Telkonet and Balywho Team to Provide Internet-Enabled Displays in Elevators

Business Wire, Dec 2, 2004

GERMANTOWN, Md. -- Telkonet, Inc. (Amex:TKO), the leader in providing in-building broadband access over existing electrical wiring, today announced it has teamed with Balywho, Inc. to provide Internet-enabled TV-like displays in elevators in multi-dwelling unit residential buildings and multi-tenant commercial buildings in a nation-wide program. Balywho is a Virginia-based supplier, operator and programmer of Internet-enabled media solutions in elevators for high-rise commercial, residential and hotel properties. Telkonet will supply the in-building broadband Internet connectivity to Balywho using its powerline communications technology (PLC) that delivers the Internet signal within buildings over existing electrical wiring.

The Whitney at Bethesda Theatre, a 250-unit luxury apartment complex located in Bethesda, Maryland and managed by the Bozzuto Management Company, is the first property in the nation to deploy PLC broadband enabled displays in their elevators.

Kelly Jones, property manager of The Whitney at Bethesda Theatre, commented, "Our new elevator TV displays have proven to be an ideal way for us to communicate to our residents, keeping them informed with timely building related information, as well as weather, news and sports, plus advertisements from local restaurants and other services. All of this helps us to better serve our residents."

"By teaming with Telkonet, we now have an easy to deploy and cost-effective solution to in-building high-speed Internet access," said Sean Cease, president, CEO and chairman of the board of Balywho. "Telkonet's system, which uses the building's existing electrical wiring for Internet connectivity, eliminates problems we encountered when using a traditional wired (Cat 5) or wireless solution. Running wires to an elevator can be extremely expensive. Telkonet's system can be deployed rapidly - typically within a day - without rewiring, significantly reducing installation costs, and unlike wireless, with Telkonet's system we are assured of a reliable and secure Internet connection."

About Balywho

Balywho Inc., headquartered in Falls Church, Virginia, is a supplier, operator and programmer of Internet-enabled media solutions in elevators for high-rise commercial, residential and hotel properties. Balywho installs TV-like display screens in elevators, programs content to these devices and sells advertisements. Balywho has displays deployed in five major markets with on-going plans to expand into other major markets.

About Telkonet

Telkonet's products provide connectivity over existing electrical wiring and do not require the costly installation of additional wiring or major disruption of business activity. In many situations, the Telkonet system can be implemented more quickly and less expensively than adding dedicated wiring or installing a wireless system. The Telkonet PlugPlus family of networking and internetworking products offers a viable and cost-effective alternative to the challenges of hardwiring and wireless local area networks (LANs). Telkonet PlugPlus products are designed for use in commercial and residential applications, including multi-dwelling units and the hospitality and government markets. For more information, please 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).