ETC Announces Fourth Quarter and Year End 2009 Results

March 5, 2010


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

ETC ANNOUNCES FOURTH QUARTER AND YEAR END 2009 RESULTS

WAUKESHA, WISCONSIN, March 5, 2010 	OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC.	Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter and year end 2009 results. Sales for the quarter were $331,185 compared to $558,775 for the 2008 fourth quarter. The net loss for the quarter was $84,492 or $0.03 per Class A common share, compared to net earnings of $30,123 or $0.01 per Class A common share for the fourth quarter of 2008. Sales for the 2009 year were $1,560,723 compared to 2008 sales of $1,854,558. The loss for 2009 was $347,241 or $0.14 per Class A common share, compared to a loss of $138,064 or $0.06 per Class A common share for 2008.

Commenting on the results, ETC President Dean Danner said, “Throughout 2009 we commented in connection with our quarterly reports on the fact that sales were lagging the prior year, which ended the year with a 15% reduction in overall sales. This sales reduction was felt across all of our product lines as our customers dealt with the national economic recession. The result of lower sales was an increased loss in 2009 when compared to 2008, and reduced cash flow for the Company. As we enter 2010 we have taken a number of steps to reduce our fixed operating costs, including but not limited to a reduction in our employment. These actions will slowly reduce operating expenses during the year. When combined with projected improvements in the marketplace, we anticipate the Company will return to positive 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 adverse effects of the recent 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, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.

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Electronic Tele-Communications, Inc.

Statements of Operations:
                                      (unaudited)          (unaudited)
                                   Three Months Ended   Twelve Months Ended
                                      December 31           December 31
                                    2009       2008       2009       2008
Net sales                          331,185    558,775  1,560,723  1,854,558
Cost of products sold              193,679    303,842    962,970  1,078,742
Gross profit                       137,506    254,933    597,753    775,816

Operating expenses:
 General and administrative         69,488     65,910    292,172    232,802
 Marketing and selling              79,805    108,231    349,678    391,179
 Research and development           67,069     45,072    279,635    270,362
                                   216,362    219,213    921,485    894,343

Earnings (loss) from operations    (78,856)    35,720   (323,732)  (118,527)
Other income (expense)              (5,636)    (5,597)   (23,509)   (19,537)

Earnings (loss) before
 income taxes                      (84,492)    30,123   (347,241)  (138,064)
Income taxes                             0          0          0          0
Net earnings (loss)                (84,492)    30,123   (347,241)  (138,064)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.03)      0.01      (0.14)     (0.06)
  Class B common                     (0.03)      0.01      (0.14)     (0.06)

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
                                    2009       2008
Current assets                     512,673    691,352
Total assets                       533,655    759,167
Current liabilities              1,112,312    968,570
Total liabilities                1,162,973  1,044,563
Stockholders' equity (deficit)    (629,318)  (285,396)


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