For Immediate Release: October 19, 2007 |
NEWS
RELEASE
|
Telkonet
Announces Strategic Investment in
1-800-905-GEEK
Companies
to target residential and small business broadband over powerline
market
|
Germantown,
MD, Telkonet, Inc. (AMEX: TKO), the leading technology solutions
provider
for broadband networking, end-to-end service support and energy
management, today announced a strategic investment in
1-800-905-GEEK, the nation's premier provider of on-site computer
services. Under the terms of the stock purchase agreement, Telkonet
has
acquired a 30% stake in the company from several stockholders of
1-800-905-GEEK in exchange for 2,940,200 shares of Telkonet common
stock
valued at approximately $4.5 million. The number of shares issued
in
connection with this transaction was determined using a per share
price
equal to the average closing price of the Telkonet common stock
on the
American Stock Exchange (AMEX) during the ten trading days immediately
preceding the closing date. The number of shares is subject to
adjustment
on the date Telkonet files a registration statement for the shares
issued
in this transaction, which must be occur no later than the 90th
day following
the closing date. The up or down adjustment to the number of shares
issued
will be determined using a per share price equal to the average
closing
price of the Telkonet common stock on the AMEX during the ten trading
days
immediately preceding the date the registration statement is filed.
The
strategic investment is designed to further strengthen the commitment
between the two companies to bring Telkonet's family of broadband
networking and energy management products to the small business
and
residential markets.
Earlier
this year, Telkonet and 1-800-905-GEEK announced a customized private
label product specifically designed for 1-800-905-GEEK’s residential and
small business markets. This product, the GEEK LINK SYSTEM, is
now fully
developed, and shipments have already begun to fulfill initial
orders.
The
GEEK LINK SYSTEM, which is based on Telkonet’s in-building powerline
communications (PLC) technology, enables high-speed Internet access
and IP
connectivity using a building’s internal electrical wiring. Telkonet has
designed a major modification for the GEEK LINK SYSTEM to enable
easy
installation into the home and small business environments. Whereas
Telkonet’s commercial version of its PLC technology requires installation
by a licensed electrician, the GEEK LINK SYSTEM makes use of a
unique
technology innovation that will allow the product to interface
with the
building’s electrical wiring by simply plugging it into any ordinary
electrical outlet. Once the GEEK LINK SYSTEM is installed and configured,
it can be leveraged to enable robust Internet access, security
camera,
VoIP and energy management applications from any ordinary electrical
outlet in the building.
(more)
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Contacts:
Joe
Noel
Telkonet
240.912.1851
Andrew
Hellman
CEOcast
212.732.4300
adhellman@ceocast.com
Georgina
Garrett/Simon Jones
Garrett
Axford
+44.1903.854900
mail@garrett-axford.co.uk
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