Hotel Online  Special Report

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Telkonet’s High-Speed Internet Access System
Selected by MHI Hotels and ANM Hospitality
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Guests benefit from the security of a wired system
with the portability of wireless system
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Germantown, MD – September 7, 2004 - Telkonet, Inc. (Amex: TKO), the leader in commercial powerline communications (PLC) and the Company bridging the “Outlet to the Internet”, today announced that two hotel companies, MHI Hotels and ANM Hospitality, have selected Telkonet as their high-speed Internet access solutions provider for many of their hotel properties. MHI Hotels has installed Telkonet’s system in eight of their hotels, including Holiday Inns, located in Virginia, North Carolina, Georgia, and Florida. ANM Hospitality has signed a contract for nine properties in Michigan, Ohio, and Indiana, including Clarion, Days Inn, Best Value & Suites, Best Western, Comfort Inn and Baymont Inn.

Steve Smith, Executive Vice President, Operations of MHI Hotels, stated, “Telkonet’s high-speed Internet system meets my needs for cost, security, and scalability. Rewiring the hotels with CAT 5 was too expensive. Being able to provide Internet access over the hotels’ existing electrical wiring was both simple and affordable. Security is a major concern to business travelers that use their laptops, and I didn’t feel comfortable with a wireless solution. Telkonet’s system provides the best of both worlds: a secure, wired solution that has the portability of wireless, since guests can access the Internet wherever there’s an electrical outlet. In addition, Telkonet’s system can be easily expanded as my needs grow.”

Akram Namou, President of ANM Hospitality, commented, “I signed a contract with Telkonet to provide broadband access to my eight hotels because of their affordable Internet solution pricing package. Rather than having to pay a large, upfront bulk payment, I signed up for a monthly service contract that is cost-effective for my properties. Also, I felt comfortable choosing Telkonet since they are an endorsed vendor for Choice Hotels.”

Ron Pickett, President of Telkonet, added, “These recent hospitality contracts and other multiple sales are evidence that our marketing strategy to leverage a national base of individually-owned hotels into a national base of multiple hotel owners is working.”

Telkonet’s system uses powerline communications (PLC) technology to enable the transmission of data over existing electrical wires within a building. In doing so, it is not necessary to install new or dedicated wiring or cabling, resulting in simple and quick installation. Once the system is installed, virtually every power outlet throughout a hotel is converted into a high-speed data network. Hotel guests can access the Internet from electrical outlets throughout the hotel, including guest rooms, meeting rooms, and public areas. Guests can enjoy the portability of a wired system and the security of a wireline system, as data is encrypted and is secure from outside intrusion, ensuring that no users can access another user on the network.

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. 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).

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Contact:

Telkonet, Inc. 
6820 Hospital Drive
Baltimore, Maryland  21237
410.682.5300 Tel
401.682.5310 FAX
www.telkonet.com
sales@telkonet.com

Also See: Telkonet Expands Marketing Reach into Hospitality Industry; Telkonet to Offer High-Speed Internet Access to Best Value Inn, Hospitality International, and Historic Hotels of America / August 2004
Telkonet’s New Internet Pricing Packages Help Smaller Hotels Attract More Business Travelers / August 2004
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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