July 16, 2007

EthoStream Selected By Choice Hotels Cambria Suites As Exclusive High-Speed Internet Access Provider

EthoStream, LLC, a Telkonet company (AMEX:TKO), operators of one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., and a preferred or endorsed provider for some of the world's largest hotel companies, has been named by the Cambria Suites brand, the upscale, select-service, all-suites brand from Choice Hotels International, as its exclusive broadband Internet access provider. The first Cambria Suites hotel opened in Boise, Idaho in April 2007, and the brand has executed domestic hotel franchise agreements for over 50 hotels. EthoStream will provide every hotel guest room with both wired and wireless Internet access, wireless access in the public areas, as well as customer support, system management and monitoring.

"We choose to align ourselves with quality partners that can provide the level of service that our guests expect, our franchisees expect and we expect," said Phil Beilke, senior director, brand management, Cambria Suites. "Selecting EthoStream made the most sense both financially, as well as from a service provider standpoint. By using one service provider, we can provide the consistency and control that we need as we develop a new brand. With EthoStream, we can centrally manage content on the hotels' Internet welcome page, log-in page, and subsequent pages, to deliver a consistent branded experience. We can also remotely monitor our guests' Internet experience, so we can ensure our properties are delivering the service that our hotel guests expect."

About Cambria Suites

Cambria Suites hotels are smoke-free and every suite features separate work and living areas with ergonomic chairs, movable desks, luxury linens, and Bath and Body Works(R) products. The all-suites hotels offer the latest in technology, including a 52-inch television in the open, airy two-story lobby and each suite includes two flat-screen LCD televisions, a CD/DVD player, and MP3 jacks. Select suites offer MediaHub(TM) plug-and-play technology allowing guests to connect their laptop, MP3 player, game console, digital camera, or CD/DVD player hassle-free. Free high-speed wired and wireless Internet access is available throughout the hotel, so that guests can stay connected when on the road.

For more information on Cambria Suites, visit cambriasuites.com.

About EthoStream

EthoStream, LLC is a technology solution provider targeting the hospitality and MDU/MTU verticals. Operating one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., EthoStream is a preferred or endorsed provider for some of the world's largest hotel franchisors.

Now offering solutions including VOD, VoIP, digital video surveillance, Internet connectivity and HSIA packages, EthoStream has developed the most comprehensive technology management platform available for the hospitality industry.

EthoStream has distanced itself from other providers in the hospitality HSIA field through the size of its EthoStream Hospitality Network, high quality of technology and support provided to network members, security of the network and overall guest satisfaction. Beyond claims made by competitors, as the premier hospitality HSIA provider, EthoStream has continued to lead the industry through end-to-end service and its high quality standards. To learn more about EthoStream's products, services and EthoStream Hospitality Network, please visit http://www.ethostream.com.

About Telkonet

Telkonet develops and markets technology for the high-speed transmission of secure voice, video and data communications over in-premise and shipboard electrical wiring. The revolutionary Telkonet iWire System utilizes proven powerline communications (PLC) technology to deliver commercial high-speed broadband access from an IP "platform" that is easy to deploy, reliable and cost-effective by leveraging a building's existing electrical infrastructure. 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 teleconferencing, IP surveillance, energy management and a host of other IT services. For more information, please visit www.telkonet.com.

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).