Telkonet is a clean technology company focused on energy management for intermittently occupied spaces. It has two main products: EcoSmart, an energy management system installed in over 200,000 locations, and EthoStream, the largest hospitality WiFi network in the US serving over 4 million users monthly. While Telkonet has experienced losses in recent years due to investment in growth, its innovative technology and expanding customer base in key verticals position it for continued expansion.

1. Where Energy Matters
Jason Tienor, CEO
November 2012

2. Forward Looking Statement
Certain statements in this presentation, including statements regarding
future results and performance, are forward-looking statements based on
current expectations. The accuracy of such statements is subject to a
number of risks, uncertainties and assumptions that may cause actual
results to differ materially from those projected, including, but not limited
to, the effect of general economic conditions, raw material price increases
and availability, currency fluctuations, prevailing electricity selling prices,
adverse changes in general market and industry conditions and other
factors listed in the Company's filings with different securities
commissions.

3. Company Profile
Telkonet • EthoStream • EcoSmart Symbol: TKOI
www.telkonet.com
Clean Technology company with a focus on intermittently occupied spaces
Founded in 1999 • Multiple acquisitions in 2007
Headquartered in Milwaukee, Wisconsin
Current staff of 86 employees
Major target markets include Hospitality, Education, and Military
EthoStream provides public access networking and high-speed Internet access solutions for nearly 5 million
users monthly at 2,400 locations.
EcoSmart offers a state-of-the-art energy management system designed for spaces with intermittent
occupancy, which integrates with other systems (e.g. BAS, PMS). EcoSmart is deployed in several hundred
thousand rooms and managed through a cloud-based monitoring network.

4. Overview
Telkonet is an emerging Clean Technology leader with:
■ Patented and innovative technology
■ Hospitality, education, military, municipal and government installations
We develop, manufacture and market the innovative EcoSmart Suite
■ Revolutionary energy management platform with patented Recovery Time™ technology
■ Current energy solutions installed in 200,000+ locations and growing
Telkonet operates the largest hospitality HSIA network in the US
■ EthoStream Hospitality Network with 2,350 locations
■ 4.2 million monthly users
Our Sales Strategies
■ Direct sales
■ Channel sales

5. Financial Overview
12,000$ Revenue
Gross Margin
10,000$ Operating Expenses
Operating Income (Loss)
8,000$ Net Income (Loss)
6,000$ *All numbers given in 000’s
4,000$
2,000$ This data represents 9
months (YTD) only.
0$
-2,000$
-4,000$ New Management
-6,000$
2009 2010 2011 9/30/2012

6. According to the American Council for an Energy Efficient
The Global problem Economy, the cost of saving one unit of energy through energy
efficiency is one-fifth the cost required to generate that same
unit of energy.
Global energy consumption will increase by World-wide energy-related carbon dioxide
53% between 2008 and 2035. emissions rise 43% between 2008 and 2035.
in billion metric tons
Source: EIA, International
Energy Outlook 2010

7. The Telkonet Solution
Demonstrate
Reduction in energy
dedication to the
use and total cost
environment
Maximize customer
Provide comprehensive
satisfaction and
insight into every room
retention

8. Our Technology
Recovery Time™ EcoCentral
Patented Technology Web-Based Management
Smart Grid
Load Shedding Events

9. Intermittently Occupied Spaces?
Solution: Control the Unexpected with EcoSmart
What are intermittently occupied spaces?
Hotel rooms, college dormitories, military barracks, assisted living facilities, K-12 classrooms, etc.
Why is energy management a solution for intermittently occupied spaces?
‐Manually monitoring room temperature is practically impossible:
‐Requires full participation of staff
‐Requires room checks and occupant disruption
‐Typically affects lighting and appliances as well
EcoSmart saves 20-40% of energy consumption and runtime.
Use occupancy-based energy management to control:
HVAC Plug loads Appliances
Lighting Shades
A networked energy management system provides control through a web-based platform.
Demand Response Ready – reduce peak demand by 50% or more
Minimal impact on comfort and productivity
Designed for simplicity.
Flexible wired or wireless installation, simple to program and commission
Built-in measurement and verification

10. The EcoSmart Suite
EcoInsight EcoConnect EcoCommander
EcoView EcoWave EcoSwitch EcoGuard EcoContact

11. The EcoSmart Cloud Architecture

12. EcoSmart In-Room Operation

13. EcoSmart Key Customers

14. Research shows that the US economy has the potential to
Market Opportunity reduce annual, non-transportation energy consumption by
roughly 23% by 2020. This would eliminate more than $1.2
trillion in waste.

