ETC Announces Fourth Quarter 2006 Results

WAUKESHA, Wis.–(BUSINESS WIRE)–Electronic Tele-Communications, Inc. (ETC) (Pink Sheets:ETCIA) today reported its fourth quarter and year end 2006 results. Sales for the quarter were $516,611 compared to $673,726 for the 2005 fourth quarter. The net loss was $53,664 or $0.02 per Class A common share, compared to a net loss of $901,832 or $0.36 per Class A common share for the fourth quarter of 2005. Sales for the 2006 year were $2,323,017, compared to 2005 sales of $2,689,269. The loss for 2006 was $364,693 or $0.15 per Class A Share, compared to a loss of $1,438,374 or $0.58 per Class A share for 2005. Included in both the fourth quarter and year end numbers for 2005 is an impairment adjustment to goodwill of $790,596 or $0.32 per class A common share.

Commenting on the results, ETC President Dean Danner said, “Cost containment initiatives implemented during the past year helped, but they were not sufficient to offset the continued contraction of the telephone industry demand in the area of voice announcement systems. ETC is continuing to look for alternative products and markets to reverse the overall sales trend. At the same time we are also looking at additional ways to reduce our operating costs to be in line with 2007 sales projections. Although the first quarter of 2007 continues to be soft, we believe that pending projects within our current customer base may provide improved results as the year progresses.”

Electronic Tele-Communications and its affiliates have been supplying voice announcers and Voice Application Platforms to domestic and foreign telephone utilities for over 70 years under the Audichron® and Digicept® brand names. ETC’s equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet. ETC, with corporate headquarters in Waukesha, Wisconsin also has operations in Norcross, Georgia.

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.