For Immediate Release: April 23, 2007 |
NEWS
RELEASE
|
Telkonet
Responds to Correspondence from the
American
Stock Exchange
Announces
the Appointment of a New Independent
Director
|
Germantown,
MD, Telkonet, Inc. (AMEX: TKO), the leader in providing in-building
broadband access over existing electrical wiring, today
announced that on April 17, 2007, Telkonet, Inc. (the “Company”) received
notification from the American Stock Exchange (“AMEX”) that the Company is
not in compliance with Section 120 and Section 121(A) of the
AMEX Company
Guide. Specifically, AMEX has taken the position that certain
of the
Company’s related party transactions were not reviewed by the Company’s
Audit Committee or a comparable body of its Board of Directors
as required
by Section 120 and the Company does not have a sufficient number
of
independent directors such that a majority of its board of directors
is
deemed to be “independent” as such term is defined in the AMEX Company
Guide.
Although
the Company reasonably believes that it meets the AMEX continued
listing
standards and provided AMEX with a written analysis to support
this
belief, AMEX has declined to adopt the Company’s position and has
instructed the Company to submit a plan of compliance no later
than May 1,
2007 advising AMEX of the action it has taken, or will take,
to bring the
Company into compliance with Sections 120 and 121(A) of the AMEX
Company
Guide.
Immediately
following receipt of AMEX’s letter, in connection with formulating the
Company’s plan of compliance, the Company’s Chief Executive Officer and
Chairman of the Board of Directors commenced a search for a new
independent board member. On April 23, 2007, the Board of Directors
held a
meeting at which Stephen L. Sadle, the Company’s Senior Vice President and
a non-independent board member, resigned and Anthony J. Paoni
was elected
to fill the board seat vacated by Mr. Sadle. The Board of Directors
has
determined that Mr. Paoni is “independent” as defined in the AMEX Company
Guide.
Ron
Pickett, President and CEO of Telkonet, stated, “Although the Board of
Directors believes that the Company meets all of the continued
listing
criteria required by AMEX, and provided to AMEX the Company's
detailed
analysis of this issue in dialogue with AMEX representatives,
we were
disappointed to learn that AMEX disagreed with our position.
We have taken
immediate action to remedy what AMEX concluded was the Company's
noncompliance with certain continued listing requirements. As
a result of
the actions the Company's Board of Directors has taken today,
the board
believes it has fully remedied the compliance issues raised by
AMEX. The
Company will continue to work directly with AMEX to conclude
this
matter."
Mr.
Paoni, the Company’s new independent director, has been a faculty member
at Northwestern University’s Kellogg School of Management since 1996.
Previously, he spent 28 years in the
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Contacts:
Michael
Porter
President
Porter,
LeVay & Rose, Inc.
212.5644700
mike@plrinvest.com
www.plrinvest.com
Harrison
G. Wise
Rubenstein
Public Relations
212.8438001
hwise@rubensteinpr.com
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