Telkonet Helps Cut Guest Room Energy Costs in Nevada

Americas Best Value Inn (ABVI) in Las Vegas on target to realize energy savings

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. November 06, 2008

GERMANTOWN, MD, November 5, 2008. Telkonet, Inc. (AMEX:TKO), the leading provider of innovative, centrally managed solutions for integrated energy management, networking, building automation and proactive support services, has now installed a total of 7 hotels with the Telkonet in-room, occupancy-driven Telkonet SmartEnergyTM system, as a preferred supplier under the Nevada's NV Energy Sure Bet Program. The 256-room Americas Best Value Inn Las Vegas is the latest property to be installed with Telkonet's system, which controls guest room heating and cooling usage based on occupancy, with savings expected to net $26,000 in the first year alone.

NV Energy's Sure Bet program, which started in 2007, is designed to help smaller hotels achieve significant energy savings through heavily discounted energy efficiency products and free installation in qualifying facilities. The program focuses on improving energy efficiency across four key areas - guest room HVAC control, in-room lighting, common area lighting and vending machine controls.

Based on the properties installed to-date in this program, energy savings have been estimated between 15 to 30%, with paybacks typically achieved in less than six months. The program is contributing substantially to increasing profitability, lowering overhead costs, and making the participating hotels more sustainable as businesses. Telkonet was selected as an alternative supplier for non remote capable units in March 2008, and has already retrofitted more than 800 rooms with its intelligent in-room energy management systems.

Sure Bet's Program Manager Mary Ann Sheehan regards Telkonet's latest installation at Americas Best Value Inn ("ABVI") Las Vegas as a great example of how the program can deliver tangible energy savings. "This property was a prime candidate for Telkonet's energy management controllers, as they can easily control the wide range of smaller-sized PTACs throughout the property that are not receptive to remote control. The Telkonet SmartEnergy system is all about simplicity - with quick, effortless installation, minimal training, intuitive operation for guests, and simple maintenance after the installation. Telkonet makes it effortless to start saving energy, and Americas Best Value Inn Las Vegas is already on track to significantly reducing its guest room HVAC energy costs."

For ABVI's Craig Leitch, Vice President of Operations, participating in the Sure Bet program and installing the Telkonet SmartEnergy system represented a sound decision. "The business case was compelling, with estimated electric bill savings of around 15%, which decreases total operating expense and increases overall profit. We were confident in working with Telkonet, as our preferred vendor to Americas Best Value Inn family of over 800 hotels for its high-speed Internet access solutions, and believe that this first property will clearly serve to illustrate the benefits of installing Telkonet's in-room energy management system to other ABVI properties."

Telkonet's involvement with the Sure Bet program represents one of a growing number of state and utility energy efficiency partnerships for the company, including Wisconsin's Focus on Energy and Cool Control Plus. This activity forms a key component of Telkonet's forward strategy, underlining the company's commitment and success in delivering green energy solutions.