Scotland's largest Local Authority to Use PECOS to Automate Procurement NORWOOD, Mass., Jan. 17 /PRNewswire-FirstCall/ -- Elcom International, Inc. ("Elcom" or the "Company") (OTC:ELCO) (BULLETIN BOARD: ELCO) and (AIM: ELC and ELCS), a leading international provider of remotely-hosted eProcurement and eMarketplace solutions, today announced that Glasgow City Council, Scotland's largest Local Authority, has joined eProcurement Scotl@nd's ("ePS") eProcurement programme. Glasgow City Council is the largest of the 32 local authorities in Scotland responsible for the delivery of all local authority services to the city and its 600,000 residents. With approximately 35,000 employees and a gross annual budget of over 2.4 billion pounds sterling, this makes Glasgow City Council the largest single organisation to join eProcurement Scotl@nd. Steven Purcell, Glasgow City Council Leader and the chair of the Council's Efficient Government Development Group said: "Glasgow City Council is delighted to have joined ePS. I am confident that involvement in the service will be a key strand of the Council's efficient government programme. Furthermore joining the service again illustrates Glasgow City Council's willingness to collaborate and work in partnership with the Scottish Executive and other public sector bodies on efficient government projects." It is anticipated that the implementation programme will connect eProcurement Scotl@nd to the Council's existing systems to provide leading edge, on-line integrated procurement, tendering and financial processing. The programme team responsible for implementing eProcurement Scotl@nd in Glasgow is a model of collaboration and includes members from Glasgow City Council, the Scottish Executive, the Authorities Buying Consortium, Capgemini UK plc, Elcom and Serco. The first phase of the eProcurement Scotl@nd service implementation is already well underway with an anticipated 'go live' date of early 2006. Elcom Product Offerings For detailed information on Elcom's PECOS(TM) technology and optional Dynamic Trading functionality, please visit Elcom's website at: http://www.elcominternational.com/products.htm Additional Information about eProcurement Scotl@nd eProcurement Scotl@nd is a round-the-clock hosted e-procurement service which uses a common technical platform for use by the public sector in Scotland. Capgemini UK plc, the ePS service providers, host the service and, together with a central programme team, are tasked with managing the roll out of the service across the public sector in Scotland. It uses Elcom's e- procurement software 'PECOS' and Dynamic Trade Centre for eTender and eAuctions. About Glasgow City Council Glasgow City Council web site can be found at http://www.glasgow.gov.uk/. About the Capgemini Group Capgemini, one of the world's foremost providers of Consulting, Technology, and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment of mutual success and the achievement of tangible value, Capgemini helps businesses implement growth strategies, leverage technology and thrive through the power of collaboration. Capgemini employs approximately 60,000 people worldwide and reported 2004 global revenues of 6.3 billion euros. More information about individual service lines, offices and research is available at http://www.capgemini.com/. About Elcom International, Inc. Elcom International, Inc. (OTC:ELCO) (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 procurement processes and purchase most or all of their goods and services in a 'private' eMarketplace system. PECOS, Elcom's remotely-hosted flagship solution, enables enterprises of all sizes to achieve the many benefits of eProcurement and eMarketplace functionality, with the system hosted by Elcom at its own data center, eliminating the burden and cost of in-house programming, IT infrastructure and ongoing catalog content and system management. More information is available from Elcom's integrated web site at: 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 possibility that the Company will have to raise additional working capital to fund operations during 2006 and the availability of any such funding to the Company; (ii) its history of ongoing operating losses; (iii) the substantial number of common shares issued in the Company's recent Regulation S issuance and the possible impact on the market for the Company's shares; (iv) the ability of the Company to perform under its contracts with Capgemini UK plc and PA Shared Services Limited ("PASSL"), a member of the PA Consulting group of companies; (v) the overall marketplace and clients' acceptance and usage of eCommerce software systems, eProcurement and eMarketplace solutions including demand therefor by both Scottish and U.K. public entities; (vi) the costs of building the Zanzibar eMarketplace system versus the revenues derived therefrom; (vii) the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors; (viii) control of expenses; (ix) the consequent results of operations given the aforementioned factors; and (x) other risks detailed from time to time in the Company's Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB 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: First Call Analyst: FCMN Contact: DATASOURCE: Elcom International, Inc. CONTACT: Investor Relations at Elcom International, Inc., Web site: http://www.elcominternational.com/ http://www.capgemini.com/ http://www.glasgow.gov.uk/

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