Telkonet Launches Next Generation Networked Energy Management Solution at HITEC (Hospitality Industry Technology Exposition & Conference)

Gives Property Managers a New Level of Green HVAC Control, Delivering Tangible Energy Savings

GERMANTOWN, Md.--

Telkonet, Inc. (AMEX:TKO), the leading provider of innovative, centrally managed solutions for integrated energy management, networking, building automation and proactive support services, is dynamically evolving energy management efficiency, with the launch of the advanced Networked Telkonet Smart Energy (NTSE) platform. Building on the proven capabilities of the Telkonet SmartEnergy system, incorporating Telkonet's unique patented Recovery Time(TM) technology, NTSE advances intelligent HVAC building control with a flexible, resilient and low-cost energy management platform. NTSE gives property owners the tools to identify and implement energy savings, providing total visibility and detailed data about a property's HVAC system and its energy consumption, together with real-time, instant remote management capabilities.

With HVAC costs typically accounting for more than 50% of a building's electricity overhead, controlling in-room energy consumption is a prime requirement. With NTSE, Energy Management Occupancy Sensors and Thermostats are linked together to form a wireless network, enabling information to be communicated between rooms, floors and even properties, and centralized for detailed reporting and analysis. Key to the NTSE concept is the ability to use existing Internet/intranet infrastructures, thereby increasing a properties return on investment. NTSE uses wireless Zigbee IEE802.15.4 mesh technology to create a highly robust and reliable network that can be easily retrofitted for a fast, seamless installation, without the need for expensive back-haul wiring. It delivers a robust, instantly scalable, and self-healing networked energy management system that delivers optimum energy savings without any compromise to occupant comfort.

NTSE provides a wide range of essential monitoring and analysis features, giving property management the all-important control over every facet of a building's energy consumption. Key features include:

    --  Wireless retrofit for fast, simple installation

    --  Simple integration with Property Management Systems (PMS)

    --  Room occupancy status detection

    --  Peak demand load shedding

    --  Real-time central and remote HVAC monitoring, diagnosis and
        control

    --  Proactive issue response

    --  Management energy savings reports

    --  Detailed measurement and verification analysis

NTSE introduces a new approach to intelligent energy management technology, as Telkonet's EVP of Energy Management, Jeff Sobieski, explains, "NTSE takes our proven Telkonet SmartEnergy system to the next level, creating an integrated core network with the control facilities usually associated with high-end building automation systems. NTSE is a critical weapon in a property management's armory for tackling rising energy costs and controlling consumption, delivering an extremely rapid return on investment, usually within 2 to 3 years. Our focus is on maximizing a property's existing investment, whether in the electrical infrastructure or a communications platform, and using that as the platform to deliver additional green energy-saving tools. NTSE epitomizes our development philosophy."

NTSE realizes tangible energy savings by deploying Telkonet Energy Management Occupancy Sensors with smart, programmable Telkonet Energy Management Thermostats, to adjust and maintain a room's temperature according to occupancy, and avoiding any unnecessary heating or cooling of vacant rooms. Additionally, the system reduces the run-time for heating, ventilation and cooling equipment, decreasing maintenance overheads and extending the equipment's working life. Each device on the NTSE mesh network functions as a wireless repeater, enabling efficient communication between Energy Management Thermostats, as well as the ability to aggregate communications up to a single master Telkonet Gateway Server located on-site.

With NTSE, facility management have local and remote access to comprehensive management and reporting tools, delivered via the Telkonet CENTRAL Management Platform, which is securely accessible from any web browser. This ranges from viewing room status and occupancy in real-time, to defining rules and events for HVAC system operability. Telkonet CENTRAL provides a system-wide overview, without the need for any proprietary software, plug-ins or per-seat licensing. Changes are implemented instantly across the network, maximizing savings and ROI, as well as maintaining efficient operation.

Networked for Performance: NTSE Detailed Overview

NTSE polls data from the devices on the network every 15 minutes, with its comprehensive reporting and monitoring features including:

    --  Room occupancy detection, enabling unsold rooms to be
        maintained at the most energy-efficient temperature and only
        brought up to temperature when a room is sold.

    --  Proactive issue response, with NTSE detecting changes in the
        operational effectiveness of HVAC equipment to resolve issues
        quickly and effectively.

    --  Detailed energy management reports, providing facility
        management with detailed measurement and verification (M&V)
        analysis, to identify the system's achieved savings and ROI.

    --  Energy management thermostat operation profiles, including
        default, maintenance, deep setback and demand, can be easily
        adjusted via Telkonet CENTRAL Management Console

    --  System status screen, enabling facility managers to view,
        monitor and change thermostat settings online via a virtual
        thermostat.

    --  Energy management thermostat savings reports, generated and
        stored across three years, for occupancy data, runtime and
        savings.

    About Telkonet

Telkonet's unique broadband networking solutions currently support more than 1.6 million network users per month, with its energy management systems optimizing energy consumption in over 80,000 rooms. Telkonet's technology innovation is underpinned by the highest level of end-to-end quality of service, with comprehensive technical customer support. Its systems deliver wide-ranging functionality, from wired and wireless high-speed Internet access to energy management, IP surveillance and local area networking. Telkonet's platforms are widely deployed on the global stage - in single buildings and ships, in multi-building complexes, hospitality venues and multi-dwelling units, and at government, education and defense locations.

Telkonet's innovations include the revolutionary Telkonet Series 5 and the Telkonet iWire System(TM), which convert a site's existing internal electrical infrastructure into an IP network backbone - quickly, cost-effectively and without disruption. The portfolio also includes the integrated EthoStream product suite, providing a comprehensive and advanced technology management platform for the hospitality industry, differentiated by outstanding remote management tools and a dedicated customer support facility. Telkonet SmartEnergy(TM) completes the line-up, delivering typical bottom line savings of 30% by controlling in-room energy consumption according to occupancy. For more information, please visit 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).

Source: Telkonet, Inc.

Released June 17, 2008