ETC Announces First Quarter 2001 Results

Waukesha, WI—April 27, 2001


For Further Information contact: Dean Danner, President
                                 Jeff Nigl, Chief Financial Officer
                                 (262) 542-5600 * http://www.etcia.com
WAUKESHA, WISCONSIN, April 27, 2001                  	The NASDAQ Stock Market
ELECTRONIC TELE-COMMUNICATIONS, INC.                            Symbol - ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported a first quarter 2001 loss of $707,249 or $0.28 per Class A
share on sales of $1,671,825 compared to first quarter 2000 earnings of $76,678 or $0.03 per Class A share on sales of
$3,096,412.
Commenting on the 2001 results, ETC President Dean Danner said, “The economic slowdown that began last year deepened
through the first quarter of 2001 as evidenced by the drop in the stock market. The telecommunications and high tech
segments of the marketplace have been especially hard hit. ETC’s sales of voice platforms is dependent on new and/or
upgraded telecommunications voice facilities and services, and this market segment is depressed. Many of our customers
have delayed expansion and upgrade programs and therefore delayed the purchase of voice platforms.”
“To help offset the sales shortfall ETC has implemented a number of cost saving measures including extended layoffs in
manufacturing in addition to a 10% staff reduction. At the same time, we are continuing our development of applications
for our Emcee system. The Windows based Emcee system is the foundation of the next generation of voice platforms that
can work in both the emerging IP (Internet Protocol) and soft switch markets as well as traditional telephone switch
markets. It is vital that ETC be ready with as many applications as possible on the Emcee system when the economy and
telecommunications markets recover.” 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, compatible with most telephone systems,
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:
                                      (unaudited)
                                   Three Months Ended
                                        March 31
                                    2001       2000
Net sales                        1,671,825  3,096,412
Cost of products sold            1,005,689  1,655,399
Gross profit                       666,136  1,441,013
Operating expenses:
 General and administrative        301,314    339,264
 Marketing and selling             539,673    571,335
 Research and development          516,829    434,564
                                 1,357,816  1,345,163
Earnings (loss) from operations   (691,680)    95,850
Other income (expense)             (14,569)    (7,972)
Earnings (loss) before
 income taxes                     (706,249)    87,878
Income taxes                         1,000     11,200
Net loss                          (707,249)    76,678
Basic and diluted earnings (loss) per share:
  Class A common                     (0.28)      0.03
  Class B common                     (0.28)      0.03
Weighted average shares outstanding
 for basic and diluted           2,509,147  2,509,105
Selected Balance Sheet Data:
                                (unaudited)
                                   Mar 31     Dec 31
                                    2001       2000
Current assets                   2,973,149  3,624,004
Total assets                     6,055,972  6,834,502
Current liabilities              1,540,998  1,612,279
Total liabilities                1,540,998  1,612,279
Stockholders' equity             4,514,974  5,222,223
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