N E W S R E L E A S E FOR IMMEDIATE RELEASE For Further Information contact: Dean Danner, President Jeff Nigl, Chief Financial Officer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES FIRST QUARTER 1999 RESULTS WAUKESHA, WISCONSIN, April 22, 1999 The NASDAQ Stock Market ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA Electronic Tele-Communications, Inc. (ETC) today reported first quarter 1999 earnings of $177,858 or $0.08 per Class A share on sales of $3,269,107 compared to a first quarter 1998 loss of $244,083 or $0.09 per Class A share on sales of $2,646,417. Commenting on the 1999 results, ETC President Dean Danner said, "This marks our 4th consecutive quarter of positive earnings, and represents total earnings over the last 12 months of $0.25 per Class A share. The improved earnings are a result of changes we made in our Sales and Marketing Departments over the last 12 months, coupled with continued acceptance of our DNA Voice Platform products. The DNA Voice Platform is sold to local telephone companies, cellular telephone companies, long distance carriers, and other providers of telecommunications services. The DNA product is 100% compatible to newly emerging TTY requirements for the hearing disabled, and is Y2K compliant." Electronic Tele-Communications is a supplier of Voice Application Processing Platforms todomestic and foreign telephone utilities and of messaging systems to the commercial market. ETC's equipment, compatible with most telephone systems, provides a wide range ofaudio information and call handling services via the telephone network. ETC, with corporate headquarters in Waukesha, Wisconsin also has operations in Atlanta, Georgia andPleasanton, California. Certain statements in this press release which are not historical facts are "forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Any “forward-looking” statements are provided in compliance with the “Safe Harbor”provision of the Private Securities Litigation Reform Act of 1995. “Forward-looking” statements involve a number of risks and uncertainties including, but not limited to, technology changes, backlog, acquisitions, status of the economy, governmental regulations, sources of supply, expense structure, product mix, major customers, level of order flow, competition, litigation, and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission. Investors are encouraged to considerthe risks and uncertainties included in those filings. Electronic Tele-Communications, Inc. and Subsidiary Consolidated Statements of Operations:
Three Months Ended March 31 1999 1998 Net sales 3,269,107 2,646,417 Cost of product sold 1,583,745 1,513,599 Gross profit 1,685,362 1,132,818 Operating expenses: General and administrative 346,740 389,321 Marketing and selling 641,027 605,375 Research and development 434,117 456,202 1,421,884 1,450,898 Earnings (loss) from operations 263,478 (318,080) Other income (expense) (6,620) (15,603) Earnings (loss) before Income taxes 256,858 (333,683) Income taxes (benefit) 79,000 (89,600) Net earnings (loss) 177,858 (244,083) Basic and diluted earnings (loss) per share: Class A common 0.08 (0.09) Class B common 0.04 (0.13) Weighted average shares outstanding for basic and diluted 2,508,947 2,508,948 Selected Balance Sheet Data: Mar 31 Dec 31 1999 1998 Current assets 4,005,461 5,156,211 Total assets 7,266,381 8,438,766 Current liabilities 1,143,058 2,396,881 Total liabilities 1,179,389 2,449,274 Stockholders' equity 6,086,992 5,989,492 # # #