For
Immediate Release: February 2, 2007
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NEWS
RELEASE
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Germantown,
MD, Telkonet, Inc. (AMEX: TKO), the leader in providing in-building
broadband access over existing electrical wiring, today
announced that it has completed a private placement of 4.0 million
shares
of its common stock to two institutional investors for gross proceeds
of
$10 million. The proceeds of this offering will be used for general
working capital needs and to assist in funding the company’s strategic
initiatives. Telkonet also has issued to these investors warrants
to
purchase 2.6 million shares of its common stock at an exercise price
of
$4.17 per share. These warrants expire five years from the date of
issuance.
The
common stock and warrants issued in the offering were sold pursuant
to the
exemption provided by Section 4(2) of the Securities Act of 1933
and/or
Rule 506 of Regulation D promulgated thereunder on the basis that
the
purchaser is an “accredited investor” as such term is defined in Rule 501
of Regulation D. Telkonet has agreed to file a registration statement
covering the shares of common stock and the shares issuable upon
exercise
of the warrants.
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 revolutionary Telkonet iWire System™
utilizes proven powerline communications (PLC) technology, 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 buildings existing electrical infrastructure. The building’s
existing electrical wiring becomes the backbone of the local area
network,
which converts virtually every
electrical outlet into a high-speed data port, without the costly
installation of additional wiring or major disruption of business
activity.
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.
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Contacts:
Michael
Porter
President
Porter,
LeVay & Rose, Inc.
212-564-4700
mike@plrinvest.com
www.plrinvest.com
Harrison
G. Wise
Rubenstein
Public Relations
212.843.8001
hwise@rubensteinpr.com
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