ETC Announces Third Quarter 2013 Results

November 1, 2013

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


WAUKESHA, WISCONSIN, November 1, 2013 	OTC – Pink Sheets

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2013 results. Sales for the quarter were $358,173 compared to $575,299 for the 2012 third quarter. The net earnings for the quarter were $3,628 or $0.00 per Class A common share, compared to net earnings of $81,783 or $0.03 per Class A common share for the third quarter of 2012.

Sales for the first nine months of 2013 were $1,283,296 compared to sales of $1,379,276 in the first nine months of 2012. Earnings for the first nine months of 2013 were $111,815 or $0.04 per Class A common share, compared to earnings of $100,606 or $0.04 per Class A common share for the first nine months of 2012.

Commenting on the results, ETC President Dean Danner said, “Sales in the third quarter slowed primarily due to timing issues, some of which were a result of government budget issues. In spite of the slowdown we were able to break even for the quarter and earnings for the year are slightly ahead of last year. The fourth quarter has started strong as we processed some of the budget delayed orders. We are cautiously encouraged by the market activity and anticipate positive earnings for the third year in a row.”

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
                                    2013       2012       2013       2012
Net sales                          358,173    575,299  1,283,296  1,379,276
Cost of products sold              182,196    277,858    655,521    683,559
Gross profit                       175,977    297,441    627,775    695,717

Operating expenses:
 General and administrative         65,149     75,823    228,132    228,079
 Marketing and selling              47,793     59,115    166,603    166,012
 Research and development           53,282     73,255    192,452    178,630
                                   166,224    208,193    587,187    572,721

Earnings from operations             9,753     89,248     40,588    122,996
Other income (expense)              (6,125)    (7,465)    71,227    (22,390)

Earnings before income taxes         3,628     81,783    111,815    100,606
Income taxes                             0          0          0          0
Net earnings                         3,628     81,783    111,815    100,606

Basic and diluted earnings per share:
  Class A common                      0.00       0.03       0.04       0.04
  Class B common                      0.00       0.03       0.04       0.04

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
                                    2013       2012
Current assets                     524,864    695,876
Total assets                       565,190    704,447
Current liabilities                910,869  1,061,235
Total liabilities                  966,224  1,149,802
Stockholders' equity              (401,034)  (445,355)

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