ETC Announces Second Quarter 2012 Results

Electronic Tele-Communications, Inc. (ETC) (Pink Sheets: ETCIA)today reported its second quarter 2012 results. Sales for the quarter were $322,928 compared to $304,281 for the 2011 second quarter. The net loss for the quarter was $27,822 or $0.01 per Class A common share, compared to a net loss of $12,132 or $0.00 per Class A common share for the second quarter of 2011.

Sales for the first six months of 2012 were $803,977 compared to sales of $684,930 in the first six months of 2011. Earnings for the first six months of 2012 were $18,823 or $0.01 per Class A common share, compared to a loss of $37,503 or $0.01 per Class A common share for the first six months of 2011.

Commenting on the results, ETC President Dean Danner said, “Although we experienced weak shipments of systems in the latter part of the quarter, we are able to report positive earnings for the first 6 months of 2012. Indications are that the weakness for the quarter was a result of timing differences, both in our sales and our overhead expenses. The additional overhead was mostly related to trademark renewals and third quarter sales are up, as are our customer’s requests for quotes. We remain cautiously encouraged by the market activity and anticipate positive earnings for the year. Our markets are still unpredictable but have shown some signs of more stability since the middle of 2011.”

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.