Global Procurement Group Ltd. Selects Elcom's PECOS System to Provide Global Automated Procurement Exchange Global Procurement Group Ltd. Targets Small to Medium Enterprises with eProcurement Management Solution NORWOOD, Mass., Jan. 13 /PRNewswire-FirstCall/ -- elcom, inc., the wholly- owned B2B eCommerce solutions subsidiary of Elcom International, Inc. (OTC Bulletin Board: ELCO and AIM: ELC and ELCS), today announced that Global Procurement Group Ltd., the wholly-owned subsidiary of Global Procurement Group Inc., has selected PECOS, Elcom's remotely-hosted eProcurement and eMarketplace system, to provide a global sourcing platform to power Global Procurement Group's Automated Procurement Exchange (g-APEx(TM)). Elcom will provide Global Procurement Group, Ltd. (GPG) with a hosted solution that includes eProcurement, eMarketplace, and access to Elcom's Dynamic Trade Centre, which will enable GPG and its affiliates to automate their clients' procurement process from sourcing through financial settlement. GPG plans to initially deploy its Automated Procurement Exchange in the United Kingdom and subsequently in the United States, France and Germany, to service the procurement needs of Small to Medium Enterprises (SMEs) in those markets. George W. Edwards, GPG's Group Chief Executive Officer, said "GPG offers a unique holistic automated procurement management methodology which systematically optimizes the needs, economics and efficiencies of organizations with a turnover of up to #100 million (SMEs) as well as suppliers. SMEs using g-APEx will benefit from net credit savings which will positively impact an SME's bottom line profits, as well as producing cost savings and increasing efficiencies in purchasing and order processing." Mr. Edwards also stated, "GPG will market g-APEx(TM) the in the UK through licensed consultancy practices (Affiliates) who wish to add value to their existing SME clients. We are pleased to have Elcom provide the core eProcurement and eMarketplace technology and hosting services that will power g-APExTM. Our g-APExTM system will enable our supplier Affiliates to combine best of breed technology with the procurement best practices required to deliver real savings to both buyers and suppliers." Vincent A. Hillsdon, Global Procurement Group Inc.'s Chairman said, "We are delighted to be working with Elcom International, Inc. By using their robust and proven eProcurement technology, combined with our supplier agreements, we can deliver the procurement power of size and scale to SMEs, allowing them to achieve the buying power of large corporations. This is a true synergistic situation for Suppliers and Buyers with demonstrable savings that will generate incremental savings and add to the profitability for SMEs." Robert J. Crowell, Elcom International, Inc.'s Chairman and CEO, said, "We are pleased to work with GPG and believe its model to provide SMEs with a PECOS based Automated Procurement Exchange is a concept whose time has come. Since our inception in 1992, Elcom has focused on providing a best of breed eProcurement system, and now with eMarketplace and other capabilities, we see an excellent fit for GPG as they begin rolling out their g-APExTM system for SMEs." This agreement is contingent upon the Company receiving additional funding by the end of the first quarter of 2005. 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 About Global Procurement Group, Ltd. Global Procurement Group Ltd., a wholly owned subsidiary of Global Procurement Group Inc. is an innovative company which specializes in creating and perfecting methods and systems for the management of non-core procurement of goods and services for Small to Medium Enterprises (SMEs) -- satisfying the continuous need for cost management, improved supply planning and greater profitability to all parties to the process. 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. Company Contact: Investor Relations e-mail: DATASOURCE: elcom, inc. CONTACT: Investor Relations of Elcom International, Web site: http://www.elcom.com/ http://www.elcominternational.com/products.htm

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