Oakland Unified School District Uses Elcom to Power its Educational eMarketplace Oakland Unified School District eMarketplace System goes live at no cost to Oakland California Schools NORWOOD, Mass., April 7 /PRNewswire-FirstCall/ -- elcom, inc., the wholly- owned B2B eCommerce solutions subsidiary of Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:andOTC:ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , today announced that the Oakland Unified School District ("OUSD") has selected and is utilizing PECOS, Elcom's remotely-hosted eProcurement and eMarketplace system, to power its buyer-side educational products eMarketplace, for its 108 schools in the Oakland Unified School District. The OUSD eMarketplace System went live on March 31 and includes suppliers such as Dell, School Specialties and Campus Security, with additional suppliers being in discussions to participate. Elcom is providing OUSD with a hosted eMarketplace solution at no charge to OUSD that includes its PECOS Internet Procurement Manager configured as an eMarketplace, which will automate the procurement process and the purchase of goods and services throughout all of Oakland's schools. An agent fee, based on revenues through the system, is paid to Elcom by participating suppliers. Oswaldo A. Galarza, OUSD's Information Technology Officer, said, "The selection of Elcom to provide our school district with an eMarketplace demonstrates that Elcom's technology and solutions are proven and robust and reflect the direction that Oakland is pursuing in leveraging technology to improve efficiencies in administrative operations. The Elcom PECOS eMarketplace system will enable schools and departments to take advantage of the flexibility of the Web for procurement needs while maintaining the District Business Rules and posting appropriate information into its internal financial systems, at no cost to Oakland." Robert J. Crowell, Elcom International, Inc.'s Chairman and CEO, said, "We are pleased to have Oakland Unified School District as our first educational eMarketplace client using the multi-tenant implementation of PECOS as their eMarketplace solution. Public schools across the country are challenged with providing quality education in the face of severe budget cuts and we are gratified to be able to provide a system, at no cost to OUSD, that will improve purchasing across all the schools in the system resulting in lower product and process costs. Anticipated administrative improvements associated with implementation of an eMarketplace powered by our PECOS System will assist OUSD in its mission to do more with less." 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 Oakland Unified School District Oakland Unified School District is the sixth largest in the state of California, with about 52,000 students, 3,200 teachers, and an annual budget of several hundred million dollars. OUSD is the second largest employer in Oakland. OUSD is called a "unified" district because it educates students from kindergarten straight through to 12th grade. In order to serve all the students, it offers a variety of schools, ranging from kindergarten through fifth grade elementary schools, to middle school and both large and small high schools. 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 and is in the process of arranging a common stock offering under its AIM (U.K.) listing. The bridge loans are intended to provide the Company with the necessary funds to operate while the Company continues fundraising discussions. Through March 31, 2005, the Company has received a total of $200,000 of such bridge loans. 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 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 and not be invested in the Company's shares, unless and until the U.K. Government's Zanzibar contract is signed between Elcom and PA Consulting. In addition, even if such a financing arrangement is achieved, it is the Company's belief that the Zanzibar contract will not be signed until at least after the May 5 General Election in the U.K., as previously announced. In the interim, the Company requires additional cash in the near term to fund its current operations until any funds raised through an issuance of shares on the AIM would be available to the Company as described above. The Company is currently in discussions with several parties regarding the raising of additional capital in the near term; 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. The above-described financing program is preliminary and subject to many potential contingencies, including those described above. Further, unless the Company can secure additional financing in April 2005, the Company will be forced to curtail operations and/or seek protection under the bankruptcy laws. There can be no assurance that the Company will be able to successfully consummate either such short-term financing, or the potential longer-term financing described above 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. 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 during April 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 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, as well as the Company's annual report on Form 10-KSB, which it intends to file in early April, 2005, 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, inc. CONTACT: Investor Relations of Elcom International, Inc., Web site: http://www.elcominternational.com/ http://www.elcom.com/

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