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August 24, 2010 at 08:30 AM EDT
Telkonet SmartEnergy(TM) Selected by Climatec Energy Services for Yuma School District One Project
Climatec Continues Phase Two of a Three Phase Project With the Installation of Occupancy Based Lighting and HVAC Controls to Meet Guaranteed Energy Savings Goals

MILWAUKEE, WI -- (Marketwire) -- 08/24/10 -- Telkonet, Inc. (OTCBB: TKOI), a leading Clean Technology company committed to integrating intelligent networking and smart energy management solutions, announced today that its SmartEnergy™ system has been chosen as a component of an energy services contract awarded to Climatec Building Technology Group's Energy Services Division to provide Yuma School District One with automated solutions to reduce energy consumption. Networked Telkonet SmartEnergy is being deployed across five campuses within the district and will provide centralized system management and remote access. This system will enable access to raw data for third party energy measurement and verification of the savings guaranteed by Climatec Energy Services.

"We identified Telkonet as having a cost effective solution for reducing HVAC energy consumption in schools," said Steve Siverson, Vice President of Energy Services at Climatec Energy Services. "Telkonet SmartEnergy will help us meet our goals and provides access to the data we need to satisfy our obligations to the school district." As a certified member of The U.S. Green Building Council, Climatec Energy Services provides energy audits and affordable energy solutions across a number of vertical markets.

About Climatec

Since 1975, Climatec has been one of the southwest's leading providers of advanced building technologies for a wide variety of industries and buildings. Today there are more than 400 employees working in offices located in Phoenix and Tucson, Arizona; Albuquerque, New Mexico; and in Irvine, Riverside, and San Diego, California. Climatec consists of three divisions: Climatec Engineered HVAC Solutions, Climatec Energy Solutions, and Climatec Building Technologies Group. A unique blend of products, people and vision is the foundation of Climatec's success.
www.climatec.com

About Telkonet

Telkonet is a leading Clean Technology company, providing integrated intelligent utility networking and smart energy management technology to the emerging SmartGrid market, with a forward focus on the fast-growing Home Area Network (HAN) sector. Telkonet develops advanced solutions that reduce demand for new energy generation, delivering vital tools for controlling energy consumption. Telkonet is a leading occupancy-based energy management controls developer, with solutions lowering heating and cooling costs in hundreds of thousands of rooms worldwide. Telkonet also operates the EthoStream Hospitality Network, providing high-speed Internet access and proactive guest support to over 3.2 million users per month.
http://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 revenue 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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