ETC Announces 2004 Results

Waukesha, WI — January 31, 2005

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

WAUKESHA, WISCONSIN, January 31, 2005	                      OTC - Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC.                          Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its results for the fourth quarter and year 2004. Sales for the fourth quarter 2004 were $894,537 compared to $579,906 for the 2003 fourth quarter. Net earnings for the fourth quarter 2004 were $13,025 or $0.01 per Class A common share, compared to a loss of $219,738 or $0.09 per share for the fourth quarter of 2003. For the year 2004, ETC had a net loss of $31,354 or $0.01 per share on sales of $3,671,208, compared to a 2003 loss of $715,865 or $0.29 per share on sales of $3,026,479.

Commenting on the 2004 results, ETC President Dean Danner said, “The telecommunications equipment market finally began to recover in 2004 from what could be its worst recession in the last 50+ years, although it has not returned to the industry it was prior to the recession, and voice announcement system purchases continue to lag other parts of the market. ETC has now completed three profitable quarters in a row, but the recovery was not strong enough to overcome the first quarter’s loss.”

“In 2004, ETC improved its financial performance in terms of sales, earnings, and inventory levels. We generated positive cash flow for the year and are optimistic for continued improvements in 2005. We believe that the telecommunications industry is on the road to recovery, and we are continuing our efforts to make the Emcee and Z-10 products the products of choice with up to date features at competitive prices.” 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.

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)
                                   Three Months Ended   Twelve Months Ended
                                      December 31           December 31
                                    2004       2003       2004       2003
Net sales                          894,537    579,906  3,671,208  3,026,479
Cost of products sold              458,109    375,982  1,972,033  1,729,687
Gross profit                       436,428    203,924  1,699,175  1,296,792

Operating expenses:
 General and administrative        143,854    141,480    599,141    657,444
 Marketing and selling             200,303    193,704    775,219    806,133
 Research and development           78,246     86,369    349,633    538,762
                                   422,403    421,553  1,723,993  2,002,339

Earnings (loss) from operations     14,025   (217,629)   (24,818)  (705,547)
Other income (expense)                   0     (1,109)    (2,536)    (6,318)

Earnings (loss) before
 income taxes                       14,025   (218,738)   (27,354)  (711,865)
Income taxes                         1,000      1,000      4,000      4,000
Net earnings (loss)                 13,025   (219,738)   (31,354)  (715,865)

Basic and diluted earnings (loss) per share:
  Class A common                      0.01      (0.09)     (0.01)     (0.29)
  Class B common                      0.01      (0.09)     (0.01)     (0.29)

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
                                    2004       2003
Current assets                   1,446,212  1,512,830
Total assets                     2,567,991  2,734,197
Current liabilities                732,111    778,289
Total liabilities                  909,458  1,044,310
Stockholders' equity             1,658,533  1,689,887


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