ETC Announces 2002 Results

Waukesha, WI — March 6, 2003

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

WAUKESHA, WISCONSIN, March 6, 2003	                      OTC Bulletin Board
ELECTRONIC TELE-COMMUNICATIONS, INC.                          Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its results for the fourth quarter and year 2002.  Sales for the fourth quarter 2002 were $840,427 compared to $1,007,209 for the 2001 fourth quarter.  Net loss for the fourth quarter 2002 was $221,852 or $0.08 per Class A common share, compared to a loss of $203,105 or $0.08 per share for the fourth quarter of 2001.  For the year 2002, the net loss was $565,829 or $0.22 per share on sales of $3,978,830, compared to a 2001 loss of $2,169,853 or $0.86 per share on sales of $4,812,564.

Commenting on the 2002 results, ETC President Dean Danner said, “2002 continued the worst recession since ETC became a public company and possibly the worst industry recession in the last half century. According to TIA (Telecommunications Industry Association) capital spending on network and facilities, our primary market, dropped 49 percent in 2002 on top of a 26 percent drop in 2001. At the same time industry capital spending on wireless facilities, a second major market for ETC, dropped 25 percent in 2002 on top of a 16 percent drop in 2001. Capital spending reductions of this magnitude have had a very severe effect on our industry and ETC has suffered as both a direct supplier of products and as a sub-contractor to major companies in the industry.”

“The changes and cutbacks we implemented in the last eight quarters, largely employment related, produced significant savings in both operating expenses and manufacturing/service costs. We reduced staffing in all areas of the Company to operate at a level that will support our customer’s needs, but which leaves limited room to broaden our product lines or markets. We continue to keep our engineering staff focused on the Digicept Emcee and the Audichron Z-10 product lines. These product lines are the foundation for our future in the network office and customer premise markets respectively.  Development plans were scaled back and schedules were stretched out, but we continue to invest in our future with both product lines. The Digicept Emcee and the Z-10 are leading edge products, with new features, improved manufacturability, and competitive pricing. We intend them to be the foundation of our return to profitability,” 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.

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Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unaudited)
                                   Three Months Ended   Twelve Months Ended
                                      December 31           December 31
                                    2002       2001       2002       2001
Net sales                          840,427  1,007,209  3,978,830  4,812,564
Cost of products sold              477,850    484,435  2,024,450  2,896,443
Gross profit                       362,577    522,774  1,954,380  1,916,121

Operating expenses:
 General and administrative        171,085    194,733    711,625  1,015,361
 Marketing and selling             217,632    284,432  1,035,695  1,608,089
 Research and development          194,712    245,714    830,153  1,420,141
                                   583,429    724,879  2,577,473  4,043,591

Earnings (loss) from operations   (220,852)  (202,105)  (623,093)(2,127,470)
Other income (expense)                   0          0     (2,736)   (38,383)

Earnings (loss) before
 income taxes                     (220,852)  (202,105)  (625,829)(2,165,853)
Income taxes (benefit)               1,000      1,000    (60,000)     4,000
Net earnings (loss)               (221,852)  (203,105)  (565,829)(2,169,853)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.08)     (0.08)     (0.22)     (0.86)
  Class B common                     (0.12)     (0.08)     (0.26)     (0.86)

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

Selected Balance Sheet Data:
                                   Dec 31     Dec 31
                                    2002       2001
Current assets                   2,060,129  2,358,472
Total assets                     3,558,200  4,202,923
Current liabilities                797,753    733,183
Total liabilities                1,152,448  1,150,553
Stockholders' equity             2,405,752  3,052,370

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