ETC Announces Second Quarter 2005 Results

Waukesha, WI -- August 4, 2005

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

WAUKESHA, WISCONSIN, August 4, 2005	                      OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC.                          Symbol - ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2005 results. Sales for the quarter were $647,438 compared to $1,022,982 for the 2004 second quarter. The net loss was $196,951 or $0.08 per Class A common share, compared to net earnings of $22,153 or $0.01 per Class A common share for the second quarter of 2004.

Sales for the first six months of 2005 were $1,396,771, compared to 2004 six month sales of $1,839,655. The loss for the first six months of 2005 was $367,654 or $0.15 per Class A Share, compared to a loss of $72,897 or $0.03 per Class A share for the first six months of 2004.

Commenting on the second quarter results, ETC President Dean Danner said, “2005 has seen capital spending in our market segment revert back to the levels of 2003. Our customers have delayed office upgrade and replacement projects, expending their resources on fiber optics and related equipment to compete with the cable industry. Although we are working with a number of customers on a number of projects, we don’t anticipate significant improvement until the fourth quarter of 2005 and into 2006.”

"In Spite of the poor sales performance of the first half of 2005, cash reserves coupled with some sales of existing inventory and our services business, has enabled ETC to meet our cash flow needs without borrowing against our line of credit,” Danner said.” “As we have over the last several years, we continue to exert tight control over our overhead and capital expenditures while continuing to evolve and expand the capabilities of our Emcee system.”

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: business conditions in the telecommunications industry, the Company’s ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, governmental regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties.

- MORE -

Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unaudited)           (unaudited)
                                   Three Months Ended     Six Months Ended
                                        June 30               June 30
                                    2005       2004       2005       2004
Net sales                          647,438  1,022,982  1,396,771  1,839,655
Cost of products sold              414,617    548,466    887,397  1,000,852
Gross profit                       232,821    474,516    509,374    838,803

Operating expenses:
 General and administrative        165,140    150,880    326,158    314,715
 Marketing and selling             195,239    192,004    395,943    377,897
 Research and development           69,393    107,386    154,927    214,904
                                   429,772    450,270    877,028    907,516

Earnings (loss) from operations   (196,951)    24,246   (367,654)   (68,713)
Other income (expense)                   0     (1,093)         0     (2,184)

Earnings (loss) before
 income taxes                     (196,951)    23,153   (367,654)   (70,897)
Income taxes                             0      1,000          0      2,000
Net earnings (loss)               (196,951)    22,153   (367,654)   (72,897)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.08)      0.01      (0.15)     (0.03)
  Class B common                     (0.08)      0.01      (0.15)     (0.03)

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)
                                   Jun 30     Dec 31
                                    2005       2004
Current assets                     989,011  1,446,212
Total assets                     2,071,593  2,567,991
Current liabilities                647,704    732,111
Total liabilities                  780,714    909,458
Stockholders' equity             1,290,879  1,658,533


                                        # # #