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.