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Telkonet and First Step Internet Provide University Students with Broadband Internet Access
[September 15, 2005]

Telkonet and First Step Internet Provide University Students with Broadband Internet Access

GERMANTOWN, Md. --(Business Wire)-- Sept. 15, 2005 -- Telkonet, Inc. (AMEX:TKO), the leader in providing powerline carrier (PLC) networking solutions using existing electrical wiring, today announced that Telkonet, in partnership with First Step Internet, has deployed the Telkonet iWire System in Washington State University's student housing units. Telkonet and First Step Internet, an Internet Service Provider, are joining forces to market broadband Internet access to multidwelling units in northern Idaho and eastern Washington. Under the partnership, First Step Internet will provide the Internet service and Telkonet will deliver broadband Internet access using its proven powerline carrier communications technology. The Telkonet iWire System(TM), with its patented PLC technology, provides in-building broadband Internet and network access over a building's existing electrical wiring.

First Step Internet's first installation of the Telkonet iWire System was completed in July at the Terrace Apartments, part of Washington State University's student housing. Mike Hall, Area Sales Manager of First Step Internet, commented, "The Telkonet iWire System is ideal for older apartments, such as the Terrace that was built in the late 1950's, where it would be cost-prohibitive to retrofit with CAT-5 or even to install wireless. As Telkonet's system uses a building's existing electrical infrastructure for Internet delivery, it eliminates the need to install new wiring. By offering the Telkonet iWire System, we can now round out our offerings to provide both old and new complexes with Internet service."

Bob Tattershall, Director of Housing and Conference Services, explained, "We initially installed wireless in some of our student housing complexes, but found we were constantly getting complaints from unhappy users due to inconsistent coverage. There are many different complicated factors involved when providing wireless access in a large complex, and these cannot be totally overcome. Wireless requires a new infrastructure to be deployed throughout an entire complex, but with Telkonet, the electrical infrastructure already exists. The comparative cost for Telkonet's system was about 20% that of wireless, and best of all, we can provide students with secure and reliable Internet access from every power outlet in every room. Furthermore, students do not need a land line with the Telkonet system - a major plus since many students only have cellular phones. When word got out that the Terrace apartment complex was offering wired Internet access, two families moved from their apartment complex into the Terrace complex - a true testament to the demand for reliable and secure high-speed Internet access."

About First Step Internet

First Step Internet began offering dial-up Internet access in 1994 with the idea of making Internet access available to virtually everyone. First Step Internet enabled the communities of the Inland Pacific Northwest to take advantage of the new opportunities arising in e-commerce. First Step Internet has matured to being an ISP that services areas in Central Washington and Idaho. With the rise in broadband, the products of First Step Internet have grown to include Frame Relay, DSL and Fixed Wireless Internet service. Through continuous expansion, First Step Internet has grown to be the region's largest local user based Internet service provider by supplying the lowest cost and highest quality connectivity available. First Step Internet has installed wireless and wired networks in over 3,500 apartments. For more information please visit

About Telkonet

Telkonet develops and markets technology for the transmission of high-speed voice, video and data communications over the existing electrical wiring within a building. The revolutionary Telkonet iWire System(TM) utilizes proven powerline communications (PLC) technology, which enables the delivery of commercial high-speed broadband access from an IP "platform" that is easy to deploy, reliable and cost-effective by leveraging a buildings existing electrical infrastructure.

The building's existing electrical wiring becomes the backbone of the local area network, which converts virtually every electrical outlet into a high-speed data port, without the costly installation of additional wiring or major disruption of business activity.

The Telkonet iWire System can be installed rapidly and offers a viable and cost-effective alternative to the challenges of hardwiring and wireless local area networks (LANs). Telkonet's products are designed for use in commercial and residential applications, including multi-dwelling units and the hospitality and government markets. Applications supported by the Telkonet "platform" include but are not limited to: VoIP telephones, Internet connectivity, local area networking, video conferencing, closed circuit security surveillance and a host of other information services. For more information, please visit

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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