Ron Pickett, President of Telkonet, stated, �David brings over twenty years of success and expertise in the telecommunications industry to Telkonet. We are delighted to have David join the Telkonet management team, where he will be responsible for growing Telkonet�s business by delivering communications solutions that meet our customer�s needs for fast, reliable and secure high-speed Internet access.�

Prior to joining Telkonet, David served as Senior Vice President of the Network Enhancing Technologies Solutions division of Tellabs. He was President and COO of Coherent Communications Systems Corporation when it was acquired by Tellabs in 1998. During his 4 years as president and COO of Coherent, he was instrumental in growing the annual worldwide revenue from $30m to $100m.

Pete Musser, Chairman of Telkonet, stated, �I am proud of David's previous accomplishments while associated with Safeguard Scientifics and am certain that he will perform equally well as Chief Operating Officer of Telkonet.�

David Powell stated, �I am delighted for the opportunity to become a part of Telkonet�s superb team and the privilege of once again working along side Pete Musser. I greatly valued the guidance, encouragement and support Pete gave me during my 8 years at Coherent Communications Systems Corporation and I am looking forward to working with both Pete and Ron Pickett to develop Telkonet�s markets and revenue.�

Telkonet�s PlugPlusInternet� products deliver high-speed Internet access over standard electrical wiring, eliminating the need to rewire a building and enabling users to access the Internet from virtually any electrical outlet.

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 PlugPlusInternet family of Internet access products offers a viable and cost-effective alternative to the challenges of hardwiring and wireless local area networks (LANs). Telkonet PlugPlusInternet 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).