Where Energy MattersJason Tienor, CEO

April 2013

Forward Looking Statement

Certain statements in this presentation, including statements regardingfuture results and performance, are forward-looking statements based oncurrent expectations. The accuracy of such statements is subject to anumber of risks, uncertainties and assumptions that may cause actualresults to differ materially from those projected, including, but not limitedto, the effect of general economic conditions, raw material price increasesand availability, currency fluctuations, prevailing electricity selling prices,adverse changes in general market and industry conditions and otherfactors listed in the Company's filings with different securitiescommissions.

Company ProfileTelkonet • EthoStream • EcoSmart

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 5.2 million

users monthly at over 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 over 225,000 rooms

worldwide and managed through a cloud-based monitoring network.

Symbol: TKOIwww.telkonet.com

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Revenue

Gross Margin

Operating Expenses

Operating Income (Loss)

Net Income (Loss)

Financial Overview

*All numbers given in 000’s

.

New Management

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

The Global Problem

Global energy consumption will increase by53% between 2008 and 2035.

Source: EIA, InternationalEnergy Outlook 2010

World-wide energy-related carbon dioxideemissions rise 43% between 2008 and 2035.

in billion metric tons

According to the American Council for an Energy EfficientEconomy, the cost of saving one unit of energy through energyefficiency is one-fifth the cost required to generate that sameunit of energy.

Energy Management Market 2013-2020

The automated, or smart, buildingenergy management systems

market is to almost quadruple insize and be worth over $1 billion by

2020__________________

Worldwide spending on theseservices will grow from $291 million

in 2012 to $1.1 billion by 2020__________________

This represents a compoundannual growth rate of almost 18

percent over that time period

The Telkonet Solution

Demonstratededication to theenvironment

Maximize customersatisfaction andretention

Reduction in energyuse and total cost

Provide comprehensiveinsight into every room

Our Technology

Recovery Time™Patented Technology

EcoCentralWeb-Based Management

Smart GridLoad Shedding Events

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

The EcoSmart Suite

EcoInsight

EcoSwitch EcoGuard EcoContactEcoWaveEcoView

EcoConnect EcoCommander

The EcoSmart Cloud Architecture

EcoSmart In-Room Operation

EcoSmart Key Customers

Market OpportunityResearch shows that the US economy has the potential toreduce annual, non-transportation energy consumption byroughly 23% by 2020. This would eliminate more than $1.2trillion in waste.

Commercial Energy Patterns Energy management systems for commercialbuildings will garner $67 billion in investment by 2020.

Source: EIA, 1995 Commercial Building Energy ConsumptionSurvey

Average use for allcommercial buildings:

12.8 thousand sq. ft.

Residential Energy PatternsThe ratepayer-funded energy efficiency programmanagement industry is rapidly expanding in the UnitedStates. From 2004 through 2009 ratepayer-fundedenergy efficiency spending increased from $1.7 billionto $4.4 billion.

Heating/Cooling

Water Heater

Refrigerator

Dishwasher

Clothes Washer/Dryer

Computer/Monitor

TV/VCR/DVD

Lighting

Other

EcoSmart’s Competitive Landscape

In-roomEnergy

Management

BuildingsCloudServices

Smart GridIntegration andDeployment

EcoSmart’s Competitive Advantages

EcoCentral

Cloud-enabledcontroland reporting

Integration with 3rdparty systems (open

standards)

Compatibility

Recovery TimeTechnology

EthoStream HSIA Network

Solutions:

Largest HSIA Network in the US

220,000 rooms, 2350 hotels, 4.2 million monthly users

EGS Pro gateway servers

Simple, proactive network management tools

Ubiquitous property coverage

Property-wide, uninterrupted HSIA service

2-5 day seamless installation process

Minimal new wiring with no structural intrusion

24/7, 365 in-house support center

US based, knowledgable, certified support staff

Superior bandwidth management tools

Review bandwidth use to proactively accommodate guests’needs

Future-proof connectivity

Proactive updates ensure the highest level of equipmentcompatibility

Concerns:

Guest expectations

Ease-of-use

Inconsistent wireless

Disruptive installation

Inadequate support resources

Lack of network control

Out-dated equipment

EthoStream Key Customers

The EthoStream Network

Source: FCC, industry reports. EnergyEconomics

• 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

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

Net Income

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$0

$5,000

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$15,000

$20,000

2008 2009 2010 2011 2012

Financial Summary

Operating Expenses

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2008 2009 2010 2011 2012

Operating Income

-$16,000

-$14,000

-$12,000

-$10,000

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

2008 2009 2010 2011 2012

Balance Sheet Balance Sheet

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12/31/09 12/31/10 12/31/11 2012

Total Assets

Total Liabilities

Total Equity

*All numbers given in 000s

Anticipated Milestones

New product introductions

Create larger residential

demographic

Further Utility integration

Exceed financial goals

Channel sales

Full-service markets

Expanded HSIA services

Further platform integration

Increased international focus

Market expansion

Our Leadership

Telkonet Management Team:

Jason L. Tienor

Chief Executive Officer

Richard E. “Gene” Mushrush

Chief Financial Officer

Jeffery J. Sobieski

Chief Technology Officer

Gerrit Reinders

Executive VP of Sales and Marketing

Matthew Koch

Chief Operating Officer

Telkonet Board of Directors:

William H. Davis

Chairman of the Board

Glenn A. Garland

Director

Timothy S. Ledwick

Director, Audit CommitteeChairman

Jason L Tienor

Director

Organization & Facility

Sales

Support

SystemAdmins

Administration /Finance

Engineering

Executives

Installers

Production /Warehouse

10200 Innovation DriveSuite #300Milwaukee, WI 53226(414) 223-0473

TKOI Market Share Data

Telkonet, Inc.

■ Ticker Symbol: TKOI

■ Price: 3/22/2013: $0.25

■ 52-week High: $0.34

■ 52-week Low: $0.12

Capitalization (as of 3/22/2013)

■ Outstanding Shares: 108,103, 001

■ Fully Diluted (12/31/12): 107,387,408

■ Management Holding: approx. 4%

■ Average Daily Volume: 239,734

Option and Warrants (as of 12/31/12)

■ Options: 1, 280,642

■ Ave. Weighted Exercise Price: $0.62

■ Warrants: 10,636,931

■ Ave. Weighted Exercise Price: $0.40