Dutton Associates Announces Investment Opinion: Telkonet Maintained At Strong Speculative Buy Rating; Quarterly Results Give Hint of Progress

Business Wire, Dec 14, 2006

EL DORADO HILLS, Calif. -- Headline of release should read: Dutton Associates Announces Investment Opinion: Telkonet Maintained At Strong Speculative Buy Rating; Quarterly Results Give Hint of Progress (sted Dutton Associates Announces Investment Opinion: Telkonet Speculative Buy Rating Maintained By Dutton Associates).

And in the second graph, the last sentence should read: We maintain our Strong Speculative Buy Rating and reaffirm our $4.00 per-share price target (sted We reiterate our Speculative Buy Rating and reaffirm our $4.00 per-share price target.)

The corrected release reads:

DUTTON ASSOCIATES ANNOUNCES INVESTMENT OPINION: TELKONET MAINTAINED AT STRONG SPECULATIVE BUY RATING; QUARTERLY RESULTS GIVE HINT OF PROGRESS

Dutton Associates continues coverage of Telkonet (AMEX:TKO) maintaining a Speculative Buy rating and a price target of $4.00. The 11-page report by Dutton Associates senior analyst Richard W. West, CFA, is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Since our Update Research Report, dated June 9, 2006, there have been several defining events that will impact Telkonet Inc.'s revenue and earnings in the coming quarters and years. These events discussed in the report include that Telkonet i) announced, that NuVisions began Internet Protocol Television (IPTV) trials in New York City, the first offering of IPTV in New York City, ii) announced that its reseller, Hotel Internet Services, installed a Telkonet iWire System[TM] on the Queen Mary, iii) announced the sale of its iWire System[TM] to a major U.S. utility, by its new division, Telkonet Energy Services, and iii) announced that its subsidiary MST's NuVisions (MST/NuVisions) brand of services has added several Trump properties to its growing list of residential customers in New York City. The potential for a significant increase in revenue and earnings for Telkonet in the coming quarters and years from any one of these areas appears to be great. We believe investors should not be deterred by the reported results for the third quarter and nine months, wherein the revenue and margins give only a hint of progress toward the necessary revenue mass for possible positive cash flow. We maintain our Strong Speculative Buy Rating and reaffirm our $4.00 per-share price target.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $35,000 from the Company for 4 reports commencing 1/19/2005, and do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.