ETC Announces Second Quarter 2009 Results

August 6, 2009


For Further Information contact: Dean Danner, President
                                 Boni Danner, VP Eng. & Treasurer
                                 (262) 542-5600 * http://www.etcia.com

ETC ANNOUNCES SECOND QUARTER 2009 RESULTS

WAUKESHA, WISCONSIN, August 6, 2009 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2009 results. Sales for the quarter were $462,963 compared to $550,507 for the 2008 second quarter. The net loss for the quarter was $59,430 or $0.02 per Class A common share, compared to net earnings of $24,932 or $0.01 per Class A common share for the second quarter of 2008.

Sales for the first six months of 2009 were $846,436 compared to sales of $975,071 in the first six months of 2008. The loss for the first six months of 2009 was $185,475 or $.07 per Class A common share, compared to a loss of $41,583 or $.02 per Class A common share for the first six months of 2008.

Commenting on the results, ETC President Dean Danner said, “Sales improved from the first quarter of 2009 but still lag 2008 sales for the quarter and six months. The national economic problems continue to have an effect on ETC’s market segment. Our customers have had to cope with revenue and budget issues, partially the result of changes in the mix between wireline and wireless telephone usage. Many customers have reduced services, implemented temporary repairs, or delayed infrastructure projects to defer capital expenses into future fiscal periods. We continue to work with our customers to identify economic solutions to our mutual benefit and hope to see improvement in sales and earnings as the year progresses.”

Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.

From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the length and severity of the current worldwide recession and the timing and strength of a subsequent recovery, 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, government 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.

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Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unreviewed)          (unreviewed)
                                   Three Months Ended     Six Months Ended
                                        June 30               June 30
                                    2009       2008       2009       2008
Net sales                          462,963    550,507    846,436    975,071
Cost of products sold              287,492    282,977    538,809    562,983
Gross profit                       175,471    267,530    307,627    412,088

Operating expenses:
 General and administrative         69,286     75,712    151,453     91,380
 Marketing and selling              89,962    100,674    184,791    203,080
 Research and development           68,885     60,452    146,145    147,925
                                   228,133    236,838    482,389    442,385

Earnings (loss) from operations    (52,662)    30,692   (174,762)   (30,297)
Other income (expense)              (6,768)    (5,760)   (10,713)   (11,286)

Earnings (loss) before
 income taxes                      (59,430)    24,932   (185,475)   (41,583)
Income taxes                             0          0          0          0
Net earnings (loss)                (59,430)    24,932   (185,475)   (41,583)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.02)      0.01      (0.07)     (0.02)
  Class B common                     (0.02)      0.01      (0.07)     (0.02)

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

Selected Balance Sheet Data:
                                (unreviewed)
                                   Jun 30     Dec 31
                                    2009       2008
Current assets                     574,258    568,878
Total assets                       612,910    759,167
Current liabilities              1,038,233    968,570
Total liabilities                1,101,560  1,044,563
Stockholders' equity              (488,650)  (285,396)


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