ETC Announces Third Quarter 2002 Results

Waukesha, WI — October 18, 2002

For Further Information contact: Dean Danner, President
                                 Jeff Nigl, Chief Financial Officer
                                 (262) 542-5600 * http://www.etcia.com

WAUKESHA, WISCONSIN, October 18, 2002	                OTC Bulletin Board
ELECTRONIC TELE-COMMUNICATIONS, INC.                    Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2002 results. Sales for the quarter were $728,375 compared to $918,605 for the 2001 third quarter. This yielded a net loss for the quarter of $235,356 or $0.09 per Class A common share, compared to a net loss of $535,708 or $0.21 per Class A common share for the third quarter of 2001. Sales for the first nine months of 2002 were $3,138,403, compared to 2001 nine month sales of $3,805,355. Losses for the first nine months of 2002 were $343,977 or $0.14 per Class A Share, compared to a loss of $1,966,748 or $0.78 per Class A share for the first nine months of 2001.

Commenting on the third quarter results, ETC President Dean Danner said, "After three straight quarters of improved sales, we experienced a significant setback during the third quarter. The summer months are normally slower for ETC, but when coupled with the general state of the telecommunications industry, the results were sales significantly below expectations. Our telephone utility customers have continued to restrain capital spending on both upgrade and expansion projects, choosing instead to defer these projects as long as possible. This lack of capital spending is being felt by nearly all of the telecommunications suppliers, not just ETC. This latest industry setback will push the slow recovery in our markets well into next year, and we therefore anticipate ETC's results to likewise improve slowly." 

"ETC returned to profitability in the second quarter, but sales shortfall in the third quarter resulted in additional losses for the year. In spite of the net losses, ETC's balance sheet continues to be debt free. We believe our cost reductions will enable ETC to return to profitability once the industry resumes the replacement of outdated equipment and the expansion of their facilities. ETC is continuing to expand the capabilities of our premier Emcee system in preparation for this industry turn around."

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.

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.

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Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unaudited)           (unaudited)
                                   Three Months Ended    Nine Months Ended
                                      September 30          September 30
                                    2002       2001       2002       2001
Net sales                          728,375    918,605  3,138,403  3,805,355
Cost of products sold              436,990    652,614  1,546,600  2,412,008
Gross profit                       291,385    265,991  1,591,803  1,393,347

Operating expenses:
 General and administrative        166,071    215,258    540,540    820,628
 Marketing and selling             241,392    308,529    818,063  1,323,657
 Research and development          182,278    273,032    635,441  1,174,427
                                   589,741    796,819  1,994,044  3,318,712

Earnings (loss) from operations   (298,356)  (530,828)  (402,241)(1,925,365)
Other income (expense)                   0     (3,880)    (2,736)   (38,383)

Earnings (loss) before
 income taxes                     (298,356)  (534,708)  (404,977)(1,963,748)
Income taxes (benefit)             (63,000)     1,000    (61,000)     3,000
Net earnings (loss)               (235,356)  (535,708)  (343,977)(1,966,748)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.09)     (0.21)     (0.14)     (0.78)
  Class B common                     (0.09)     (0.21)     (0.14)     (0.78)

Weighted average shares outstanding
 for basic and diluted           2,509,147  2,509,147  2,509,147  2,509,147

Selected Balance Sheet Data:
                                (unaudited)
                                  Sept 30     Dec 31
                                    2002       2001
Current assets                   2,278,176  2,358,472
Total assets                     3,870,011  4,202,923
Current liabilities                791,254    733,183
Total liabilities                1,161,618  1,150,553
Stockholders' equity             2,708,393  3,052,370


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