GERMANTOWN, Md. — (BUSINESS WIRE) - Telkonet, Inc. (AMEX: TKO), the leading supplier of construction and broadband access over existing power lines, announced today that on April 17, 2007, Telkonet, Inc (the “Company”) has received from the American Stock Exchange (AMEX), the company is not in compliance with sections 120 and 121 (A) of the AMEX Company Guide. In particular, AMEX has defended the thesis that some of the society of transactions with related parties have not been verified by the audit committee of the company or an institution of their board of directors, as stated in Section 120 and the company does not have enough independent Directors, a majority of the Board of Directors is considered “independent” under the definition of that term in the AMEX Company Guide.
Although the Company believes that it can reasonably satisfied AMEX collection of standards and continue with AMEX, to the extent that a written analysis to support this belief, AMEX has refused, for the position of the company and the company to submit a plan for compliance no later than May 1, 2007, AMEX Board of measures it has taken or will take to the company, in accordance with articles 120 and 121 (A ) of the AMEX Company Guide.
Immediately after receiving the letter, AMEX, in the context of the formulation of society, respect for the plan, the Chief Executive Officer and Chairman of the Board of Directors, looking for a new board member Independent . On April 23, 2007, the Governing Council, a meeting at the Stephen L. Sadle, the company was Senior Vice President and an independent non-member, resigned and Anthony J. Paoni was chosen for the vacant seat on the board of M. Sadle. The Governing Board noted that Mr. Paoni is “independent” within the meaning of the AMEX Company Guide.
Ron Pickett, President and CEO of Telkonet, said: “Although the board of directors believes that the company meets all criteria for continued listing of the AMEX, AMEX and the firm analysis of this issue within the framework of dialogue with representatives AMEX, we are disappointed to learn that D’goods AMEX agree with our position. We have immediate steps to remedy AMEX has been concluded, what the company with non-compliance certain requirements. As a result of the action of the company’s Board of Directors announced today that on board completely Fixed issues concerning compliance with the AMEX. The company is also directly linked AMEX continue the outcome of this case. ”
Mr. Paoni, the company’s new independent director, was a faculty member at Northwestern University’s Kellogg School of Management since 1996. Previously, he worked 28 years in information technology with leaders of the business sector, the hardware, software and consulting services.
For the first 15 years of his career as a professor Paoni manages sales and marketing organizations and in the subsequent phases of his career, he has changed into general management positions, starting with PANSOPHIC Systems Incorporated. The Lisle, Illinois, firms in the world’s fifth most international software companies for the acquisition of Computer Associates, Incorporated. Then, he was appointed Chief Operating Officer of Cross Access, a venture capital funded software company, a leader in the area of connectivity solutions for heterogeneous database market segment. In addition, he is chairman of two subsidiaries one hundred percent in the United States Ricardo Consulting, based in Britain an international organization of consulting company focuses on computer Power Train Cars Design. Prior to joining Kellogg of the Faculty, Professor Paoni was Chief Executive Officer of Eolas, an Internet software company with the technology of the Internet with patent pending - one of the most important technology drivers for the rapid establishment of the Internet platform.
Paoni has been a visiting professor to speak more than 200 conferences. It is on the Board of Directors of The Chamberlain Group (a subsidiary of Duchossois Industries), one of the largest manufacturers of systems for access doors. He serves on the Advisory Committee elite laboratory services, and he is chairman of the Executive Committee of XL Technology Group (www.xltg.com). From 1996 to 2006, Professor of Trustees held Paoni CompuCom Systems (NASDAQ: CMPC), USF Corporation (NASDAQ: CFSU), and has served as Chairman of Arizona technology companies, business technology commercialization in ‘Arizona State University. Paoni was appointed professor at Chicago Mayor Richard M. Daley ‘Technology Advisory Board in 1999. During the year 1998, it was as a strategic advisor to the US Navy for the CVX Carrier nuclear programme. It is also an employee of the Diamond Exchange Network, which consists of creativity, science and the private economy.
In addition to teaching the Kellogg School, Professor Paoni visit is a faculty member at Arizona State University, WP Carey School of Business, Hong Kong University of Science and Technology, Graduate School of Business; scientist at the University Untemehmensführung of (WHU), Otto Beisheim Graduate School of Management, Germany, and The Sasin Graduate School of Business Administration, Chulalongkorn University, Thailand. Professor Paoni received his Bachelor of Science in Mechanical Engineering from 1968 Rochester Institute of Technology and his MBA in 1992, the Kellogg School of Management, Northwestern University.
Apart from the election to Mr. Paoni Company’s Board of Directors, the Board unanimously adopted a formal procedure whereby he proposed to all transactions with related parties directly to the company of the Audit Committee for the review, examination and approval. According to the SEC rules and AMEX, the Company is required to establish a database and 8K a press release from the disclosure of all provisions before 5.30 pm on 23 April 2007 EDT.
