Statement and will expire
on September 30, 2002. It should be noted that, if the Securities and Exchange
Commission elects to review the filed Registration Statement and is unable to
declare it effective by August 14, 2002, this offering will need to be postponed
until after mPhase files iits annual report on Form 10-K for the year ended June
30, 2002.

         A registration statement relating to these securities has been filed
with the Securities and Exchange Commission but has not yet become effective.
These securities may not be sold nor may offers to buy be accepted prior to the
time the registration statement becomes effective and will be made only by means
of a prospectus. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state.




About mPhase Technologies, Inc.:

mPhase Technologies Inc. operates three primary business segments:

-      The Company develops solutions for cost-effectively and reliably
       transmitting broadcast digital television, high-speed Internet access and
       traditional telephone service over existing copper telephone lines via
       its flagship product, the Traverser(TM) Digital Video and Data Delivery
       System (DVDDS). The award-winning Traverser(TM) system enables service
       providers to simultaneously transmit up to 400 channels of MPEG-2 digital
       television programming via a NIP (Non-Internet Protocol)-based platform.
       As a result of its innovative design, the Traverser(TM) has the longest
       serviceable distance radius, is the most reliable and is the
       cost-effective solution for the delivery of video-over DSL.

-      mPhaseTelevision.net, Inc. ("mPhaseTV") provides a turnkey digital
       television package, including basic, premium and pay-per-view programming
       to service providers utilizing video over DSL (digital subscriber line).
       The comprehensive package offered by mPhase and mPhaseTV provides telcos
       with turnkey systems that couple technology with content, thereby
       enhancing their revenue opportunities, speeding time to market and
       allowing for additional revenues from near-video-on-demand, digital ad
       insertion and other sources.

-      mPhase offers a growing line of components utilized in the installation
       and testing of DSL, including the high density POTS Splitter Shelf, Test
       Access Shelf, iPOTS(TM) (Intelligent POTS Splitter Shelf),
       UniversalBypass and the recently introduced mPhaseStretch(TM). These
       products help all service providers lower the provisioning and operating
       costs associated with DSL.

More information is available at the mPhase Web site at www.mPhaseTech.com, or
by calling 877.674-2738. Investors may obtain additional information and
subscribe to investor services by referring to the Investor Information section
at the mPhase Web site or by calling Brittany Raymond of the Investor Relations
Department at 203/854-1348.

Any statements contained in this press release that do not describe historical
facts may constitute forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Any forward-looking statements
contained herein are based on current expectations, but are subject to a number
of risks and uncertainties. The factors that could cause actual future results
to differ materially from current expectations include the following:
fluctuations in customer demand; the Company's ability to manage its growth; the
risk of new product introductions and customer acceptance of new products; the
rapid technological change which characterizes the Company's markets; the risks
associated with competition; the risks associated with international sales as
the Company expands its markets; and the ability of the Company to compete
successfully in the future, as well as other risks identified in the Company's
Securities and Exchange Commission filings, including but not limited to those
appearing under the caption "Risk Factors" in the Company's 10-KSB and 10-QSB
federal filings.


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         Contact Information:

         mPhase Technologies, Inc.

         Jennifer Silcott, Director of Marketing

         Phone: 203.831.2208
Email:   Jsilcott@mphasetech.com