Telkonet Inc (fka TKO)

[colormixer2001]

Here what it should say.........



To our Valued Shareholders,
2006 has been an exciting year for Telkonet. We are continuing to reinforce the Company as the
leader in powerline communications technology by adding new capabilities to our product platform,
such as energy management, and by developing key strategic relationships. We have invested over
two years in the development and positioning of our products for sale within the government sector
and, as a result, we hope the Company is finally poised to reap the benefits of these efforts within
the federal, state and local government markets. As this is the beginning of the year, we are trying to find any
significant accomplishment in the past twelve months that we have made besides a declining stock price that we are very proud of this and will continue into 2007.


We will maybe try to achieve significant milestones in implementing our focused marketing strategies and we don't appreciate
your continued support.
Sincerely,
Pete Musser, Chairman Ron Pickett, President and C