ETC Announces Third Quarter 2012 Results

October 12, 2012

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


WAUKESHA, WISCONSIN, October 12, 2012 	OTC – Pink Sheets

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2012 results. Sales for the quarter were $575,299 compared to $485,633 for the 2011 third quarter. The net earnings for the quarter were $81,783 or $0.03 per Class A common share, compared to net earnings of $62,157 or $0.02 per Class A common share for the third quarter of 2011.

Sales for the first nine months of 2012 were $1,379,276 compared to sales of $1,170,563 in the first nine months of 2011. Earnings for the first nine months of 2012 were $100,606 or $0.04 per Class A common share, compared to earnings of $24,654 or $0.01 per Class A common share for the first nine months of 2011.

Commenting on the results, ETC President Dean Danner said, “Although we experienced weak sales of systems in the latter part of the second quarter, orders have steadily improved during the third quarter and are now ahead of last year. We remain cautiously encouraged by the market activity and when coupled with current orders we anticipate positive earnings for the year. Our markets are still unpredictable but we are currently projecting our best year in sales since 2007 and a second consecutive year of 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    Nine Months Ended
                                        September 30          September 30
                                    2012       2011       2012       2011
Net sales                          575,299    485,633  1,379,276  1,170,563
Cost of products sold              277,858    246,622    683,559    606,535
Gross profit                       297,441    239,011    695,717    564,028

Operating expenses:
 General and administrative         75,823     62,795    228,079    190,997
 Marketing and selling              59,115     54,861    166,012    156,552
 Research and development           73,255     51,485    178,630    169,612
                                   208,193    169,141    572,721    517,161

Earnings from operations            89,248     69,870    122,996     46,867
Other income (expense)              (7,465)    (7,713)   (22,390)   (22,213)

Earnings before
 income taxes                       81,783     62,157    100,606     24,654
Income taxes                             0          0          0          0
Net earnings                        81,783     62,157    100,606     24,654

Basic and diluted earnings per share:
  Class A common                      0.03       0.02       0.04       0.01
  Class B common                      0.03       0.02       0.04       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:
                                   Sep 30     Dec 31
                                    2012       2011
Current assets                     584,664    529,731
Total assets                       591,191    534,751
Current liabilities              1,022,389  1,040,062
Total liabilities                1,122,026  1,172,913
Stockholders' equity              (530,835)  (638,162)

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