ELCS Elcom Itl. Regs

RNS Number:6260L
Elcom International Inc
28 April 2005





Company Contact:

Investor Relations

E-mail:  invrel@elcom.com



Elcom Receives Short-Term Working Capital Funding


Several Major Clients Prepay or Accelerate Payment of Licence and other Fees


NORWOOD, MA, April 28, 2005 - Elcom International, Inc. (OTCBB: ELCO and AIM:
ELC and ELCS), today announced that several of its larger clients have prepaid
or agreed to accelerate the payment of invoices for several months in order to
assist the Company's short-term working capital requirements.  The Company
believes that these prepayments and the acceleration of payments of certain
invoice amounts due will enable the Company to operate, at a minimum, into June
2005, allowing the Company extra time to finalize its long-term funding.


Robert J. Crowell, Elcom's Chairman and CEO, said, "We have always tried to do
our best to keep our customers' satisfaction as high as possible.  Indeed, we
have always believed that our customers and references therefrom, are one of our
greatest assets for the future of Elcom."


Mr. Crowell continued, "Several of our customers have assisted Elcom in its
short-term cash flow requirements enabling Elcom to 'bridge' to its potential
long-term funding.  I can state with all sincerity that nothing is more
gratifying than major customers coming to your aid on their own volition.  I
believe we are now significantly better positioned, given overall circumstances,
to finalize our strategic funding and I would like, on behalf of Elcom, to thank
the clients involved."


The Company is, as previously announced, a member of the consortium headed by PA
Consulting, which is the preferred bidder for the U.K.'s Office of Government
Commerce's Zanzibar eMarketplace project.  The Company believes the agreement
for the Zanzibar project, while delayed several times, will be awarded within
the next 30 to 45 days; however, there can be no assurance of the contract being
awarded or the date thereof.  The earliest the Zanzibar agreement can be signed
is 15 (fifteen) business days after the announcement of the contract award.
This is due to a waiting period commonly referred to as the Alcatel waiting
period.


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 totaling
$200,000 through March 31, 2005.  The Company is in the process of discussing
the potential of a common stock issuance (under Regulation S of the Securities
and Exchange Commission Regulations) under its AIM (U.K.) listing.  The bridge
loans, together with the short-term working capital assistance announced herein,
are intended to provide the Company with the necessary funds to operate while
the Company continues long-term fundraising discussions.  The Company is
currently in discussions with several parties regarding the raising of
additional funds, 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, 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.


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 and amount 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 or escrow and not be
invested in the Company's shares, unless and until the U.K.'s Office of
Government Commerce's Zanzibar agreement is signed between Elcom and PA
Consulting.  Some or all of the funds might be held in abeyance or escrow until
after additional common shares are authorized at the Company's annual
stockholders meeting on June 29, 2005.


It is the Company's current belief that the Zanzibar contract will not be
awarded until mid to late May.  If there is a further significant delay in the
projected contract award of the Zanzibar project, additional short-term funding
will be required during June.  Without such additional funding or further
assistance, such as acceleration of further invoices by a major client, the
Company would likely be forced to curtail operations and seek protection under
bankruptcy laws.


About Elcom International, Inc.


Elcom International, Inc. (OTCBB: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.
www.elcominternational.com


Company Product Offerings


For detailed information on our PECOSTM eMarketplace and eProcurement and
optional Dynamic Trading solutions, please visit our website at

www.elcominternational.com/products.htm


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; (iv) the awarding and/or timing
thereof of the Zanzibar contract to PA Consulting with the Company as
subcontractor thereto; and (v) the requirement for the Company to raise
additional working capital to fund operations in June 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 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 2004 annual report on Form 10-KSB, 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.








                      This information is provided by RNS
            The company news service from the London Stock Exchange

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