Elcom International reports first quarter record earnings and revenues.

NORWOOD, Mass.--(BUSINESS WIRE)--May 13, 1996--Elcom International Inc. (NASDAQ:ELCO), a leading electronic commerce company, began 1996 with record earnings and revenues in the first quarter.

Quarterly Highlights:

o Net sales totaled $141 million, up from $43 million in the first quarter of 1995, a 228 percent growth rate.

o Second consecutive quarterly profit since IPO -- record net

income of $1,124,000, or $.04 per share vs. a net loss of

$(.04) per share in the first quarter of 1995.

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                       Financial Summary Table
               (in thousands, except per share amounts)
                                   Quarter Ended March 31,
                                        (unaudited)
                                   1996                1995

Net Sales                      $141,416             $42,929
Gross Profit                   $ 16,345             $ 5,731
Gross Profit Percentage            11.6%               13.3%
Operating Profit (Loss)        $  2,240               $(305)
Net Income (Loss)              $  1,124               $(580)
Net Income (Loss) Per Share        $.04               $(.04)
Weighted Average Shares          29,142              15,781

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For the first (fiscal and calendar) quarter of 1996 ended March 31, 1996, net sales totaled $141 million, up 228 percent from $43 million in the first quarter of 1995. Net income increased to $1,124,000 compared to $580,000 loss in the comparable 1995 quarter. Earnings per share for the first quarter of 1996 increased to $.04 compared with a loss of $(.04) per share in the first quarter of 1995. More detailed financial information will be released in the company's Form 10-Q which will be filed with the SEC in the next few days.

The reported results include the company's recently completed acquisition of AMA (U.K.) Limited, a PC remarketer in the United Kingdom. This acquisition, which was consummated on Feb. 29, 1996, is being accounted for as a pooling of interests, and accordingly, the 1995 and 1996 reported information includes the results of AMA (U.K.) Limited which have been combined with the company's financial results for the periods presented.

Results for the 1995 quarter also reflect the acquisition of Computerware in the United States for the two months following its February 1995 acquisition by the company, while the 1996 results include both Computerware and LANTEC Information Services, a PC remarketer in the United Kingdom which was acquired in June 1995. Exclusive of AMA (U.K.) Limited and these other acquisition(s), the company's net sales for the first quarter of 1996 amounted to $61 million, a 259 percent increase over the $17 million recorded in he comparable quarter last year, reflecting the success of the company's enlarged sales force and acceptance of Elcom International's proprietary PECOS technology, which forms the backbone of the company's electronic commerce capabilities.

Robert J. Crowell, Elcom International's chairman and CEO stated, "Our record first quarter results reflect the continued success and acceptance of our PECOS (Personal Electronic Catalog and Ordering System) technology in Catalink Direct, our wholly owned PC remarketer operating unit which uses our proprietary PECOS technology to market and sell PC products. The first quarter results are also indicative of the continued growth in Elcom Systems, our wholly owned technology subsidiary which licenses PECOS to other companies. With six software licenses in place, including ShopLink, a recently formed joint venture (approximately 40 percent of which is owned by the company) which will provide electronic commerce capabilities to consumers in the home consumable shopping category, Elcom Systems is emerging as a leading provider of transaction-based, electronic commerce solutions."

Crowell added that, "Our PECOS technology became Internet enabled in April 1996, allowing our customers to use the Internet as a conduit to communicate with the company. First quarter net sales conducted through PECOS exceeded $61 million, which the company, by actually generating substantial revenues via interactive PC-based electronic commerce, believes qualifies its Catalink Direct subsidiary as one of the world's leading electronic commerce companies."

The company develops and licenses proprietary client/server transaction-based software systems which enable the conduct of PC-based interactive electronic commerce on private and/or Internet Protocol networks and, through its Catalink Direct subsidiary, uses its PECOS technology to market PC products electronically. Catalink Direct operates 17 field sales and support offices in the United States and five offices in the United Kingdom. The company's proprietary PECOS technology is licensed by Elcom Systems Inc., its wholly owned technology subsidiary, to companies in various industries which allows them to create interactive electronic catalog and ordering systems which facilitate the conduct of electronic commerce with their customers.

With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, technological and/or other factors, which are outside the control of the company.

CONTACT: Elcom International

Eric Poley, 617/440-3333 Ext. 4156

Internet: [e-mail]