Telkonet's New Internet Pricing Packages Help Smaller Hotels Attract More Business Travelers; For the Business Traveler…a Day without the Internet is Like a Day without Sunshine

Business Wire, August 25, 2004

GERMANTOWN, Md. -- Telkonet, Inc. (Amex:TKO), the leader in commercial powerline communications (PLC), today unveiled two high-speed Internet packages designed to help smaller hotels build their business with business travelers. "In the hospitality world, the business traveler is a high-value commodity who represents repeat revenue and extended stays, which drive occupancy. To attract these lucrative customers, Internet access is a necessity. Our new high-speed Internet packages provide an affordable Internet solution for hotels with 150 rooms or less, a market which accounts for more than 90% of the hotels in the United States," said Sandeep Thakrar, Vice President of Hospitality Sales of Telkonet.

Telkonet's Smaller Hotel Package (50 rooms or less) is priced from $195 per month for 48 months. The Company's Standard Hotel Package (51 to 150 rooms) is priced from $295 per month for 36 months. Thakrar unveiled these special pricing packages at the Florida Hotel & Motel Association's 2004 Annual Convention and Trade Show at the Royal Pacific Resort at Universal Orlando in Orlando, Florida.

"With our Fresh New Approach to Internet Pricing, we have squeezed the excess costs out of Internet service and leveled the playing field for smaller hotels that now can make available to their guests the same commercial-quality, high-speed Internet access as larger hotels at a price they can afford. This approach is ideal for hospitality chains such as Best Value Inn, and Hospitality International and National Trust Historic Hotels of America, with whom Telkonet recently acquired approved vendor agreements," Thakrar said.

About Telkonet

A cost-effective alternative to hardwired or wireless local area networks (LANs), the Telkonet PlugPlus(TM) family of networking and internetworking products provides Internet connectivity over existing electrical wiring with no costly installation of additional wiring or disruption of business activity. Telkonet's PlugPlus system is designed for commercial and residential applications, including multi-unit dwellings, hotels and motels, and government. For more information, visit www.telkonet.com.

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).