Telkonet Receives GOST-R Certification, Enabling Products to be Sold in Russia.

GERMANTOWN, Md. -- Telkonet, Inc. (AMEX:TKO), the leader in providing powerline networking solutions using existing electrical wiring, today announced that its high-speed Internet access system has received a Gosudarstvennyi Standart of Russia (GOST-R) certificate from the Russian Federation State Committee for Standardization, Metrology and Certification, or Gosstandart of Russia. The certificate No. POCCUS.MJ105B00033 6681827 was issued by ANO "Expertcertis" and is valid until June 12, 2008.

The GOST-R certificate verifies that the Telkonet iWire System(TM), which includes the Telkonet Gateway, the Telkonet Coupler, the Telkonet eXtender(TM) and the Telkonet iBridge(TM), were evaluated and were found to be in compliance with the safety requirements of relevant GOST-R standards by a Gosstandart-accredited certification body. It is mandatory for most products imported into Russia to have a GOST-R certification.

Ron Pickett, President of Telkonet, commented, "The GOST-R certification confirms that our products fulfill the requirements as defined in the Russian State Standard Certification System. This is a significant milestone for Telkonet, as we can now seek out and solidify partners and reseller arrangements that can begin marketing activities in Russia. Telkonet successfully demonstrated its Telkonet iWire System with prospective partners in Moscow in the fall of 2004. The Company has worked aggressively to secure in-country approval and we applaud the Russian system for its willingness to evaluate our new and innovative technology. Telkonet's vision from inception has been to offer our technology to the world as a global solution. Eastern Europe's emerging need for broadband solutions, combined with the architecture of its legacy buildings, provides an ideal opportunity for the Telkonet solution, which is installed without the need for invasive rewiring or disruptive construction of a building."

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 buildings 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 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).