March 23, 2004

News Release: Telkonet and Anteon To Provide Powerline Communications Solutions for The U.S. Navy

Telkonet, Inc. (Amex:TKO) the leader in Commercial Powerline Communications bringing the 'Outlet to the Internet,'is pleased to announce the execution of a Teaming Agreement with Anteon Corporation, a leading information technology and systems engineering solutions company, to support the deployment of comprehensive powerline communications (PLC) solutions for the Department of Defense. Under their Agreement, Telkonet and Anteon propose to deliver cost-effective, rapidly deployable data network solutions to Department of Defense and other government customers who require network integration, maintenance, and management in challenging physical environments and remote locations. Telkonet has been developing its business in providing unique powerline networking and Internetworking systems and, with Anteon's support, has been testing and validating the Telkonet systems aboard U.S. naval ships. Telkonet's PlugPlus(TM) PLC systems are a viable, low-cost solution to the challenges of retrofitting secure, high-speed data networks by using a ship's existing electrical wiring. In January 2004, Telkonet further enhanced its market in commercial applications by teaming with Anteon to jointly deploy an engineered powerline networking system for the Chicago Housing Authority for potential implementation across Chicago's extensive public housing program.

Ronald Pickett, President and CEO of Telkonet, Inc. stated, 'I am pleased to announce this Teaming Agreement with Anteon Corporation, one of the leading IT services prime contractors to the Department of Defense and other federal agencies in the United States and overseas. With Anteon's extensive experience and proven capabilities in providing IT and engineering services to government and military customers, Telkonet can now take full advantage of the growth opportunities in the government and military sectors. We can deliver secure, reliable and scalable networking solutions to the Navy at a fraction of the cost of traditional wired or wireless systems by making cost-effective use of the ship's most extensive network already in place--its electrical wiring.'

S. Daniel Johnson, Anteon Executive Vice President and COO stated, 'This technology has the potential for providing affordable, direct Internet access to our military service men and women stationed around the globe, thus providing the opportunity for better communications with their families and military support infrastructure.'

About Telkonet

With its headquarters in Annapolis, MD, Telkonet's (Amex:TKO) 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. Telkonet PlugPlusInternet products are designed for use in commercial and residential applications, including multi-dwelling units, and the hospitality and government markets. For more information, visit: www.telkonet.com.

About Anteon

Anteon, headquartered in Fairfax, Virginia, is a leading information technology and engineering solutions company providing support to the federal government and international sectors. For over 28 years, the Company has designed, integrated, maintained and upgraded state-of-the-art systems for national defense, intelligence, emergency response and other high priority government missions. Anteon also provides many of its government clients with the systems analysis, integration and program management skills necessary to manage the development and operations of their mission critical systems. The Company currently has approximately 7,600 employees in more than 100 offices worldwide. Anteon consistently ranks among the top information technology integrators based on independent surveys. Anteon was cited by Forbes Magazine, in 2004, as one of the 25 fastest growing technology companies and named one of the world's top 100 information technology companies in Business Week's INFOTECH 100 Annual Report (2003). For more information, visit www.anteon.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).

SOURCE: Telkonet, Inc.

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