Telkonet and RapidDSL & Wireless Form Partnership to Serve the MDU Market

Completed First Deployment of Combined Broadband Internet Solution


For Immediate Release:


Germantown, MD, October 6, 2004, Telkonet, Inc. (Amex: TKO), the leader in commercial powerline communications (PLC) and the Company bridging the “Outlet to the Net,” announced today its newly formed partnership with RapidDSL & Wireless, an independently-owned, next-generation Internet service provider (ISP) serving the Maryland, Virginia and DC markets. RapidDSL uses fixed wireless broadband to provide Internet service to multidwelling/ multitenant (MDU/MTU) buildings, while Telkonet uses the buildings’ existing electrical wiring to deliver broadband Internet access inside the buildings using powerline communications (PLC) technology. This complete broadband Internet package enables property owners and managers to offer a reliable, cost-effective Internet solution to their residents, helping to ensure resident attraction, satisfaction and retention.

RapidDSL and Telkonet completed the first installation with their combined Internet solution at The Lafayette, a garden-style condominium complex in Falls Church, Virginia. The condominium consists of 8 buildings, 6 stories each, with 400 units in total. RapidDSL installed radio antennas on the roof of each of the eight multitenant buildings, pointed the antennas to a neighboring cell site, where a wireless link connects them to the Internet. Then, within three days with a single man crew, the Telkonet PlugPlus system was installed, distributing broadband Internet access within the buildings, using the electrical grid already in place, enabling Internet access at every electrical outlet in all of the 400 units.

Tom DeReggi, President of RapidDSL, explains, “The major challenge that we faced was that the condominium buildings consisted of thick concrete walls and floors, with steel plate reinforcements. Because of this, finding paths to run new cable to each condominium would have been nearly impossible, adding significant cost, being overly cumbersome, not to mention disruptive to residents with the noise from the drilling.”

Tom DeReggi continues, “Wireless technology could not successfully penetrate the exterior walls, interior walls, or floors, and where it could penetrate, the concrete would cause severe reflections and interference, degrading performance. In addition, it would not have been cost-efficient to deploy wireless based on the number of Wireless Access Points (WAPs) that would have been required.”

“Telkonet’s PLC technology perfectly compliments our wireless technology. It addresses all the major needs that are necessary to successfully distribute Internet service through a residential multitenant building. By using the combination of wireless (outdoors) connecting the buildings and Telkonet (indoors) within the buildings, we are able to deliver a value proposition unmatched by any other technology,” concluded Tom DeReggi.

About RapidDSL & Wireless

RapidDSL, Inc. is an independently-owned, next-generation Internet service provider (ISP) serving the Maryland, Virginia and DC markets. RapidDSL delivers fixed wireless broadband to neighborhood businesses and residential complexes by installing radio antennas on the roofs of  tall tenant buildings, interconnecting major cities and communities. The company’s telco-free operation allows for quicker installations, lower costs, and higher performance, aggregating data direct to the source, bypassing congestion points usually associated with telco-based Internet providers. Information can be found at www.rapiddsl.net.


About Telkonet

Telkonet's products provide connectivity over existing electrical wiring and do not require the costly installation of additional wiring or major disruption of business activity. In many situations, the Telkonet system can be implemented more quickly and less expensively than adding dedicated wiring or installing a wireless system. The Telkonet PlugPlus family of networking and internetworking products offers a viable and cost-effective alternative to the challenges of hardwiring and wireless local area networks (LANs). Telkonet PlugPlus products are designed for use in commercial and residential applications, including multi-dwelling units and the hospitality and government markets. For more information, please visit www.telkonet.com.


Investors Stock Daily, Inc.             CEOcast, Inc.                            Berkman Associates

Jody Janson                                     Ken Sgro                               John Hicks

585-232-5440                             212-732-4300                        310-277-5162                  

jody@istockdaily.com                    kensgro@ceocast.com               info@berkmanassociates.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).