OGCbuying.solutions Has Announced its Intent to Enter into a Framework Agreement with PA Shared Services Ltd. Elcom to Provide its PECOS eMarketplace System for the U.K.'s Zanzibar eMarketplace NORWOOD, Mass., June 15 /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 has been informed that OGCbuying.solutions has announced its intent to award the Zanzibar service contract to PA Shared Services Ltd. PA Shared Services Ltd. ("PA") is a wholly owned subsidiary of PA Consulting Group to manage the consortium that will create and operate the Zanzibar services. PA is the primary contractor, with Elcom providing the eProcurement, eMarketplace and catalogue content components of the Zanzibar eMarketplace system to PA along with several other consortium members. This intent to enter into a Framework Agreement is subject to the newly promulgated 10-calendar day Alcatel waiting period. The signing of a back-to-back agreement between Elcom and PA is subject to Elcom's funding as discussed herein. Robert J. Crowell, Elcom International, Inc.'s Chairman and CEO said, "The Zanzibar service is a very sophisticated and very large scale eMarketplace available to all the Public Sector Bodies in the U.K. We are extremely pleased and look forward to being able to work with PA in delivering this strategic solution. As UK public sector organizations joining Zanzibar will not have to go out to tender in order to implement the system, we expect Zanzibar to receive a very positive reception and believe it will evolve into one of the largest eMarketplace in the world." http://www.ogcbuyingsolutions.gov.uk/zanzibar/zanzibar_announcement.asp Zanzibar is an eProcurement system that offers 3 features: * an electronic marketplace containing details of Public Sector supplier contracts * a Purchase to Pay solution * a pan-UK Public Sector data warehouse Zanzibar will provide a 'Procure to Pay', eMarketplace operated by PA, 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 documented via an OGCbuying.solutions Framework Agreement and run as a Managed Service on behalf of U.K. Government departments and agencies, which are expected to join as individual agencies. The signing of a back-to-back contract with PA is contingent upon Elcom securing strategic funding, which cannot be consummated until after the Company's Annual General Meeting ("AGM") on 29 June 2005. The Company intends to raise funding to improve its balance sheet and increase its working capital via the issuance of shares to be listed on the AIM exchange in London. One of the items to be voted on by the Company's shareholders is to authorize additional common shares for the Company to enable Elcom to have enough shares to issue to the (potential) purchasers of its shares to be listed on the AIM. The Company is seeking, and must also consummate tactical funding during June, prior to the AGM, in order to continue to operate. Accordingly, there can be no assurance that a back-to-back agreement with PA will be signed or that the Company's issuance of shares will be consummated. About OGCbuying.solutions OGCbuying.solutions is an Executive Agency of the U.K. Government's Office of Government Commerce, in HM Treasury. 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 ("Elcom"), an international B2B Commerce Service Provider offering affordable solutions for buyers, sellers and commerce communities to automate many or all of their purchasing processes and 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/ 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 necessity to obtain additional tactical financing or customer advance payments to continue to operate during June 2005 and the availability of any such funding to the Company, particularly in light of the Company's $67,000 balance of cash and cash equivalents at March 31, 2005 and its history of ongoing operating losses; (ii) the Company's need to raise significant strategic capital, most likely via the offer and sale of common stock to be listed on the AIM upon authorization of additional shares of common stock at the Company's AGM on June 29, 2005, (iii) the overall marketplace and client's acceptance and usage of eCommerce software systems, eProcurement and eMarketplace solutions 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, and control of expenses, revenue growth; (iv) the consequent results of operations given the aforementioned factors; and (v) and other risks detailed from time to time in the Company's Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB, including the 10-QSB filed on May 9, 2005 and in its other SEC reports and statements. In the event the Company is unable to raise additional tactical working capital from investors (or by the sale of assets or by other means) during June, and/or additional strategic funding through the possible sale of Common Stock in July, the Company would be forced to curtail or cease operations and/or seek protection under U.S. bankruptcy laws. 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: Tom Barton of Government Services Group, +44 20 7312 4636, ; or Investor Relations of Elcom International, Inc., Web site: http://www.elcom.com/

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