mPhase Technologies Inc (XDSL)

[SeriousMoney]

mPhase commercializes tiny metal detector...
http://www.mphasetech.com/XDSL%20Investor%20News.htm

September 2005

Dear mPhase Shareholders,

As the fall trade show season begins to ramp up, I want to take a moment of your time to update you on our three major initiatives. Over the next few weeks I'll send you updates reporting on our progress and focusing on the market potential of each of our major initiatives: IPTV; our Nanobattery; and our ultra-sensitive magnetometer development.

I want to start with our newest initiative, the magnetometer, because it represents an enormous potential, yet many investors tell me that they don't understand what they really are.

Magnetometers detect changes or disturbances in magnetic fields and derive information on properties such as direction, presence, rotation, angle, or electrical currents; they make excellent sensors for a wide range of applications.

You can think of these as being part of a family of some of the world's most sensitive metal detectors that work at room temperatures. The photo on the right shows one of the mPhase magnetometers samples in relation to the date line on a Lincoln penny. The tiny size and design using silicon processing enables the new applications that are not possible with current technology. The company expects the new sensors to be as much as 1,000 times more sensitive than current sensors.

This expected improvement in sensitivity may enable more accurate passive detection (range, bearing and mass) of metallic objects. In military applications, for example, the proposed magnetometer may be able to detect the presence of a solider carrying a rifle at approximately 150 feet from a single sensor, and larger targets such as a car may be detected at 800 feet from a sensor.

Metal detection is only one application for these magnetometers. These advanced sensors can also be used for RFID tags, metal stress detection, location and direction finding representing multi-million dollar opportunities.

The highest sensitivity magnetometers commercially available today are quantum magnetometers. Called SQUIDs (for Superconducting Quantum Interference Devices), these devices only work at the temperature where liquid helium boils, -455°F, making such magnetometers expensive and bulky, ill-suited for remote-sensing applications.

The mPhase magnetometer technology overcomes the cooling problem and enables a micro-scale, low-cost magnetometer that does not require cooling. The mPhase magnetometer should be up to 100-1,000 times more sensitive than existing commercial un-cooled devices.

The mPhase magnetometer will be smaller, more sensitive, less costly, and operate at room temperature, thus enabling a new class of sensor systems with appeal to specialized military as well as mass-market commercial applications.

Basic sensor designs have been under development at Bell Labs for several years, and the process technology to manufacture these sensors is well understood. In May we announced the first successful production of our prototypes in the Bell Labs clean room.

We expect to achieve substantial improvements in sensitivity by modifying the micro-scale magnetometers to include nano-scale features. These magnetometers can be used in metal detection and perimeter security applications for defense and homeland security. They can also be used healthcare systems and retail security like RFID tags.

The opportunities are enormous. Stay tuned for future development reports on the Nanobattery and our IPTV product, the mPhase TV+ System.

Sincerely,
Ron Durando
Ronald A. Durando,
President, Chief Executive Officer and Director
Mr. Durando, co-founder of mPhase Technologies, Inc., has been President and Chief Executive Officer of mPhase since the Company's inception in October 1996. In addition, he has been the Chief Operating Officer of Microphase Corporation since 1994. Prior to that, he was President and Chief Executive Officer of Nutley Securities, Inc., a registered broker-dealer. From 1982 to 1987, Mr. Durando worked as a Registered Representative for several securities brokerage firms. From 1973 to 1982, he held various positions at Nova Electric Manufacturing Company, including Head of Electromechanical Design... http://www.mphasetech.com/our_team.htm