ETC Announces Second Quarter 2008 Results

WAUKESHA, Wis.--(Business Wire)--
Electronic Tele-Communications, Inc. (ETC) (Pink Sheets:ETCIA)
today reported its second quarter 2008 results. Sales for the quarter
were $550,507 compared to $524,202 for the 2007 second quarter. Net
earnings were $24,932 or $0.01 per Class A common share, compared to a
net loss of $178,320 or $0.07 per Class A common share for the second
quarter of 2007.

Sales for the first six months of 2008 were $975,071 compared to
sales of $1,098,506 in the first six months of 2007. The loss for the
first six months of 2008 was $41,583 or $0.02 per Class A common
share, compared to a loss of $241,353 or $0.10 per Class A common
share for the first six months of 2007.

Commenting on the results, ETC President Dean Danner said, "The
return to earnings for the second quarter is a start, but with
traditionally slow summer sales and numerous national economic issues
including uncertainty related to the election year, we have a long way
to go. Although parts of the telecom industry have improved, telephone
system manufacturing and specifically our segment of the industry have
yet to recover. We are continuing to invest in our product designs and
to look for applications outside of our traditional customer base."

Electronic Tele-Communications supplies voice announcers and Voice
Application Platforms to domestic and foreign telephone utilities
under the Audichron(R) and Digicept(R) brand names. 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 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.

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*T
Electronic Tele-Communications, Inc.

Statements of Operations:

(unreviewed) (unreviewed)
Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
Net sales 550,507 524,202 975,071 1,098,506
Cost of products sold 282,977 313,775 562,983 654,650
Gross profit 267,530 210,427 412,088 443,856

Operating expenses:
General and
administrative 75,712 103,154 91,380 215,609
Marketing and selling 100,674 110,595 203,080 216,892
Research and
development 60,452 72,611 147,925 143,860
Relocation costs 0 95,272 0 95,272
236,838 381,632 442,385 671,633

Earnings (loss) from
operations 30,692 (171,205) (30,297) (227,777)
Other income (expense) (5,760) (7,115) (11,286) (13,576)

Earnings (loss) before
income taxes 24,932 (178,320) (41,583) (241,353)
Income taxes 0 0 0 0
Net earnings (loss) 24,932 (178,320) (41,583) (241,353)

Basic and diluted
earnings (loss) per
share:
Class A common 0.01 (0.07) (0.02) (0.10)
Class B common 0.01 (0.07) (0.02) (0.10)

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

Selected Balance Sheet Data:

(unreviewed)
Jun 30 Dec 31
2008 2007
Current assets 669,518 693,445
Total assets 758,554 802,348
Current liabilities 981,284 970,829
Total liabilities 1,069,943 1,072,154
Stockholders' equity (311,389) (269,806)
*T

Electronic Tele-Communications, Inc.
Dean Danner, President
Boni Danner, VP Eng. & Treasurer
(262) 542-5600
http://www.etcia.com

Copyright Business Wire 2008