ETC Announces Second Quarter 2010 Results

August 6, 2010


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

ETC ANNOUNCES SECOND QUARTER 2010 RESULTS

WAUKESHA, WISCONSIN, August 6, 2010 OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2010 results. Sales for the quarter were $313,191 compared to $462,963 for the 2009 second quarter. The net loss for the quarter was $69,428 or $0.03 per Class A common share, compared to a net loss of $59,430 or $0.02 per Class A common share for the second quarter of 2009.

Sales for the first six months of 2010 were $783,222 compared to sales of $846,436 in the first six months of 2009. The loss for the first six months of 2010 was $121,822 or $0.05 per Class A common share, compared to a loss of $185,475 or $0.07 per Class A common share for the first six months of 2009.

Commenting on the results, ETC President Dean Danner said, “Continuing weakness in both the telecommunications equipment market and the time / temperature announcement services market was evident throughout the quarter. Steps taken in the 2010 first quarter to reduce our fixed operating costs, including a reduction in our workforce, helped minimize the loss for the quarter. We project sales to continue to be erratic throughout the balance of the year. When the economic recovery begins to stabilize the market, we anticipate our customers will begin to implement programs to replace obsolete equipment in their networks. We believe that these programs coupled with the full effect of our cost reductions will position the Company to return to positive earnings.”

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:
                                      (unreviewed)          (unreviewed)
                                   Three Months Ended     Six Months Ended
                                        June 30               June 30
                                    2010       2009       2010       2009
Net sales                          313,191    462,963    783,222    846,436
Cost of products sold              194,973    287,492    463,989    538,809
Gross profit                       118,218    175,471    319,233    307,627

Operating expenses:
 General and administrative         71,381     69,286    148,600    151,453
 Marketing and selling              47,712     89,962    113,116    184,791
 Research and development           59,843     68,885    127,374    146,145
 Restructuring Charge                    0          0     35,151          0
                                   178,936    228,133    424,241    482,389

Earnings (loss) from operations    (60,718)   (52,662)  (105,008)  (174,762)
Other income (expense)              (8,710)    (6,768)   (16,814)   (10,713)

Earnings (loss) before
 income taxes                      (69,428)   (59,430)  (121,822)  (185,475)
Income taxes                             0          0          0          0
Net earnings (loss)                (69,428)   (59,430)  (121,822)  (185,475)

Basic and diluted earnings (loss) per share:
  Class A common                     (0.03)     (0.02)     (0.05)     (0.07)
  Class B common                     (0.03)     (0.02)     (0.05)     (0.07)

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
                                    2010       2009
Current assets                     426,553    512,673
Total assets                       437,409    533,655
Current liabilities              1,198,977  1,112,312
Total liabilities                1,236,972  1,162,973
Stockholders' equity              (799,563)  (629,318)


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