Dyess Air Force Base Chooses Telkonet SmartEnergy for Energy Efficiency Project

Dyess Air Force Base Chooses Telkonet SmartEnergy for Energy Efficiency Project

Telkonet's Patented SmartEnergy Technology Selected to Maximize Energy Savings Within Military Housing

MILWAUKEE, WI -- (MARKET WIRE) -- 09/20/10 -- Telkonet, Inc. (OTCBB: TKOI), a leading provider of occupancy-based energy efficiency solutions, has been chosen to provide its patented SmartEnergy technology to lower energy costs while maximizing soldiers' comfort. With its continuing emphasis on energy conservation and cost reduction, Dyess AFB will be implementing Telkonet's patented Recovery Time technology to conserve energy when military dormitory rooms are unused. Since heating and cooling comprise one of the largest in-building energy costs, SmartEnergy will allow Dyess AFB to dramatically reduce its overall energy consumption. Dyess AFB trialed Telkonet SmartEnergy in 44 dormitory room units for over one year. That trial produced run time savings of over 29% in the installed units. The success of the trial led Dyess AFB to move forward with the current $535,000 installation of Telkonet SmartEnergy into an additional 844 dormitory rooms.

"We are implementing the SmartEnergy occupancy-based energy management system as part of our continuing energy efficiency initiatives and reaching new heights in cost reduction and reduced energy consumption," stated Tom Denslow Dyess Base Energy Manager.

Dyess Air Force Base, located in Abilene, TX, is the home of all initial B-1B combat crew training, two combat squadrons, a weapons school and a B-1B test and evaluation squadron. In 2008, Dyess Air Force Base was able to save more than 160 million gallons of water and reduced energy consumption by 16.5 percent, saving more than $1 million and as a result earned the 2009 Department of Energy's Federal Energy and Water Management Award.

"We are again proud to be selected by a US military installation for our SmartEnergy energy efficiency technology," stated Jeff Sobieski, Telkonet's COO. "We continue to provide proven savings based on our patented Recovery Time technology and look forward to assisting Dyess Air Force Base expand its energy efficiency initiatives and increase base savings."

About Telkonet SmartEnergy

Telkonet SmartEnergy (TSE) is an intelligent, occupancy-driven in-room energy management system that uses a combination of occupancy sensors, along with intelligent programmable thermostats or PTAC controllers to improve energy efficiency, ensuring rooms are never excessively hot or cold when an occupant returns to the room. Its patented Recovery Time™ technology takes into account a diverse range of factors to determine each room's energy efficient temperature, restoring the temperature to the users' desired comfort setting within minutes of returning to a room. TSE has been proven to deliver a rapid return on investment, typically achieving quantifiable savings of 30% and more by eliminating the wasteful heating and cooling of unoccupied rooms.

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Media Contacts:
Telkonet Investor Relations
240.912.1811
ir@telkonet.com