MSTI Holdings, Inc., a Telkonet company (AMEX:TKO – News) and a carrier class communications technology company that specializes in providing true quadruple play services to residential, hospitality and commercial properties, announced today that its shares will commence trading under the symbol MSHI.OB on the over-the-counter bulletin board and that it closed on approximately $3.1 million of equity financing through the sale of common stock and warrants and approximately $6 million of debt financing through the sale of debentures and warrants on May 25, 2007. Palladium Capital Advisors served as lead placement agent in connection with this offering. The proceeds of this financing will be used for debt repayment, acquisitions, and general working capital of the firm.

Frank Matarazzo, President and Founder of MSTI, said “Becoming a public company will allow MSTI to enjoy a much broader exposure to the investment community and will provide us with the access that we need to the capital markets for widening market share and growing our revenues and earnings.” Mr. Matarazzo continued, “With the additional capital from this offering and the greater access to capital associated with being public, we are in a much better position to offer highly competitive services, utilizing the best technologies available within the satellite communications industry.”