Elcom Shares Admitted to AIM/London Stock Exchange Elcom Raises $3.7 Million and Lists Shares on the AIM Market NORWOOD, Mass., April 16 /PRNewswire-FirstCall/ -- Elcom International, Inc. (BULLETIN BOARD: ELCO) and (AIM: ELC and ELCS), a leading international provider of remotely-hosted eProcurement and eMarketplace solutions (the "Company"), today announced that it has successfully completed a private placement of 29,777,573 shares of its common stock to investors in the U.K. pursuant to Regulation S of the Securities Act of 1933, as amended, (the "Placing"), for aggregate gross proceeds to the Company of $3.7 million (approximately $3.2 million net to the Company). Those shares have been admitted to the London Stock Exchange's AIM market ("AIM") and are expected to begin trading today under the symbol 'ELCS'. Elcom's common shares, which trade on the OTCBB under the symbol 'ELCO', will also trade on the AIM under the symbol 'ELC'. Robert J. Crowell, Elcom International's Chairman and CEO, said, "Elcom's admission to AIM is a very positive step forward for the Company. We believe this funding and subsequent listing on the AIM Exchange, will provide Elcom with a new capital base to support its future growth. The placement of shares will also add a new base of financial institutions and individuals as shareholders of Elcom in the U.K." Mr. Crowell also stated, "Under Regulation S, the Management of the Company was unable to participate in the placing of the common shares for listing on the AIM. The Management stood ready to invest up to $200,000 in convertible debentures if the maximum of 1.9 million pounds sterling was not achieved by the Placing. However due to sufficient demand, which increased the size of the Placing to 2.0 million pounds sterling, the Company was able to rely solely on the funding generated by the Placing. With funding now in place, Elcom has the resources to move itself back into the market and begin to present its solutions as a 'best of breed' eProcurement and eMarketplace system for public sector and commercial companies in the U.K. and U.S." With Smith & Williamson Corporate Finance Limited as nominated adviser to the Company and Durlacher Limited as the Company's broker, Elcom has issued 29,777,573 new common shares in the Placing, representing approximately 48.6% of the shares outstanding after the placement and approximately 39.2% of the fully-diluted shares (assuming conversion of the Company's outstanding Senior Convertible Debentures and exercisable and dilutive stock options). The new Elcom shares of common stock have been issued in reliance on the exemption from registration under Regulation S for offers and sales of securities outside the U.S. Under Regulation S, the holders of the new shares are prohibited from reselling such shares in the U.S., to U.S. persons or entities, or for the benefit or account of a U.S. person, for a one-year period which commenced on April 8, 2004. During this one-year period, holders of the new shares may otherwise trade such shares in the United Kingdom through the facilities of the AIM Exchange and outside the U.S. pursuant to Regulation S and subject to securities laws applicable in the jurisdiction in which such shares are traded. The shares listed under the symbol 'ELCS' (the 'S' denoting Regulation S shares) will trade on the AIM Exchange but will not commingle with the Company's stock traded on the OTCBB (and AIM under the symbol 'ELC'), until and unless the Company registers the shares issued under Regulation S via an S-1 Registration Statement with the SEC. The funds to be derived from such proposed sale of common shares will be used to support the Company's working capital requirements until the Company achieves positive cash flow, which management believes will occur in 2005. The Company has raised 2.0 million pounds sterling (approximately $3.7 million), with approximately $3.2 in net proceeds to the Company, via this issuance and sale of common shares in the U.K. at a price equal to the conversion rate of the Company's recent placement(s) of Convertible Debentures of $0.1246 per share. See "Intention to Issue and Sell Common Shares under Regulation S in the U.K. and List Those Shares on the London Alternative Investment Market" in the Company's Form 10-K filed on March 29, 2004. The agreement to purchase and pricing of this sale of common shares occurred several days prior to the AIM Exchange listing and the pricing thereof is not necessarily indicative of the price at which the Regulation S shares will trade on the AIM Exchange. Certain Elcom stockholders, specifically the Chairman and CEO and Vice Chairman and Director, provided short-term bridge loans to the Company for working capital requirements during the period leading up to the AIM Exchange listing. The above referenced shares of ELCOM'S common stock IN THE PLACING have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States (or to a U.S. person) absent registration or an applicable exemption from the registration requirements. Elcom Product Offerings For detailed information on our PECOS(TM) technology and optional Dynamic Trading functionality, please visit our website at http://www.elcominternational.com/products.htm About Elcom International, Inc. Elcom International, Inc. (OTC:ELCO) (BULLETIN BOARD: ELCO) and (AIM: ELC and ELCS) is a leading international provider of remotely-hosted eProcurement and private eMarketplace solutions. Elcom's innovative remotely-hosted technology establishes the next standard of value and enables enterprises of all sizes to realize the many benefits of eProcurement without the burden of significant infrastructure investment and ongoing content and system management. PECOS Internet Procurement Manager, Elcom's remotely-hosted eProcurement and eMarketplace enabling platform was the first "live" remotely-hosted eProcurement system in the world. Additional information can be found at http://www.elcominternational.com/ STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT Except for the historical information contained herein, the matters discussed in this press release could 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," "targets," "intends," "anticipates," "plans," 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 client's acceptance and usage of eCommerce software systems, specifically the Company's PECOS eProcurement and eMarketplace systems and demand thereof by public sector organizations in the U.K., the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors, and control of expenses, revenue growth, corporate demand for eProcurement and eMarketplace solutions; (iii) the consequent results of operations given the aforementioned factors; and (iv) the possibility that the Company's revenues may not reach the level necessary to support positive cash flow and if so, the Company might need to raise additional working capital to fund operations in the future; and (v) the availability and terms of any such funding to the Company, if available, and other risks detailed from time to time in the Company's Annual Report on Form 10-K filed on March 29, 2004 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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