February 2, 2007 – Telkonet, Inc. (AMEX:TKO), the leader in providing in-building broadband access over existing electrical wiring, today announced that it has completed a private placement of 4.0 million shares of its common stock to two institutional investors for gross proceeds of $10 million. The proceeds of this offering will be used for general working capital needs and to assist in funding the company’s strategic initiatives. Telkonet also has issued to these investors warrants to purchase 2.6 million shares of its common stock at an exercise price of $4.17 per share. These warrants expire five years from the date of issuance. Bryant Park Capital acted as financial advisor and placement agent to Telkonet in connection with this transaction.