ETC Announces Third Quarter 2016 Results

November 8, 2016

For Further Information contact: Elizabeth Danner, President
                                 Boni Danner, Vice President
                                 (262) 542-5600 *



Electronic Tele-Communications, Inc. (ETC) today reports its third quarter 2016 results. Sales for the quarter were $225,388 compared to $202,136 for the third quarter of 2015. The net earnings for the quarter were $34,733 or $0.01 per Class A common share, compared to a net loss of $114,266 or $0.05 loss per Class A common share for the third quarter of 2015.

Sales for the first nine months of 2016 were $745,374, compared to $624,318 for the first nine months of 2015. The net earnings for the first nine months of 2016 were $119,371 or $0.05 per Class A common share, compared to a net loss for the first nine months of 2015 of $331,916 or $0.13 loss per Class A common share.

Commenting on the results, ETC President Elizabeth Danner said, "We continue to see savings from previous cost-savings measures and combined with higher sales allowed ETC to return to profitability in the third quarter."

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 systems 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
                                    2016       2015       2016       2015
Net sales                          225,388    202,136    745,374    624,318
Cost of products sold              101,007    107,670    342,027    357,171
Gross profit                       124,381     94,466    403,347    267,147

Operating expenses:
 General and administrative         39,814    102,958    121,422    236,424
 Marketing and selling              15,281     51,926     63,532    140,548
 Research and development           29,696     46,240     84,245    201,046
Total operating expenses:           84,791    201,124    269,199    578,018

Earnings (loss) from operations     39,590   (106,658)   134,148   (310,871)
Other income (expense)              (4,857)    (7,608)   (14,777)   (21,045)

Earnings (loss) before
 income taxes                       34,733   (114,266)   119,371   (331,916)
Income taxes                             0          0          0          0
Net earnings (loss)                 34,733   (114,266)   119,371   (331,916)

Basic and diluted earnings (loss) per share:
  Class A common                      0.01      (0.05)      0.05      (0.13)
  Class B common                      0.01      (0.05)      0.05      (0.13)

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
                                    2016       2015
Current assets                     275,500    245,412
Total assets                       288,487    267,546
Current liabilities                726,705  1,020,135
Total liabilities                  921,705  1,020,135
Stockholders' equity (deficit)    (633,218)  (752,589)

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