Telkonet, Inc. announced that In connection with the Transaction and pursuant to the Purchase Agreement, Arthur E. Byrnes, Peter T. Koss and Leland D. Blatt resigned from the Board of Directors of the Company and any respective committees of the Board to which they belonged effective as of the Closing. The vacancies resulting from the resignations of the Former Directors were filled by Piercarlo Gramaglia, Flavio De Paulis and Steven E. Quick (collectively, the “New Directors”), all of whom were appointed by the remaining Board members effective as of the resignations of the Former Directors, resulting in a change of control of the Board. Jason L. Tienor and Tim S. Ledwick, who were Board members prior to the Closing, remained on the Board after the Closing.

The New Directors will serve until the next annual meeting of the Company's stockholders or until their resignation and/or a respective successor is elected. It is expected that Mr. Gramaglia will serve on the Nominating Committee, Mr. De Paulis will serve on the Nominating Committee and the Compensation Committee and Mr. Quick will serve on the Audit Committee and the Compensation Committee. Also in connection with the Transaction, the Company entered into new employment agreements with three executives (the “Continuing Executives”) to be effective upon the Closing.

The Continuing Executives are Jason L. Tienor, who will serve as Chief Sales & Operation Officer of the Americas, Jeffrey J. Sobieski, who will serve as Chief Technology Officer, and Richard E. Mushrush, who will serve as Chief Financial Officer.