ETC Announces Third Quarter 2017 Results

December 4, 2017

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



Electronic Tele-Communications, Inc. (ETC) today reports its third quarter 2017 results. Sales were $131,079 for the quarter, compared to $225,388 for the third quarter of 2016. The net loss for the quarter was $2,089 or $0.00 per Class A common share, compared to net earnings of $34,733 or $0.01 per Class A common share for the third quarter of 2016.

Sales for the first nine months of 2017 were $458,092, compared to $745,374 for the first nine months of 2016. The net earnings for the first nine months of 2017 were $21,540 or $0.01 per Class A common share, compared to net earnings of $119,371 or $0.05 per Class A common share for the first nine months of 2016.

Commenting on the results, ETC President Elizabeth Danner said, "Sales continue to lag projections for the year which led to a slight loss in the third quarter, but we remained slightly profitable for the first nine months of the year."

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 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
                                    2017       2016       2017       2016
Net sales                          131,079    225,388    458,092    745,374
Cost of products sold               59,001    101,007    210,526    342,027
Gross profit                        72,078    124,381    247,566    403,347

Operating expenses:
 General and administrative         33,583     39,814    100,480    121,422
 Marketing and selling               8,928     15,281     30,688     63,532
 Research and development           26,803     29,696     80,459     84,245
Total operating expenses:           69,314     84,791    211,627    269,199

Earnings (loss) from operations      2,764     39,590     35,939    134,148
Other income (expense)              (4,853)    (4,857)   (14,399)   (14,777)

Earnings (loss) before
 income taxes                       (2,089)    34,733     21,540    119,371
Income taxes                             0          0          0          0
Net earnings (loss)                 (2,089)    34,733     21,540    119,371

Basic and diluted earnings (loss) per share:
  Class A common                      0.00       0.01       0.01       0.05
  Class B common                      0.00       0.01       0.01       0.05

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
                                    2017       2016
Current assets                     248,722    297,901
Total assets                       260,797    308,364
Current liabilities                657,592    681,699
Total liabilities                  792,592    861,699
Stockholders' equity (deficit)    (531,795)  (553,335)

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