Exhibit
99.1
![](telkonet_logo.jpg) |
News
Release
|
Joe Noel,
240-912-1851
Michael
Wachs, CEOcast,
212-732-4300, mwachs@ceocast.com
Garrett
Axford, Georgina
Garrett / Simon Jones, 866-940-9987,
+44-1903-854900 mail@garrett-axford.co.uk
FOR
IMMEDIATE RELEASE
Telkonet
Continues Transformation with Corporate Realignment
Telkonet's
movement into clean technology supported through staff
changes
November
3, 2008: GERMANTOWN,
MD —Telkonet,
Inc. (AMEX:TKO
- - News), the
leading provider of innovative, centrally managed solutions for integrated
energy management, networking, building automation and proactive support
services, today announced that as part of its strategic long-range plan to
streamline operations and rationalize its cost structure, it is reducing its
corporate headcount at all levels, by approximately 5%. Telkonet’s acquisition
integration activities over the last 9 months have resulted in significant cost
savings and operational efficiencies. The Company expects this recent action to
result in estimated annualized cost savings of approximately $1.2 million per
year, which contributes to the Company’s goal of operating cash flow break-even
by the end of 2008.
Jason
Tienor, Telkonet Chief Executive Officer said, “A key finding of our strategic
review completed in the first quarter of 2008 was the need to realign and
streamline internal Company functions to enable the successful execution of our
long-range plan. We therefore have examined all areas of our business to
maximize efficiency and drive overall improved productivity and revenue growth.
We are making solid progress in achieving all of the objectives laid out in our
strategic long-range plan and are firmly on track to reach our stated goal of
operating cash flow break-even from ongoing core operations and deliver enhanced
shareholder value by the end of 2008. “
This
comprehensive audit of Telkonet’s performance and technologies initiated the
final phase of Telkonet’s evolution to becoming a clean technology company. The
current restructuring has facilitated the reduction of numerous positions
through combining staff responsibilities and migrating roles to resources
acquired during the most recent acquisitions. With Telkonet’s key growth taking
place within GREEN technology and the smart grid industry, these changes
leverage resources across the organization with a broad array of expertise and
knowledge in this area. With these new changes, the company expects to achieve
greater efficiency and more focused product integration targeting energy
conservation and the utility market.
Telkonet’s
newest PLC platform, Series 5, has been increasingly generating interest in the
Utility space mainly as a primary backhaul technology for substation
connectivity. Used as a platform for transformer and circuit connectivity for
monitoring and metering as well as digital surveillance connectivity, Telkonet’s
Series 5 technology provides a superior solution based on cost, performance and
implementation advantages. Telkonet continues to work with key strategic
partners to reach a larger audience in addition to conducting several product
rollouts within the space.
Telkonet’s
newest Networked SmartEnergy platform has also gained increasing recognition by
Utilities as an effective tool within Demand/Response and load shedding
initiatives. Built upon Telkonet’s previous platform for stand-alone energy
management, Telkonet SmartEnergy (TSE), NTSE is setting new standards for energy
management. Through working with Utility partners, Telkonet is able to mold the
NTSE platform to work closely with Utilities and their Smart Grid
implementations. This new corporate alignment takes advantage of Telkonet’s
engineering resources to drive the future development of its products to meet
the demands of the energy industry.
Through
the last year Telkonet has firmly repositioned itself as a clean technology
company with solutions focused firmly on the challenges faced by the energy and
utility markets. The evolution stems largely from its acquisitions of Smart
Systems International (SSI) and EthoStream in 2007. Product and market focus
have been driven significantly by the integration of the product and solution
platforms of all three companies. Through the last few years, power and water
utilities worldwide have begun to significantly invest in smart grid
technologies and infrastructure. The North American Electricity Reliability
Counsel forecasts that electricity demand will rise 19% by 2010 or the
equivalent of 141,000 megawatts, while only 57,000 megawatts of new resources
have been identified prior to that time. Smart grid and clean technologies are
seen as the most cost-effective way of meeting this forecasted demand as they
enable utilities to make more efficient use of current generation capacity as
opposed to having to source new energy supplies and resources.
About Telkonet
Telkonet
is the leading
provider of innovative, centrally managed solutions for integrated energy
management, wired and wireless networking, building automation and proactive
customer support services. The company’s unique broadband networking solutions
support more than 2 million network users per month, with its energy management
systems dynamically lowering HVAC costs in over 95,000 rooms.
Telkonet's
approach is designed to deliver complete system control and flexibility. Using
the Software-as-a-Service (SaaS) model, Telkonet’s products are all networked,
enabling local and remote access via Telkonet’s web-based platform, Telkonet
CENTRAL. This essential management tool enables both property management and
Telkonet customer support staff to monitor and manage all of Telkonet’s systems
proactively in real time, reducing costs and streamlining network
support.
Telkonet’s
technology innovation is underpinned by the highest level of end-to-end quality
of service, with comprehensive technical customer support. Telkonet’s platforms
are widely deployed on the global stage – in single buildings and ships, in
multi-building complexes, hospitality venues, multi-dwelling units, and
utilities. www.telkonet.com
All
company, brand or product names are registered trademarks or trademarks of their
respective holders.
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).