EXHIBIT 99.1

TELKONET

For Immediate Release: August 2, 2005                               NEWS RELEASE
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                                            CONTACT:
                                            Michael Porter
                                            President
                                            Porter, LeVay & Rose, Inc.
                                            212-564-4700
                                            mike@plrinvest.com www.plrinvest.com

                                            Stephen Sadle
                                            Executive Vice President
                                            Telkonet, Inc.
                                            240-912-1800
                                            ssadle@telkonet.com


                  TELKONET'S COUPLER PATENT RECEIVES NOTICE OF
                 ALLOWANCE BY U.S. PATENT AND TRADEMARK OFFICE


GERMANTOWN, MD, TELKONET, INC. (AMEX: TKO), THE LEADER IN PROVIDING POWERLINE
NETWORKING SOLUTIONS USING EXISTING ELECTRICAL WIRING, today announced the
allowance of its patent application by the United States Patent and Trademark
Office. The patent application (U.S. Pat. App. No. 10/219,811), titled "Method
and Apparatus for Attaching Power Line Communications to Customer Premises,"
which will publish later this year, broadly claims the Telkonet Coupler, one of
Telkonet's proprietary building access technologies. The Telkonet Coupler
embodies a unique technique used for interfacing and coupling Telkonet's
communication devices into the three-phase electrical systems that predominate
in commercial buildings and facilities worldwide. Once the Coupler is installed,
the building's existing electrical wiring becomes the backbone of a local area
network, which converts virtually every electrical outlet into a high-speed data
port, without the costly installation of additional wiring or significant
disruption of business activity.

The Telkonet Coupler is an integral component to the revolutionary Telkonet
iWire System(TM) which enables the delivery of commercial high-speed broadband
access from an IP "platform" that is easy to deploy, reliable and cost-effective
by leveraging a building's existing electrical infrastructure. Applications
supported by the Telkonet "platform" include but are not limited to: VoIP
telephones, internet connectivity, local area networking, video conferencing,
closed circuit security surveillance and a host of other information services.

Stephen Sadle, Executive Vice President, Director and Co-Founder of Telkonet
said, "This Coupler patent is a significant addition to our proprietary product
portfolio. It is also an enhancement to the many real and practical solutions
designed, developed and deployed by our engineering staff, and validates our
approach to an efficient, cost effective entry to commercial structures for
Telkonet and a potential barrier to entry for competitors. Telkonet is
continually developing enhancements to its core technology for additional
functionality. We've focused our technology and our patent portfolio to reflect
breakthrough solutions that are designed to be workable in practice and
economical to produce in order to allow us to capture significant market share."

ABOUT TELKONET

Telkonet develops and markets technology for the transmission of high-speed
voice, video and data communications over the existing electrical wiring within
a building. The Telkonet iWire System can be installed rapidly and offers a
viable and cost-effective alternative to the challenges of hardwiring and
wireless local area networks (LANs). Telkonet's products are designed for use in
commercial and residential applications, including multi-dwelling units and the
hospitality and government markets. Applications supported by the Telkonet
"platform" include but are not limited to: VoIP telephones, internet
connectivity, local area networking, video conferencing, closed circuit security
surveillance and a host of other information services. For more information,
please visit www.telkonet.com.

Statements included in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve a number of risks and uncertainties such as competitive
factors, technological development, market demand and the Company's ability to
obtain new contracts and accurately estimate net revenues due to variability in
size, scope and duration of projects, and internal issues in the sponsoring
client. Further information on potential factors that could affect the Company's
financial results, can be found in the Company's Registration Statement and in
its Reports on Forms 8-K filed with the Securities and Exchange Commission
(SEC).