Nine Additional Organizations Have Joined eProcurement Scotl@nd Additions Bring Total Number Of Scottish Executive Organizations To Nineteen (19) NORWOOD, Mass., Oct 8 /PRNewswire-FirstCall/ -- Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:andOTC:ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , today announced that, from January 2004 to date, nine additional organizations have joined the eProcurement Scotl@nd program and will use Elcom's PECOS eMarketplace and eProcurement system to automate many of their procurement activities. This brings the total number of organizations joining the program to nineteen. The nine organizations which have joined the eProcurement Scotl@nd program are: Argyll and Bute Council -- http://www.argyll-bute.gov.uk/ North Ayrshire Council -- http://www.north-ayrshire.gov.uk/ Highland and Islands Enterprise -- http://www.hie.co.uk/ NHS Grampian -- http://www.nhsgrampian.org/ NHS Argyll and Clyde -- http://www.show.scot.nhs.uk/achb NHS Forth Valley -- http://www.show.scot.nhs.uk/nhsfv NHS Ayrshire and Arran -- http://www.nhsayrshireandarran.com/ NHS Lothian -- http://www.nhslothian.scot.nhs.uk/ NHS Lanarkshire -- http://www.nhslanarkshire.co.uk/ These additions represent a significant acceleration in the uptake of eProcurement Scotl@nd during 2004 as more public sector organizations recognise the benefits of eProcurement via an eMarketplace environment with eProcurement Scotl@nd. Fourteen organizations have already 'gone live' and are transacting within eProcurement Scotl@nd. They include 4000 users connected to thousands of suppliers to the Scottish Public Sector, including 30 'advanced' direct electronic connections to suppliers. Robert J. Crowell, Elcom International's Chairman and CEO, said, "We are pleased to see the increasing interest in eProcurement Scotl@nd translating into activity. With 19 organizations having joined and 14 of those organizations active, the eProcurement Scotl@nd has certainly reached the point whereby it represents, in our opinion, the most efficient and best- recognized eMarketplace and eProcurement system in the world. Indeed, as additional National Health Service Trust (hospitals) join eProcurement Scotl@nd, I would expect the NHS to realize significant savings through product collaboration and process efficiencies. Elcom looks forward to assisting all of the public sector organizations in Scotland to make their participation in eProcurement Scotl@nd's eMarketplace as successful as possible." The nine new organizations form part of the contract awarded by the Scottish Executive to Capgemini UK in November 2001 for the provision of an eProcurement service capable of being used by any public sector body in Scotland. Under the terms of the contract, Elcom provides the hosted eProcurement platform and Capgemini UK provides project management, systems integration and implementation services. About eProcurement Scotl@nd eProcurement Scotl@nd is one of the World's first cross-Government eProcurement initiatives. Its scope includes all Health Trusts, Local Authorities and Central Government departments and Agencies with a combined annual spend of over 20bn pounds sterling. Launched in 2002, 19 public sector organizations have joined the program to date with additional organizations expected to join by the end of the year. Each organization is provided with several software components, including Elcom's PECOS and Dynamic Trade Centre products. The program is managed by service provider Capgemini under a 7-year contract with the Scottish Executive. More information can be found at http://www.eprocurementscotland.com/ Company Product Offerings For detailed information on our PECOSTM eMarketplace and eProcurement and optional Dynamic Trading solutions, please visit our website at http://www.elcominternational.com/products.htm 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., an international B2B Commerce Service Provider offering affordable solutions for buyers, sellers and commerce communities to 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/ Information Associated with Fairness Disclosure Regulation (Regulation FD) In order to better inform our investors of the progress of the increasing use of Elcom's PECOS eMarketplace and eProcurement system in eProcurement Scotl@nd, the Company has changed the methodology by which it announces organizations joining the programme. Elcom will issue a press release each time an organization joins the eProcurement Scotl@nd program. A follow-on press release will then be issued when that particular organization becomes operational, typically expected within 60 to 120 days after joining. Therefore, this particular press release references nine organizations which have joined during 2004 to date. Investors should take note that these nine organizations did not join all at once, but via the schedule listed below. Name Joining Date Argyll and Bute Council January 20, 2004 North Ayrshire Council February 3, 2004 NHS Forth Valley February 12, 2004 NHS Lanarkshire April 15, 2004 NHS Argyll and Clyde May 17, 2004 NHS Grampian May 19, 2004 Highland and Islands Enterprise August 10, 2004 NHS Ayrshire and Arran August 23, 2004 NHS Lothian September 24, 2004 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 therefor by public sector organizations in the U.K., both under the Company's contract with Capgemini plc (U.K.) associated with the Scottish Executive and by municipalities in England, 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 and corporate demand for eProcurement and eMarketplace solutions; (iii) the consequent results of operations given the aforementioned factors; (iv) the possibility that the Company's revenues may not reach the level necessary to support positive cash flow and if so, the Company's need to raise additional working capital to fund operations in the future; (v) the availability and terms of any such funding to the Company, if available, and (vi) other risks detailed in the Company's Annual Report on Form 10-K, as amended, filed on May 10, 2004, in its Forms 10-QSB for the first and second quarters of 2004, and from time to time 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. Company Contact: Investor Relations e-mail: DATASOURCE: Elcom International, Inc. CONTACT: Investor Relations of Elcom International, e-mail: Web site: http://www.elcom.com/

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