ETC Announces 2000 Year End Results

Waukesha, WI—February 16, 2001


For Further Information contact: Dean Danner, President
                                 Jeff Nigl, Chief Financial Officer
                                 (262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, February 16, 2001                  	The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC.                            Symbol - ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported final audited results for its 2000
fourth quarter and fiscal year.  Sales in 2000 were $10,454,180, resulting in a loss of $512,696
or $0.20 per Class A share, compared to a 1999 loss of $94,157 or $0.02 per Class A share on
sales of $10,823,705. Sales for the fourth quarter of 2000 were $2,412,770, compared to 1999
fourth quarter sales of $1,790,855. For the fourth quarter of 2000 ETC reported a loss of
$91,636 or $0.04, compared to a loss of $392,110 or $0.16 for the fourth quarter of 1999.
Commenting on the 2000 results, ETC President Dean Danner said, “Sales levels were in line with
projections through the first half of the year, and generated positive earnings for ETC.
Beginning in the third quarter of the year we began experiencing a slowdown in shipments to
major customers as weakness in the telephone equipment market segment began to be recognized.
The shortfall in third quarter sales was due primarily to a slowdown in orders from competitive
local exchange carriers (CLECs), which were significant customers of ETC during the first half
of the year.  In the fourth quarter and into the start of 2001 this slowdown has been further
felt in our OEM business to the major telephone equipment manufacturers. Acquisitions and
consolidations within the industry have resulted in delayed purchasing decisions as companies
re-evaluate their strategic plans.
As we enter the first quarter of 2001, the slowdown in the general economy is having an impact
on ETC as well. The problems reported by the major telecommunications equipment suppliers has a
trickle down effect on ETC. When they ship fewer telephone switching offices they purchase fewer
voice platforms used on those offices. At the same time that sales for traditional telephone
offices are slowing, interest in the new IP based telephone switches to support the convergence
of voice and data is growing. ETC is spending the majority of its development budget on
applications for this next generation of telephone offices featuring our Digicept Emcee
platform. In development for the last two years, the Emcee is designed to work in both the IP
environment and the traditional telephone environment providing a clean platform that can
support the telephone network migration to new switches and services,” Danner said.
Electronic Tele-Communications is a supplier of Voice Application Processing Platforms to
domestic and foreign telephone utilities and of messaging systems to the commercial market.
ETC's equipment provides a wide range of audio information and call handling services via
telephone networks, computer networks, and the Internet. ETC, with corporate headquarters in
Waukesha, Wisconsin also has operations in Norcross, Georgia and Pleasanton, California.
Certain statements in this press release which are not historical facts are "forward-looking”
statements as defined in the Private Securities Litigation Reform Act of 1995. Any
“forward-looking” statements are provided in compliance with the “Safe Harbor” provision of the
Private Securities Litigation Reform Act of 1995.  “Forward-looking” statements involve a number
of risks and uncertainties including, but not limited to, technology changes, backlog,
acquisitions, status of the economy, governmental regulations, sources of supply, expense
structure, product mix, major customers, level of order flow, competition, litigation, and other
risk factors detailed in the Company’s filings with the Securities and Exchange Commission.
Investors are encouraged to consider the risks and uncertainties included in those filings.
                   
Electronic Tele-Communications, Inc.
Consolidated Statements of Operations:
                                   Three Months Ended   Twelve Months Ended
                                      December 31           December 31
                                    2000       1999       2000       1999
Net sales                        2,412,770  1,790,855 10,454,180 10,823,705
Cost of product sold             1,234,988    984,966  5,420,193  5,467,581
Gross profit                     1,177,782    805,889  5,033,987  5,356,124
Operating expenses:
 General and administrative        279,134    299,771  1,273,556  1,275,454
 Marketing and selling             540,594    630,713  2,430,033  2,515,635
 Research and development          438,389    392,042  1,811,130  1,654,246
                                 1,258,117  1,322,526  5,514,719  5,445,335
Earnings (loss) from operations    (80,335)  (516,637)  (480,732)   (89,211)
Other income (expense)             (10,301)      (873)   (27,964)     1,054
Earnings (loss) before
  income taxes                     (90,636)  (517,510)  (508,696)   (88,157)
Income taxes (benefit)               1,000   (125,400)     4,000      6,000
Net earnings (loss)                (91,636)  (392,110)  (512,696)   (94,157)
Basic and diluted earnings
 (loss) per share:
  Class A common                     (0.04)     (0.16)     (0.20)     (0.02)
  Class B common                     (0.04)     (0.16)     (0.20)     (0.10)
Weighted average shares outstanding
 for basic and diluted           2,509,147  2,508,947  2,509,137  2,508,947
Selected Balance Sheet Data:
                                   Dec 31     Dec 31
                                    2000       1999
Current assets                   3,624,004  3,245,415
Total assets                     6,834,502  6,679,675
Current liabilities              1,612,279    945,056
Total liabilities                1,612,279    945,056
Stockholders' equity             5,222,223  5,734,619
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