ETC Announces Third Quarter 2014 Results

November 12, 2014

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


WAUKESHA, WISCONSIN, November 12,2014 	OTC – Pink Sheets

Electronic Tele-Communications, Inc. (ETC) today reported its third quarter 2014 results. Sales for the quarter were $276,586 compared to $358,173 for the 2013 third quarter. The net loss for the quarter was $67,704 or $0.03 per Class A common share, compared to earnings of $3,628 or $0.00 per Class A common share for the third quarter of 2013.

Sales for the first nine months of 2014 were $1,220,583 compared to sales of $1,283,296 in the first nine months of 2013. The loss for the first nine months of 2014 was $45,457 or $0.02 per Class A common share, compared to earnings of $111,815 or $0.04 per Class A common share for the first nine months of 2013.

Results for the nine months ended September 30, 2013 included a $90,075 gain on the sale of an investment, which is contained in the other income line for the period. The one-time investment gain is related to the sale of securities the company was holding from a previously terminated pension plan.

Commenting on the results, ETC President Dean Danner said, “Sales continued to slow in the third quarter in both equipment sales and recurring revenue. Earnings were impacted by the lower sales and increases in health and benefit costs. ETC anticipates that sales for the remainder of 2014 will continue to be slow. Earnings will also continue to be impacted by higher benefit costs and ongoing product certification expenses.”

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
                                    2014       2013       2014       2013
Net sales                          276,586    358,173  1,220,583  1,283,296
Cost of products sold              139,257    182,196    654,593    655,521
Gross profit                       137,329    175,977    565,990    627,775

Operating expenses:
 General and administrative         79,759     65,149    241,051    228,132
 Marketing and selling              52,637     47,793    170,218    166,603
 Research and development           66,759     53,282    182,597    192,452
                                   199,155    166,224    593,866    587,187

Earnings (loss) from operations    (61,826)     9,753    (27,876)    40,588
Other income (expense)              (5,878)    (6,125)   (17,581)    71,227

Earnings (loss) before
 income taxes                      (67,704)     3,628    (45,457)   111,815
Income taxes                             0          0          0          0
Net earnings (loss)                (67,704)     3,628    (45,457)   111,815

Basic and diluted earnings (loss) per share:
  Class A common                     (0.03)      0.00      (0.02)      0.04
  Class B common                     (0.03)      0.00      (0.02)      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
                                    2014       2013
Current assets                     385,610    508,656
Total assets                       428,113    551,948
Current liabilities                827,837    873,003
Total liabilities                  838,908    917,286
Stockholders' equity              (410,795)  (365,338)

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