ETC Announces Third Quarter 2011 Results

October 20, 2011


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

ETC ANNOUNCES THIRD QUARTER 2011 RESULTS

WAUKESHA, WISCONSIN, OCT 20, 2011 	OTC – Pink Sheets
ELECTRONIC TELE-COMMUNICATIONS, INC.	Symbol – ETCIA

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2011 results. Sales for the quarter were $485,633 compared to $510,465 for the 2010 third quarter. The net earnings for the quarter were $61,807 or $0.02 per Class A common share, compared to net earnings of $80,311 or $0.03 per Class A common share for the third quarter of 2010.

Sales for the first nine months of 2011 were $1,170,563 compared to sales of $1,293,687 in the first nine months of 2010. Net earnings for the first nine months of 2011 were $24,304 or $0.01 per Class A common share, compared to a net loss of $41,511 or $0.02 per Class A common share for the first nine months of 2010.

Commenting on the results, ETC President Dean Danner said, “On slightly lower sales compared to 2010, ETC was able to generate a profit in both the third quarter and for the first nine months of 2011 due to ongoing control of overhead expenses and manufacturing costs. There is still weakness and uncertainty in the telecommunications market, but ETC believes that the financial performance of the Company will continue to show improvement. Still, the weakness in parts of the telecommunications market, the ongoing instability in the financial markets, and the sluggishness in the national economy together continue to limit our opportunities for growth.”

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     Nine Months Ended
                                      September 30          September 30
                                    2011       2010       2011       2010
Net sales                          485,633    510,465  1,170,563  1,293,687
Cost of products sold              246,622    247,696    606,535    711,685
Gross profit                       239,011    262,769    564,028    582,002

Operating expenses:
 General and administrative         62,795     73,354    190,997    221,954
 Marketing and selling              54,861     54,817    156,552    167,933
 Research and development           51,485     46,431    169,612    173,805
 Restructuring Charge                    0          0          0     35,151
                                   169,141    174,602    517,161    598,843

Earnings (loss) from operations     69,870     88,167     46,867    (16,841)
Other income (expense)              (7,713)    (7,856)   (22,213)   (24,670)

Earnings (loss) before
 income taxes                       62,157     80,311     24,654    (41,511)
Income taxes                           350          0        350          0
Net earnings (loss)                 61,807     80,311     24,304    (41,511)

Basic and diluted earnings (loss) per share:
  Class A common                      0.02       0.03       0.01      (0.02)
  Class B common                      0.02       0.03       0.01      (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)
                                   Sep 30     Dec 31
                                    2011       2010
Current assets                     504,225    480,789
Total assets                       510,074    487,542
Current liabilities              1,076,509  1,010,789
Total liabilities                1,220,430  1,187,922
Stockholders' equity              (710,356)  (700,380)


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