Telkonet Comments on Stock Price

Business Wire, July 19, 2006

GERMANTOWN, Md. -- Telkonet, Inc. (AMEX:TKO), the leader in providing in-building broadband access over existing electrical wiring, today issued a comment about the company's stock price trend.

Ron Pickett, President and CEO, stated, "We recognize that the company's stock price in recent weeks has been under a lot of selling pressure. The company is not aware of any adverse business events that should affect the stock price. The company continues to aggressively pursue both contract and channel partner relationships. Our suite of FIPS-140-2 products has been approved for government use and we are finalizing installation procedures with a major Tier-1 systems integrator which will permit the integrator to use the products on an existing contract. We continue to aggressively pursue additional government subcontracting opportunities. We are in various stages of commercial trials with companies using our commercial products. I have returned from my medical leave, have been and will continue to be engaged in the day-to-day operations of the company."

About Telkonet

Telkonet develops and markets technology for the transmission of high-speed voice, video and data communications over the existing electrical wiring within a building. The revolutionary Telkonet iWire System(TM) utilizes proven powerline communications (PLC) technology, which enables the delivery of commercial high-speed broadband access from an IP "platform" that is easy to deploy, reliable and cost-effective by leveraging a buildings existing electrical infrastructure. The building's existing electrical wiring becomes the backbone of the local area network, which converts virtually every electrical outlet into a high-speed data port, without the costly installation of additional wiring or major disruption of business activity.

The Telkonet iWire System can be installed rapidly and offers a viable and cost-effective alternative to the challenges of hardwiring and wireless local area networks (LANs). Telkonet's products are designed for use in commercial and residential applications, including multi-dwelling units and the hospitality and government markets. Applications supported by the Telkonet "platform" include but are not limited to: VoIP telephones, Internet connectivity, local area networking, video conferencing, closed circuit security surveillance and a host of other information services. For more information, please visit www.telkonet.com.