ETC Announces Second Quarter 2011 Results

August 10, 2011


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

ETC ANNOUNCES SECOND QUARTER 2011 RESULTS

WAUKESHA, WISCONSIN, Aug 10, 2011 	OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC.	Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2011 results. Sales for the quarter were $304,281 compared to $313,191 for the 2010 second quarter. The net loss for the quarter was $12,132 or less than $0.01 per Class A common share, compared to a net loss of $69,428 or $0.03 per Class A common share for the second quarter of 2010.

Sales for the first six months of 2011 were $684,930 compared to sales of $783,222 in the first six months of 2010. The loss for the first six months of 2011 was $37,503 or $0.03 per Class A common share, compared to a loss of $121,822 or $0.05 per Class A common share for the first six months of 2010.

Commenting on the results, ETC President Dean Danner said, “In spite of continued weakness and uncertainty in the telecommunications market, ETC was able to nearly break even for the second quarter on slightly less sales than a year ago. Looking forward into the 2011 third quarter, ETC has already booked more equipment sales than we did during the entire second quarter of 2011. This increase in bookings along with ongoing cost containment programs, leads us to believe that the financial performance of the Company will continue to improve. However, uncertainty remains in the telecommunications market due to the continued instability in the financial markets and the national economy.”

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
                                    2011       2010       2011       2010
Net sales                          304,281    313,191    684,930    783,222
Cost of products sold              150,318    194,973    359,913    463,989
Gross profit                       153,963    118,218    325,017    319,233

Operating expenses:
 General and administrative         56,476     71,381    128,202    148,600
 Marketing and selling              47,553     47,712    101,691    113,116
 Research and development           54,672     59,843    118,127    127,374
 Restructuring Charge                    0          0          0     35,151
                                   158,701    178,936    348,020    424,241

Earnings (loss) from operations     (4,738)   (60,718)   (23,003)  (105,008)
Other income (expense)              (7,394)    (8,710)   (14,500)   (16,814)

Earnings (loss) before
 income taxes                      (12,132)   (69,428)   (37,503)  (121,822)
Income taxes                             0          0          0          0
Net earnings (loss)                (12,132)   (69,428)   (37,503)  (121,822)

Basic and diluted earnings (loss) per share:
  Class A common                      0.00      (0.03)     (0.01)     (0.05)
  Class B common                      0.00      (0.03)     (0.01)     (0.05)

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
                                    2011       2010
Current assets                     401,641    480,789
Total assets                       407,023    487,542
Current liabilities                991,696  1,010,789
Total liabilities                1,146,688  1,187,922
Stockholders' equity              (739,665)  (700,380)


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