Telkonet Helps Cut Guest Room Energy Costs in Nevada Motels with Sure Bet Program

Telkonet, Inc. (AMEX:TKO), the leading provider of innovative, centrally managed solutions for integrated energy management, networking, building automation and proactive support services, has now installed a total of 7 hotels with the Telkonet in-room, occupancy-driven Telkonet SmartEnergy™ system, as a preferred supplier under the Nevada’s NV Energy Sure Bet Program. The 256-room Americas Best Value Inn Las Vegas is the latest property to be installed with Telkonet’s system, which controls guest room heating and cooling usage based on occupancy, with savings expected to net $26,000 in the first year alone.

NV Energy’s Sure Bet program, which started in 2007, is designed to help smaller hotels achieve significant energy savings through heavily discounted energy efficiency products and free installation in qualifying facilities. The program focuses on improving energy efficiency across four key areas – guest room HVAC control, in-room lighting, common area lighting and vending machine controls. Based on the properties installed to-date in this program, energy savings have been estimated between 15 to 30%, with paybacks typically achieved in less than six months. The program is contributing substantially to increasing profitability, lowering overhead costs, and making the participating hotels more sustainable as businesses. Telkonet was selected as an alternative supplier for non remote capable units in March 2008, and has already retrofitted more than 800 rooms with its intelligent in-room energy management systems.

Sure Bet's Program Manager Mary Ann Sheehan regards Telkonet's latest installation at Americas Best Value Inn ("ABVI”) Las Vegas as a great example of how the program can deliver tangible energy savings. "This property was a prime candidate for Telkonet’s energy management controllers, as they can easily control the wide range of smaller-sized PTACs throughout the property that are not receptive to remote control. The Telkonet SmartEnergy system is all about simplicity – with quick, effortless installation, minimal training, intuitive operation for guests, and simple maintenance after the installation. Telkonet makes it effortless to start saving energy, and Americas Best Value Inn Las Vegas is already on track to significantly reducing its guest room HVAC energy costs."

For ABVI's Craig Leitch, Vice President of Operations, participating in the Sure Bet program and installing the Telkonet SmartEnergy system represented a sound decision. "The business case was compelling, with estimated electric bill savings of around 15%, which decreases total operating expense and increases overall profit. We were confident in working with Telkonet, as our preferred vendor to Americas Best Value Inn family of over 800 hotels for its high-speed Internet access solutions, and believe that this first property will clearly serve to illustrate the benefits of installing Telkonet's in-room energy management system to other ABVI properties."

Telkonet's involvement with the Sure Bet program represents one of a growing number of state and utility energy efficiency partnerships for the company, including Wisconsin’s Focus on Energy and Cool Control Plus. This activity forms a key component of Telkonet's forward strategy, underlining the company's commitment and success in delivering green energy solutions.

About Telkonet SmartEnergy

Telkonet SmartEnergy reduces the wasteful cooling and heating of unoccupied guest rooms using occupancy sensors, along with thermostats or PTAC controllers. With its patented Recovery Time™ technology, it maintains the most energy-efficient room temperature when vacant, and when occupied, returns to the guest's preferred temperature within a select number of minutes, set by property management.

With the Networked Telkonet SmartEnergy (NTSE), occupancy sensors and thermostats are linked together to form a wireless network, enabling information to be communicated between rooms, floors and properties, and centralized for detailed reporting and analysis. NTSE uses wireless ZigBee mesh technology to create a highly robust and reliable network that can be easily retrofitted for a fast, seamless installation, without the need for expensive back-haul wiring.

About NV Energy

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, now doing business as NV Energy, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, now doing business as NV Energy, the electric utility for most of northern Nevada and the Lake Tahoe area of California. NV Energy also distributes natural gas in the Reno-Sparks area of northern Nevada. For more details, visit the company's website at NVEnergy.com.

About Telkonet

Telkonet is the leading provider of innovative, centrally managed solutions for integrated energy management, wired and wireless networking, building automation and proactive customer support services. The company’s unique broadband networking solutions support more than 2 million network users per month, with its energy management systems dynamically lowering HVAC costs in over 95,000 rooms.

Telkonet's approach is designed to deliver complete system control and flexibility. Using the Software-as-a-Service (SaaS) model, Telkonet’s products are all networked, enabling local and remote access via Telkonet’s web-based platform, Telkonet CENTRAL. This essential management tool enables both property management and Telkonet customer support staff to monitor and manage all of Telkonet’s systems proactively in real time, reducing costs and streamlining network support.

Telkonet’s technology innovation is underpinned by the highest level of end-to-end quality of service, with comprehensive technical customer support. Telkonet’s platforms are widely deployed on the global stage – in single buildings and ships, in multi-building complexes, hospitality venues, multi-dwelling units, and utilities. www.telkonet.com

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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).