15. Commercial Energy Patterns Energy management systems for commercial
buildings will garner $67 billion in investment by 2020.
Average use for all
commercial buildings:
12.8 thousand sq. ft.
Source: EIA, 1995 Commercial Building Energy Consumption
Survey

16. The ratepayer-funded energy efficiency program
management industry is rapidly expanding in the United
Residential Energy Patterns States. From 2004 through 2009 ratepayer-funded
energy efficiency spending increased from $1.7 billion
to $4.4 billion.
Water Heater
Refrigerator
Dishwasher
Clothes Washer/Dryer
eating/Cooling
Computer/Monitor
TV/VCR/DVD
Lighting
Other

17. EcoSmart’s Competitive Landscape
In-room Buildings
Energy Cloud
Management Services
Smart Grid
Integration and
Deployment

18. EcoSmart’s Competitive Advantages
EcoCentral
Recovery Time
Technology
Cloud-enabled
control
and reporting
Compatibility
Integration with 3rd
party systems (open
standards)

19. The EthoStream Network
Solutions:
Largest HSIA Network in the US
220,000 rooms, 2350 hotels, 4.2 million monthly users
Concerns:
EGS Pro gateway servers
Guest expectations Simple, proactive network management tools
Ubiquitous property coverage
Ease-of-use
Property-wide, uninterrupted HSIA service
Inconsistent wireless
2-5 day seamless installation process
Disruptive installation Minimal new wiring with no structural intrusion
24/7, 365 in-house support center
Inadequate support resources
US based, knowledgable, certified support staff
Lack of network control
Superior bandwidth management tools
Out-dated equipment Review bandwidth use to proactively accommodate guests’
needs
Future-proof connectivity
Proactive updates ensure the highest level of equipment
compatibility

20. The EthoStream Key Customers

21. The EthoStream Network
• Higher demands in user’s wireless expectations
• Growth of wireless and mobile bandwidth consumption
• Changes in wireless standards to meet the rise in
bandwidth use
• New technology requires constant access
• The need to ease 3G and 4G mobile data congestion
Source: FCC, industry reports. Energy
Economics

22. The Telkonet Pipeline
Projects (current/complete)
Trane → Ft. Drum Military Base
Noresco → West Point Military Acadamy
NYU Dormitory Facilities
Boyd Gaming Casino
Crown Plaza Times Square
UC Davis Dormitory Facilities
Denihan Hospitality Group
Waikiki Hyatt Place
Motel 6 & Studio 6
Suite Control
Recurring → ~$4M

23. Financial Summary
Net Income Operating Expenses
$25,000
$10,000
$0 $20,000
-$10,000
-$20,000 $15,000
-$30,000
2008 2009 2010 2011 9/30/2012 $10,000
$5,000
Gross Margin
$0
$8,000 2008 2009 2010 2011 9/30/2012
$6,000
$4,000 Operating Income
$2,000 $0
$0
-$2,000
2008 2009 2010 2011 9/30/2012
-$4,000
Revenue -$6,000
-$8,000
$20,000
-$10,000
$15,000
$10,000 -$12,000
$5,000 -$14,000
$0 -$16,000
2008 2009 2010 2011 9/30/2012 2008 2009 2010 2011 9/30/2012

24. Balance Sheet Balance Sheet
Total Assets
Total Liabilities
Total Equity
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
12/31/09 12/31/10 12/31/11 9/30/2012
*All numbers given in 000s

25. Anticipated Milestones
New product introductions Full-service markets
Create larger residential Expanded HSIA services
demographic Further platform integration
Further Utility integration Increased international focus
Exceed financial goals Market expansion
Channel sales

26. Our Leadership
Telkonet Board of Directors: Telkonet Management Team:
William H. Davis Jason L. Tienor
Chairman of the Board Chief Executive Officer
Glenn A. Garland Richard E. “Gene” Mushrush
Chief Financial Officer
Director
Jeffery J. Sobieski
Timothy S. Ledwick
Chief Technology Officer
Director, Audit Committee
Chairman Gerrit Reinders
Executive VP of Sales and Marketing
Jason L Tienor
Director Matthew Koch
Chief Operating Officer

27. 10200 Innovation Drive
Suite #300
Organization & Facility Milwaukee, WI 53226
(414) 223-0473
Sales
Production /
Warehouse
Installers
Executive
s Support
Engineerin
g
Administration / System
Finance Admins

28. TKOI Market Share Data
Telkonet, Inc. Option and Warrants (as of 11/7/12)
Capitalization (as of 11/07/12)
■ Ticker Symbol: TKOI ■ Options: 980,642
■ Outstanding Shares: 108,103, 001
■ Price: 11/1/52012: $0.16 ■ Ave. Weighted Exercise Price: $0.79
■ Fully Diluted Shares: 109,560,998
■ 52-week High: $0.23 ■ Warrants: 10,620,998
■ Management Holding: approx. 4%
■ 52-week Low: $0.12 ■ Ave. Weighted Exercise Price: $0.46
■ Average Daily Volume: 142,226