ETC Announces Second Quarter 2012 Results

July 27, 2012

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


WAUKESHA, WISCONSIN, July 27, 2012 	OTC – Pink Sheets

Electronic Tele-Communications, Inc. (ETC) today reported its second quarter 2012 results. Sales for the quarter were $322,928 compared to $304,281 for the 2011 second quarter. The net loss for the quarter was $27,822 or $0.01 per Class A common share, compared to a net loss of $12,132 or $0.00 per Class A common share for the second quarter of 2011.

Sales for the first six months of 2012 were $803,977 compared to sales of $684,930 in the first six months of 2011. Earnings for the first six months of 2012 were $18,823 or $0.01 per Class A common share, compared to a loss of $37,503 or $0.01 per Class A common share for the first six months of 2011.

Commenting on the results, ETC President Dean Danner said, “Although we experienced weak shipments of systems in the latter part of the quarter, we are able to report positive earnings for the first 6 months of 2012. Indications are that the weakness for the quarter was a result of timing differences, both in our sales and our overhead expenses. The additional overhead was mostly related to trademark renewals and third quarter sales are up, as are our customer’s requests for quotes. We remain cautiously encouraged by the market activity and anticipate positive earnings for the year. Our markets are still unpredictable but have shown some signs of more stability since the middle of 2011.”

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
                                    2012       2011       2012       2011
Net sales                          322,928    304,281    803,977    684,930
Cost of products sold              166,247    150,318    405,701    359,913
Gross profit                       156,681    153,963    398,276    325,017

Operating expenses:
 General and administrative         78,547     56,476    152,256    128,202
 Marketing and selling              49,370     47,553    106,897    101,691
 Research and development           49,162     54,672    105,375    118,127
                                   177,079    158,701    364,528    348,020

Earnings (loss) from operations    (20,398)    (4,738)    33,748    (23,003)
Other income (expense)              (7,424)    (7,394)   (14,925)   (14,500)

Earnings (loss) before
 income taxes                      (27,822)   (12,132)    18,823    (37,503)
Income taxes                             0          0          0          0
Net earnings (loss)                (27,822)   (12,132)    18,823    (37,503)

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

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

Selected Balance Sheet Data:
                                   Jun 30     Dec 31
                                    2012       2011
Current assets                     443,512    529,731
Total assets                       450,677    534,751
Current liabilities                959,984  1,040,062
Total liabilities                1,070,692  1,172,913
Stockholders' Deficit             (620,015)  (638,162)

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