LITTLE FALLS, N.J., 21 August 2006. mPhase Technologies Inc. has announced that its Board of Directors has approved the spinout of its ultra-sensitive magnetometer business into a separately traded public company. The spinout is subject to shareowner approval.

The new company, to be led by a new CEO to be hired, could immediately leverage intellectual property, partnerships, and customer relations garnered in the 18-month magnetometer development program underway with Lucent Technologies Bell Labs.

A jointly-developed Micro-Electro Mechanical Systems (MEMS) prototype magnetometer has been shown to detect the presence of a metal object from more than 30 feet away. Detecting changes in magnetic fields, it could be applied to pinpoint the direction of magnetic objects.

The most recent test of a single uncooled sensor device involved detection of a simulated rifle from a distance of approximately 30 feet, indicating that an array of sensors may detect it from a far greater distance -- possibly 100 feet or more.

Initial applications for such magnetometers will be centered on national defense and homeland security.