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Telkonet Expands Marketing Reach into Hospitality Industry
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Telkonet to Offer High-Speed Internet Access to Best Value Inn, 
Hospitality International, and Historic Hotels of America
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Germantown, MD, August 5, 2004, Telkonet, Inc. (Amex: TKO), the leader in commercial powerline communications (PLC) and the Company bridging the “Outlet to the Internet”, now has approved vendor agreements from Best Value Inn, and Hospitality International and National Trust Historic Hotels of America, to offer its high-speed Internet access system to their hotel owners. These new agreements are in addition to Telkonet’s endorsed vendor agreements already in place with Choice Hotels and Interstate Hotels and Resorts.

Sandeep Thakrar, Vice President, Hospitality Sales, stated, “Adding access to an additional 65,000+ rooms from these hotels by way of our preferred vendor status significantly increases our reach into the hospitality market. We are committed to helping these hotels increase their occupancy by attracting more leisure and business travelers who are now demanding high-speed Internet access when they are away from their homes or offices. Telkonet currently has 10,900 hotel rooms under contract and enabled with the Telkonet high-speed solution, which delivers affordable and reliable business quality high-speed Internet to every guest room with access at every electrical outlet throughout a hotel. We are targeting hotels of 150 rooms or less with a complete Internet solution package that can be rapidly installed without disruption to their business.”

Best Value Inn has 400 inns, hotels and suites in 47 states, Canada, and Mexico, representing 25,000 rooms. Best Value Inn, five years old, is the fastest growing hotel chain in America. Hospitality International has 276 inns with 12,495 rooms in 36 states, including Canada and the Bahamas, including Red Carpet Inns, Scottish Inns, Passport Inns, Master Hosts Inns and Resorts, and Downtowner Inns.

National Trust Historic Hotels of America includes 202 hotels and resorts represents nearly more than 27,000 rooms, located in 41 states, the District of Columbia, Puerto Rico and Canada.

Historic Hotels of America ranks as one of the top 20 largest hotel consortia, according to Hotels magazine. Historic Hotels of America is a marketing association of hotels selected by the National Trust for Historic Preservation, which are noted for historic integrity, architectural quality and outstanding preservation efforts made by their owners and managers. Choice Hotels, Choice Hotels International, is one of the world’s largest lodging franchisors, with 300,000-plus rooms in 3,723 hotels in the United States, which include Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Econo Lodge, Rodeway Inn.

Interstate Hotels & Resorts operates approximately 275 hospitality properties with more than 61,000 rooms in 40 states, the District of Columbia, Canada, Russia and Portugal.

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.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

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Contact:
Telkonet, Inc.
20374 Seneca Meadows Pkwy. 
Germantown, Maryland 20876-7004
240.912.1800 Sales Office
www.telkonet.com
sales@telkonet.com
Also See: Telkonet Gains Hospitality Market Traction; Hotels In 30 States Under Contract To Install Telkonet's High-Speed Internet System / December 2003
Is PLC the easiest way to high-speed Internet in the guest room?  / One-on-One Audio Interview with
David Powell / October 2003
WyteStone Suites in Fredericksburg, Virginia Was Built in 1995 with Standard CAT 3 Wiring; Read How
the Owner Made this Hotel High-Speed-Ready / November 2003
Telkonet and ILC Provide High-Speed Internet Access to the Canadian Market; Field Trials in Process with two Major Hotels in Vancouver / November 2003
Telkonet’s High-Speed Internet Access System Featured at Historic Hotels Annual Meeting; PlugPlusInternet System Enables Easy Installation for Internet Access / October 2003
Telkonet to Showcase High-Speed Internet Access Solution at HFTP Annual Conference / October 2003
Telkonet Receives First Order From Noment Networks; Delivers High-Speed Internet Access to Luxury High-Rise Apartment / Oct 2003


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