Elcom Announces New eMarketplace Strategic Initiative Company Partners with Ingram Micro, Inc. and Office Depot, Inc. to Offer eMarketplace to Commercial Clients in the U.S. NORWOOD, Mass., Aug. 12 /PRNewswire-FirstCall/ -- Elcom International, Inc. (OTC:ELCOOTC:andOTC:AIM:OTC:ELCOTC:andOTC:ELCS) (BULLETIN BOARD: ELCO and AIM: ELC and ELCS) , today announced the commercial availability of PECOS Business Procurement Manager ("PECOS.BPM"). PECOS.BPM is Elcom's robust and remotely-hosted eProcurement system, configured as an eMarketplace for commercial and corporate customers. PECOS.BPM is a modified version of PECOS, Elcom's leading eProcurement and eMarketplaces system which is in use by over 100 organizations including the Government of Scotland, CBS/Viacom, Tennessee Valley Authority, and many others. Elcom's PECOS.BPM offers hundreds of thousands of products from Office Depot, Inc. (NYSE:ODP), one of the world's largest resellers of office products, and Ingram Micro, Inc., the largest distributor of IT products in the world, both of which are strategic supplier partners of Elcom in this initiative. PECOS.BPM will offer Elcom's prospective clients all the benefits of a robust eProcurement system in a 'save as you spend', low-cost model. Businesses and other commercial organizations, all of which purchase IT and office products frequently, will be able to make immediate use of PECOS.BPM, including requisitioning, approval routing, electronic invoicing, robust reporting, and many other features and benefits. PECOS.BPM clients who purchase their commodity-type IT and office products using the system will receive PECOS.BPM at no charge. The Company will receive an agent fee on revenues which pass through the system. Robert J. Crowell, Elcom's Chairman and CEO, said, "We are very excited about the prospects of PECOS.BPM. We have considerable experience in the eMarketplace area, especially for IT products, from prior to the 9/11 period, and that knowledge has enabled us to quickly rebuild and indeed expand, our new PECOS Business Procurement Manager offering to potential commercial clients." Mr. Crowell continued, "We intend, assuming a client's permission, to announce clients as they come on board, so I expect our investors will be able to follow the anticipated success of this initiative. Our eProcurement technology is proven and robust and we believe offering PECOS.BPM at no charge to commercial customers, represents a value-add proposition that is compelling to say the least. We look forward to introducing PECOS.BPM to the 'Fortune 100,000' companies across the U.S." "We are pleased to be recognized as a strategic go-to-market partner in Elcom's Business Procurement Manager initiative," says Peter Dimarco, vice president of VAR Sales, Ingram Micro U.S. "By teaming with Ingram Micro to offer PECOS.BPM to commercial customers, Elcom is dramatically increasing its sales potential and making it easier for customers to do business with them over the Internet." "Office Depot views the Internet as a strategic tool in B2B procurement. As such, we believe Elcom's PECOS will open new doors for the sale of our products and new services to our customers," added Monica Luechtefeld, Executive Vice President of Global E-Commerce for Office Depot. John Halnen, Elcom's President and Chief Operating Officer, commented, "Both Ingram Micro and Office Depot are strategic partners of Elcom and leaders and visionaries in their respective areas of supply. I look forward to working closely with both companies to maximize the benefits of having their products in our PECOS.BPM commercial eMarketplace." Elcom expects to begin active marketing in September. About Ingram Micro, Inc. Ingram Micro Inc. (NYSE:IM) is the world's largest technology distributor and a leading technology sales, marketing and logistics company. As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services and product aggregation and distribution. Since its beginnings in 1979, Ingram Micro has connected technology solution providers with vendors worldwide, identifying markets and technologies that shape the IT industry. Today, Ingram Micro remains at the forefront of the global technology marketplace, bringing the latest products and services to market and finding new ways to bring value to our customers. The company offers a broad array of solutions and services to nearly 165,000 resellers by distributing and marketing hundreds of thousands of IT products worldwide from nearly 1,400 suppliers. Through Ingram Micro Logistics, the company provides customizable services for order management and fulfillment, contract manufacturing, contract warehousing, product procurement, product pack out and cartonization, reverse logistics, transportation management, customer care, credit and collection management services, and other value chain services. Ingram Micro serves 100 countries and is the only global IT distributor with operations in Asia. Additional information can be found at http://www.ingrammicro.com/ About Office Depot, Inc. With annual sales of more than $12 billion, no one sells more office supplies to more customers in more countries than Office Depot. Founded in 1986 and headquartered in Delray Beach, Florida, the company conducts business in 22 countries and employs nearly 50,000 people worldwide. Office Depot is an industry leader in every distribution channel -- from retail stores and contract delivery to catalogs and e-commerce. The company is the world's number three online retailer -- on target to generate $2.6B in sales for FY'03. In North America, Office Depot has more than 900 retail stores in addition to a national business-to-business delivery network supported by 22 delivery centers, more than 60 local sales offices and 13 regional call centers. The company's common stock is traded on the New York Stock Exchange under the symbol ODP and is included in the S&P 500 Index. Additional press information can be found at: http://mediarelations.officedepot.com/ 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/ Links to Sites of Interest: http://www.eprocurementscotland.com/ http://www.tva.com/ http://www.egovmonitor.com/links?129a 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 history of ongoing operating losses; (ii) the overall marketplace and client's acceptance and usage of eCommerce software systems, specifically the Company's PECOS eProcurement and eMarketplace systems and demand therefor by public sector organizations in the U.K., both under the Company's contract with Capgemini plc (U.K.) associated with the Scottish Executive and by municipalities in England, 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 and corporate demand for eProcurement and eMarketplace solutions; (iii) the consequent results of operations given the aforementioned factors; (iv) the possibility that the Company's revenues may not reach the level necessary to support positive cash flow and if so, the Company's need to raise additional working capital to fund operations in the future; (v) the availability and terms of any such funding to the Company, if available, and (vi) other risks detailed in the Company's Annual Report on Form 10-K, as amended, filed on May 10, 2004, in its Forms 10-QSB for the first and second quarters of 2004, and from time to time 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 International, Inc. CONTACT: Investor Relations of Elcom International, Inc., Web site: http://mediarelations.officedepot.com/ http://www.ingrammicro.com/ http://www.elcominternational.com/

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