MSTI and Telkonet Target Commercial Tri-State HSIA Market with First Deployment Of Telkonet Series 5 200Mbps PLC Broadband Networking Solution

Hi-Rise NYC Commercial Office Building Benefits from Fast Ethernet-Equivalent Network Speeds with Rapid PLC System Retrofit

March 26, 2008, GERMANTOWN, Md. & HAWTHORNE, N.J.–(BUSINESS WIRE)–MSTI Holdings, Inc. (OTCBB: MSHI - News) and Telkonet, Inc. (AMEX:TKO - News), today announced the first commercial installation of the next-generation 200Mbps Telkonet Series 5™ powerline communications (PLC) system, enabling broadband networking in a rapid deployment at 370 Lexington, a high-rise commercial office building located in the heart of Midtown Manhattan. MSTI and Telkonet are partnering to bring the groundbreaking Telkonet Series 5 platform to building owners throughout the Tri-State area as part of an aggressive marketing program. MSTI is a leading provider of true quad play services to residential, hospitality and commercial properties, while Telkonet is the leading provider of innovative, centrally managed solutions for integrated energy management, networking, building automation and proactive support services.

The high-grade Telkonet Series 5 system at 370 Lexington was installed by MSTI’s wholly-owned subsidiary, Microwave Satellite Technologies, Inc. (MST, Inc./NuVisions) in just a few hours, transforming the 26-floor property’s backbone high-speed Internet access (HSIA) platform, into a highly secure, Fast Ethernet network, with scalable performance and bandwidth, underpinned by exceptional quality and reliability. More than 100 businesses at the property now have access to substantially enhanced, robust and affordable HSIA, with the 200Mbps Telkonet Series 5 system supporting typical speeds of 20Mb or higher, as well as a wide range of demanding bandwidth intensive applications, such as videoconferencing. With Telkonet Series 5 now in place, 370 Lexington’s management can rapidly and easily adopt additional applications, such as surveillance, security and energy management.

This first installation underlines Telkonet Series 5’s versatility for commercial Fast Ethernet network applications, enabling a building to be retrofitted with the most advanced communications infrastructure at significantly lower cost than competitive solutions. Central to the agenda of 370 Lexington’s management was finding a cost-effective HSIA offering that would cater to the diverse commercial requirements of the building.

“We were looking to outfit 370 Lexington with an alternative service offering that would match the best HSIA available for speed and capacity,” stated Daniel M. Blanco, principal of Broad Street Development, owners of 370 Lexington Avenue. “Network speed and performance are of top priority for many of our tenants, and Telkonet Series 5 provides a reliable, secure platform that can handle the most demanding requirements.” He added, “MSTI upgraded the entire building incredibly quickly and without any disruption to our tenants, while also drastically out-pricing any potential competitors. The entire process was painless – there were no time-consuming modifications to our property or its wiring, just a fast and efficient installation.”

Dan Chang, the VP of Finance of China Natural Gas, which occupies at suite at the property, added that, “our company was interested in an affordable and reliable solution that could meet the demands of our business needs. The MST/NuVisions service running over the Telkonet Series 5 PLC solution has met those needs and is extremely flexible in its use.”

Frank T Matarazzo, CEO of MST, believes that this first installation illustrates the commercial scope for Telkonet’s advanced PLC solution, opening up a key market opportunity for the two companies, “The combination of Telkonet’s new 200 Mbps platform and MST’s expertise in the tri-state commercial property market is a compelling combination. For the first time, property owners can benefit from a high performance solution that delivers on all counts, leveraging the clear advantages of PLC with Fast Ethernet speeds and performance attributes.”

The Telkonet Series 5 platform is a high-level, versatile PLC solution designed specifically to meet the exacting broadband networking demands of the commercial sector. It combines Telkonet’s proven powerline technology with the most advanced 200Mbps chipset currently available, to enable a new level of PLC performance that far outstrips conventional residential alternatives. It is ideally suited for in-building networks where there are issues with wired and wireless solutions, such as thick or dense wall structures, the presence of asbestos, highly secure applications, or for historic buildings where any form of physical incursion is prohibited or impractical. Telkonet Series 5 transforms a site’s existing internal electrical infrastructure into an IP network backbone, without installing new cabling. It combines the traditional PLC benefits of fast, easy and non-disruptive installation, typically in hours or days rather than weeks. It provides complete flexibility in locating communication interfaces and supports connectivity to any Ethernet or serial device or application, across data, voice and video. It incorporates Telkonet’s comprehensive built-in network management, without the need for drivers or additional software, enabling the remote monitoring and troubleshooting of communications networks.


About NuVisions

NuVisions, a trademark of Microwave Satellite Technologies, Inc., offers “quad play” services, including cable programming, Voice over Internet Protocol telephone (VoIP), high-speed Internet access, and Wi-Fi services to multi-dwelling unit properties in New York, New Jersey and San Francisco. For more information, please visit www.nuvisions.tv.


About MST Inc.

MST Inc., a wholly-owned subsidiary of MSTI Holdings, Inc., (MSHI.OB) is a communications technology company that specializes in video to the desktop, video conferencing, distance learning, two-way data, and Internet access services. MST Inc. offers complete sales, installation, and service of VSAT and business television networks, and is a full-service national Internet Service Provider (ISP), offering the latest in web hosting and design. MST Inc.’s NuVisions Broadband services offer cable television, cable modem high-speed Internet, and telephone services to multi-family residences, commercial buildings, and institutional owners. MST Inc. delivers its services using microwave and fiber optic technology for superior performance, and now offers over 500 television channels with more than 45 channels of high definition television (HDTV). MST Inc. has begun deployment of its new Interactive Wi-Fi, hot-zone system that will offer wireless Internet service in large geographic areas of New York City, and is introducing the newest Powerline Carrier (PLC) technology to high-speed Internet users in apartment buildings, hotels, and business environments. For more information, visit our websites at www.mst-online.com and www.nuvisions.tv.


About Telkonet

Telkonet’s unique broadband networking solutions currently support more than 1.5 million network users per month, with its energy management systems optimizing energy consumption in over 80,000 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 Series 5 and the Telkonet iWire System™, which convert 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.