Elcom Receives Short-Term Working Capital Funding Several Major Clients Prepay or Accelerate Payment of Licence and other Fees NORWOOD, Mass., April 28 /PRNewswire-FirstCall/ -- Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:andOTC:ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , today announced that several of its larger clients have prepaid or agreed to accelerate the payment of invoices for several months in order to assist the Company's short-term working capital requirements. The Company believes that these prepayments and the acceleration of payments of certain invoice amounts due will enable the Company to operate, at a minimum, into June 2005, allowing the Company extra time to finalize its long-term funding. Robert J. Crowell, Elcom's Chairman and CEO, said, "We have always tried to do our best to keep our customers' satisfaction as high as possible. Indeed, we have always believed that our customers and references therefrom, are one of our greatest assets for the future of Elcom." Mr. Crowell continued, "Several of our customers have assisted Elcom in its short-term cash flow requirements enabling Elcom to 'bridge' to its potential long-term funding. I can state with all sincerity that nothing is more gratifying than major customers coming to your aid on their own volition. I believe we are now significantly better positioned, given overall circumstances, to finalize our strategic funding and I would like, on behalf of Elcom, to thank the clients involved." The Company is, as previously announced, a member of the consortium headed by PA Consulting, which is the preferred bidder for the U.K.'s Office of Government Commerce's Zanzibar eMarketplace project. The Company believes the agreement for the Zanzibar project, while delayed several times, will be awarded within the next 30 to 45 days; however, there can be no assurance of the contract being awarded or the date thereof. The earliest the Zanzibar agreement can be signed is 15 (fifteen) business days after the announcement of the contract award. This is due to a waiting period commonly referred to as the Alcatel waiting period. Liquidity and Capital Resources As previously announced, the Company required additional financing in the first quarter of 2005 in order to continue to operate. The Company has received bridge loans from the Chairman and CEO and Vice Chairman and Director totaling $200,000 through March 31, 2005. The Company is in the process of discussing the potential of a common stock issuance (under Regulation S of the Securities and Exchange Commission Regulations) under its AIM (U.K.) listing. The bridge loans, together with the short-term working capital assistance announced herein, are intended to provide the Company with the necessary funds to operate while the Company continues long-term fundraising discussions. The Company is currently in discussions with several parties regarding the raising of additional funds, however there can be no assurance that the Company will receive any such funding or, if raised, on what terms or what the timing thereof may be, or that any amount the Company is able to raise (if any), will be adequate to support the Company's working capital requirements until it achieves profitable operations. The Company has been informed by a U.K. stockbroker that it has received preliminary indications of interest from investors in an AIM issuance of Elcom shares. However, the terms and amount thereof are under discussion and there can be no assurance that this issuance will be consummated, or on what terms. Any such issuance is expected to result in substantial dilution to existing shareholders. Further, it is anticipated that there will be various pre- conditions to the consummation of such financing, including a requirement that the funds or commitments would be held in abeyance or escrow and not be invested in the Company's shares, unless and until the U.K.'s Office of Government Commerce's Zanzibar agreement is signed between Elcom and PA Consulting. Some or all of the funds might be held in abeyance or escrow until after additional common shares are authorized at the Company's annual stockholders meeting on June 29, 2005. It is the Company's current belief that the Zanzibar contract will not be awarded until mid to late May. If there is a further significant delay in the projected contract award of the Zanzibar project, additional short-term funding will be required during June. Without such additional funding or further assistance, such as acceleration of further invoices by a major client, the Company would likely be forced to curtail operations and seek protection under bankruptcy laws. About Elcom International, Inc. Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:and ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , operates elcom, inc ("Elcom"), an international B2B Commerce Service Provider offering affordable solutions for buyers, sellers and commerce communities to automate many or all of their purchasing processes and conduct business online. PECOS, Elcom's remotely-hosted flagship solution, enables enterprises of all sizes to achieve the many benefits of B2B eCommerce without the burden of infrastructure investment and ongoing content and system management. http://www.elcominternational.com/ Company Product Offerings For detailed information on our PECOS(TM) eMarketplace and eProcurement and optional Dynamic Trading solutions, please visit our website at http://www.elcominternational.com/products.htm Statement Under the Private Securities Litigation Reform Act Except for the historical information contained herein, the matters discussed in this press release may include forward-looking statements or information. All statements, other than statements of historical fact, including, without limitation, those with respect to the Company's objectives, plans and strategies set forth herein and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects", "forecasts" or similar expressions, are forward-looking statements. Although the Company believes that such forward-looking statements are reasonable, it can give no assurance that the Company's expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties which could cause the Company's future results to differ materially from those anticipated, including: (i) the Company's history of ongoing operating losses; (ii) the overall marketplace and clients' acceptance and usage of eCommerce software systems, including corporate demand therefor, the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors, control of expenses, revenue generation by the acquisition of new customers, the acceptance of the eProcurement Scotland program by public entities, and corporate demand for eProcurement and eMarketplace solutions; (iii) the consequent results of operations given the aforementioned factors; (iv) the awarding and/or timing thereof of the Zanzibar contract to PA Consulting with the Company as subcontractor thereto; and (v) the requirement for the Company to raise additional working capital to fund operations in June 2005 and the availability and terms of any such funding to the Company. Without any such funding, the Company will have no option but to seek protection under bankruptcy laws. Other risks are detailed from time to time in the Company's Quarterly Reports on Form 10-QSB for the quarterly periods ended March 31, June 30, and September 30, 2004, as well as the Company's 2004 annual report on Form 10-KSB, and in its other SEC reports and statements. The Company assumes no obligation to update any of the information contained or referenced in this press release. DATASOURCE: Elcom International, Inc. CONTACT: Investor Relations of Elcom International, Inc., Web site: http://www.elcom.com/

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