ETC Announces Fourth Quarter and Year End 2014 Results

March 12, 2014

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


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

Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter 2014 results. Sales for the quarter were $256,165 compared to $431,846 for the 2013 fourth quarter. The net loss for the quarter was $51,678 or $0.02 per Class A common share, compared to net earnings of $35,696 or $0.01 per Class A common share for the fourth quarter of 2013.

Sales for the 2014 year were $1,476,748 compared to 2013 sales of $1,715,142. The net loss for 2014 was $97,135 or $0.04 per Class A common share, compared to earnings of $147,511 or $0.06 per Class A common share for 2013.

Commenting on the results, ETC President Dean Danner said, “2014 was a disappointing year for ETC. Sales lagged 2013 and resulted in a loss for the year after 3 years of positive earnings. In spite of the loss, ETC was able to maintain the general level of our back rent due to an affiliate which continues as our primary liability. Our public telephone network markets stabilized early in the year but slowed significantly as the year progressed. At the same time our government market also slowed down as the mid-term elections brought in congressional change and budget uncertainty. As we enter 2015 we do not expect improvement in either the government market or the public telephone market in the near term. We anticipate a tough 2015 year in both sales and earnings and are taking steps to reduce expenses including but not limited to employment expenses.”

Danner continued, “In June 2015 I will turn 65 and intend to step down as President of ETC. This is not a recent decision, but one that has been planned for many years. At the next Board of Director’s meeting in May, Elizabeth Danner will be nominated to become President of ETC effective July 1, 2015. I will be nominated to become Chairman of the Board and will assume a part time consultant’s role with the Company. ETC is a great Company with wonderful people working for it. I look forward to the future of ETC under Elizabeth’s guidance.”

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 and Comprehensive Income (Loss):
                                      (unreviewed)            (unreviewed)
                                    Three Months Ended     Twelve Months Ended
                                        December 31            December 31
                                     2014        2013        2014        2013
Net sales                           256,165     431,846   1,476,748   1,715,142
Cost of products sold               123,559     209,389     778,152     864,910
Gross profit                        132,606     222,457     698,596     850,232

Operating expenses:
 General and administrative          70,848      65,430     311,899     293,562
 Marketing and selling               48,800      53,879     219,018     220,482
 Research and development            58,625      61,412     241,222     253,864
                                    178,273     180,721     772,139     767,908

Earnings (loss) from operations     (45,667)     41,736     (73,543)     82,324
Other income (expense)               (6,011)     (6,040)    (23,592)     65,187

Earnings (loss) before
 income taxes                       (51,678)     35,696     (97,135)    147,511
Income taxes                              0           0           0           0
Net earnings (loss)                 (51,678)     35,696     (97,135)    147,511

Other comprehensive income (loss),
 net of tax                               0           0           0           0
Total comprehensive income (loss)    (51,678)     35,696     (97,135)    147,511

Basic and diluted earnings (loss) per share:
  Class A common                      (0.02)       0.01       (0.04)       0.06
  Class B common                      (0.02)       0.01       (0.04)       0.06

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

Selected Balance Sheet Data:
                                    Dec 31      Dec 31
                                     2014        2013
Current assets                      334,351     508,656
Total assets                        372,235     551,948
Current liabilities                 834,708     873,003
Total liabilities                   834,708     917,286
Stockholders' equity (deficit)     (462,473)   (365,338)

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