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FOR IMMEDIATE RELEASE

EthoStream Awarded Contracts to Provide Converged Network Solution and Guest Support for Two Additional Destination Hotels & Resorts

14 Destination Hotels & Resorts properties now supported by EthoStream, with the latest two premier properties including the new Southern California world-class resort and spa, Terranea

August 18, 2009 - Germantown, MD - EthoStream, LLC, a Telkonet company (Pinksheets: TKOI), operators of one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., and a preferred or endorsed provider for some of the world's largest hotel companies, announced today that it has received contracts from Destination Hotels & Resorts, consistently ranked one of the top ten largest independent hospitality management companies in the U.S. EthoStream is providing a single-solution converged IP network for the world-class Terranea Resort on California's Palos Verdes Peninsula, which opened on June 12, 2009. The project involves integrating wireless and wired high-speed Internet access (HSIA) with back-office connectivity and remote customer support. At the Resort at Squaw Creek near Lake Tahoe, California, EthoStream is installing wireless networking throughout the luxury resort, as well as providing 24/7 guest support services.

Jeff Henschel, Vice President of Technology - Hotels for Destination Hotels & Resorts, commented, "For our new flagship Terranea Resort, we wanted to consolidate a diversity of network applications over a single managed IP network, while still meeting our stringent budget requirements. EthoStream was able to deliver on all fronts. Its core network delivers consistent connectivity - across guest Internet access, mini-bar communications, guest TV systems, and our Property Management System. This converged network achieves far greater efficiency, as well as giving us a secure, extendible platform for our business-critical applications, and streamlining our operations."

With EthoStream's web-based management interface, Destination Hotels & Resorts is now able to manage 14 of their properties remotely from a single location, involving a total of over 4,000 guestrooms. Remote management facilities include the ability to compare HSIA usage among properties, as well as monitor Internet connectivity and guest support activity. EthoStream will be providing 24/7 support to both properties, taking over guest support from the internal IT staff at the Vail Cascade Resort and displacing the current vendor at the Resort at Squaw Creek. EthoStream's in-house support center has a real-time view of guests' HSIA usage via EthoStream's web-based platform, enabling quick, proactive problem resolution.

About Destination Hotels & Resorts
Destination Hotels & Resorts is one of the largest independent hospitality management companies in the country with more than 30 luxury and upscale hotels, resorts and conference centers. To protect and preserve the unique communities in which the company operates, Destination launched Destination Earth, an environmental sustainability program in 2008. In June of 2009, Destination opened the 582-room Terranea Resort situated on the Palos Verdes Peninsula in southern California. The 102-acre ocean front resort features a 25,000-square-foot destination spa, three swimming pools, three ocean-view restaurants and a Todd Eckenrode-designed par three golf course. In addition to Terranea Resort in the greater Los Angeles area, Destination operates properties in key metropolitan areas and resort markets including Washington, D.C., Denver, San Diego, Santa Fe, Aspen, Palm Springs, Houston and Lake Tahoe. Destination is a subsidiary of Los Angeles-based investment, development and management firm Lowe Enterprises. For more information on the properties in the Destination Hotels & Resorts collection, please visit www.destinationhotels.com.

About EthoStream
EthoStream, LLC is a technology solution provider targeting the hospitality and MDU/MTU verticals. Operating one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., EthoStream is a preferred or endorsed provider for some of the world's largest hotel franchisors. Now offering solutions including VOD, VoIP, digital video surveillance, Internet connectivity and HSIA packages, EthoStream has developed the most comprehensive technology management platform available for the hospitality industry.

EthoStream has distanced itself from other providers in the hospitality HSIA field through the size of its EthoStream Hospitality Network, high quality of technology and support provided to network members, security of the network and overall guest satisfaction. Beyond claims made by competitors, as the premier hospitality HSIA provider, EthoStream has continued to lead the industry through end-to-end service and its high quality standards. To learn more about EthoStream's products, services and EthoStream Hospitality Network, please visit www.ethostream.com.

About Telkonet
Telkonet specializes in advanced integrated solutions for broadband data networking and energy management, including its highly successful in-building powerline communications (PLC) technology. Headquartered in Germantown, Maryland, USA, Telkonet has over 175 employees and serves thousands of customers worldwide.

The company's unique broadband networking solutions currently support more than a million network users per month, with its energy management systems optimizing energy consumption in over 60,000 rooms. Telkonet's technology innovation is underpinned by the highest level of end-to-end quality of service, with comprehensive technical customer support. Its systems deliver wide-ranging functionality, from wired and wireless high-speed Internet access to energy management, IP surveillance and local area networking. Telkonet's platforms are widely deployed on the global stage - in single buildings and ships, in multi-building complexes, hospitality venues and multi-dwelling units, and at government, education and defense locations.

Telkonet's innovations include the revolutionary Telkonet iWire System™, which converts a site's existing internal electrical infrastructure into an IP network backbone - quickly, cost-effectively and without disruption. The portfolio also includes the integrated EthoStream product suite, providing a comprehensive and advanced technology management platform for the hospitality industry, differentiated by outstanding remote management tools and a dedicated customer support facility. Telkonet SmartEnergy completes the line-up, delivering typical bottom line savings of 30% by controlling in-room energy consumption according to occupancy. For more information, please visit www.telkonet.com.

Contacts:
Joe Noel - Telkonet
240.912.1851

Mitchell Simmons - Rubenstein Public Relations
212.843.8364
msimmons@rubensteinpr.com

Andrew Hellman - CEOcast
212.732.4300
adhellman@ceocast.com

EthoSTream corporate address

EthoStream, LLC

10200 Innovation Dr
Suite 300
Milwaukee, WI  53226
Toll Free:  877.536.2984
Milwaukee:  414.223.0473
Fax:  414.258.8307

Fabulous Service

"I wanted to send you a quick e-mail and let you know how extremely satisfied I have been with the service that Jason Tienor and his entire Team at Ethostream. Jason’s entire Team has responded to our request for service in Green Bay and quickly was able to get out to the job site to stay ahead of the sheet rockers. All too often we only tend to contact the Brand due to negative issue and felt that you should hear about this awesome service that they extended to us. I look forward to working with Jason and his entire Team on all our other projects in the future. Thank you for partnering with a company that is as service driven as we are!

Tim Waz - Director of Operations - HP Hotels, Inc "

Customer Testimonials

"In addition to stable hardware, the primary reason we use EthoStream for our hotels' wireless networks, is about service. Last week, Dominic, one of the EthoStream technicians spent a great deal of time with our bandwidth provider to solve a problem that was not even related to the EthoStream network. It's that kind of commitment to service that keeps EthoStream on top of our vendor list."

Bob Nietzel - Director of Food & Beverage - Holiday Inn Select Naperville