Elcom International, Inc., in Collaboration With PA Consulting Group, Has Been Named as Having Preferred Bidder Status for the Office of Government Commerce's (U.K.) eMarketplace System NORWOOD, Mass., Jan. 11 /PRNewswire-FirstCall/ -- Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:andOTC:ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , today announced that the Company is one of the sub-contractors to PA Consulting Group (PA), which the Office of Government Commerce ("OGC") has named as the Preferred Bidder for the creation and deployment of the OGC's Zanzibar eMarketplace for U.K. public sector organizations. PA is the envisaged primary contractor with Preferred Bidder status with Elcom providing the eProcurement and eMarketplace components of the Zanzibar eMarketplace system. Preferred Bidder status means that OGC will negotiate exclusively with PA in respect to a framework agreement targeted to be in place by the end of February. However, Preferred Bidder status is at all times contingent on the successful negotiation of the terms of the framework agreement and the status can be withdrawn by OGC at its absolute discretion. Accordingly there can be no assurance that these negotiations will be successful and a framework agreement consummated. Assuming negotiations are concluded satisfactorily with the OGC, Elcom expects to execute a back-to-back contract with PA for the OGC Zanzibar system directly after the framework agreement is signed. Robert J. Crowell, Elcom International's Chairman and CEO, said, "We are extremely pleased to be the eMarketplace and eProcurement solution provider to the PA consortium that has been selected as Preferred Bidder for the OGC Zanzibar eMarketplace system. This is a very large and sophisticated system which will allow all public sector organizations in England to participate in the OGC sponsored Zanzibar eMarketplace without having to go out to tender. We look forward to working closely with PA and the other members of the consortium to make Zanzibar a system that delivers quantifiable savings and other benefits to all participants and thereby serve the public good in the U.K." Zanzibar will provide a 'Procure to Pay' Marketplace, including an eHub (data warehouse, single point of access to the government marketplace for buyers and suppliers), hosted common and individual catalogues and punch out to catalogues as well as non-catalogue transactions. Zanzibar will be an OGCbuying.solutions Framework Agreement and run as a Managed Service on behalf of Government Departments and Agencies, which are expected to join as individual agencies. About the Office of Government Commerce OGCbuying.solutions is an Executive Agency of the U.K. Government's Office of Government Commerce, which is part of the Treasury ministry. Our role is to deliver value for money gains for central civil government and the wider public sector through our dedicated, professional procurement service. We provide our customers with a full range of products and services designed to encourage effective procurement, achieve measurable cost savings and improve the efficiency of the purchasing function throughout the public sector. Additional Information can be found at http://www.ogcbuyingsolutions.gov.uk/ About PA Consulting Group PA Consulting Group is a leading management, systems and technology consulting firm. Operating worldwide in more than 35 countries, PA draws on the knowledge and experience of 3,000 people, whose skills span the initial generation of ideas, insights and solutions all the way through to detailed implementation. PA focuses on creating benefits for clients rather than merely proposing them. Our work is founded on powerful insights into our clients' issues, and in the private sector in particular, on the need to deliver superior shareholder returns. We help accelerate business growth by developing innovative products for our clients and by the application of emerging technology. We deliver major transformation programs, mobilize human resources, and manage complex IT and technically-challenging programs. PA's results-focused approach is founded on a unique commitment to excellence, value and independence. Additional information can be found at http://www.paconsulting.com/ Contact at PA: Tom Barton Government Services Group +44 20 7312 4636 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/ 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; and (iv) the requirement for the Company to raise additional working capital to fund operations no later than the first quarter of 2005 and the availability and terms of any such funding to the Company. Without any such funding, the Company believes it may be forced to curtail operations, and if no alternative to financing, such as a merger or acquisition is consummated, the Company may have no option but to seek protection under bankruptcy laws. Other risks are detailed from time to time in the Company's 2003 Annual Report on Form 10-K, as amended, its Quarterly Reports on Form 10-QSB for the quarterly periods ended March 31, June 30, and September 30, 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. AT THE COMPANY: Investor Relations E-mail: DATASOURCE: Elcom International, Inc. CONTACT: Investor Relations of Elcom International, ; or Tom Barton of Government Services Group, +44 20 7312 4636, Web site: http://www.elcominternational.com/ http://www.paconsulting.com/ http://www.ogcbuyingsolutions.gov.uk/

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