Elcom International reports record fiscal year revenues and income.

NORWOOD, Mass.--(BUSINESS WIRE)--Feb. 26, 1997-- Elcom International, Inc. (NASDAQ: ELCO), a leading electronic commerce company ended fiscal year 1996 with record revenues and profits.

Annual Highlights:

-- Net sales increased 99% to $620 million, from $311 million in 1995. -- Net income increased to $5.6 million, or $.19 per share compared to a loss of $(.05) per share in 1995.

Quarterly Highlights:

-- Net sales totaled $175.5 million, up 62% from $108.2 million in the 1995 quarter. -- Fifth consecutive quarterly profit -- net income of $1.99 million or $.07 per share vs. $.01 per share in the 1995 quarter.

                   Financial Summary Table
           (in thousands, except per share amounts)

                              Fiscal Quarter
                             Ended December 31,       Fiscal Year
                                (unaudited)        Ended December 31,
                             1996       1995        1996      1995

Net Sales                $175,543   $108,160    $620,115  $311,423
Gross Profit              $19,322    $13,271     $70,039   $39,382
Gross Profit Percentage      11.0%      12.3%       11.3%     12.6%
Net Income (Loss)          $1,989       $350      $5,575     $(904)
Net Income (Loss) Per Share  $.07       $.01        $.19     $(.05)
Weighted Average Shares
 Outstanding               29,950     25,386      29,811    20,001

For the full fiscal year, net sales increased 99% to $620 million, compared to 1995 net sales of $311 million. The Company reported net income of $5.6 million in 1996 versus a net loss of $(904,000) in 1995. Earnings per share increased to $.19 in 1996 from a loss of $(.05) in 1995. Full details of the financial results will be included in the Company's Form 10-K which is expected to be filed with the SEC in the middle of March.

Net sales for the quarter ended December 31, 1996, totaled $175.5 million, up 62% from $108.2 million in the fourth quarter of 1995 and net income amounted to $1.99 million in the fourth quarter of 1996 compared to net income of $350,000 in the comparable 1995 quarter. Earnings per share for the 1996 fourth quarter were $.07 compared with net income of $.01 per share in the fourth quarter of 1995.

Robert J. Crowell, Elcom International's Chairman and CEO stated, "Our record fourth quarter results reflect the continued growth of Catalink Direct, our wholly-owned PC remarketer operating unit which uses our proprietary PECOS (Personal Electronic Catalog and Ordering System) technology to facilitate electronic commerce with its customers. The Company's higher than expected revenues in the fourth quarter were due primarily to strong sales in the corporate sector in the U.S. and the U.K. marketplaces."

"Elcom Systems, our technology subsidiary, performed well in the fourth quarter with several PECOS licenses and upgrades signed. With over $575 million in fourth quarter annualized revenues now being transacted through our PECOS System, we believe that Elcom Systems' PECOS technology now supports more revenue generation than any other electronic commerce system in the world," Mr. Crowell added.

Elcom International, Inc., through two wholly-owned subsidiaries, develops, licenses, and uses client/server transaction-based software systems which enable the conduct of PC- based interactive electronic commerce on private and/or Internet Protocol networks. Elcom Systems, the Company's technology subsidiary, licenses PECOS to companies in various industries which allows them to create interactive enterprise-level electronic catalog and ordering systems to facilitate the conduct of electronic commerce with their customers. Catalink Direct, the Company's other subsidiary, uses the Company's PECOS technology to market and sell PC products and operates 17 field sales and support offices in the United States and 7 in the United Kingdom.

Statement Under the Private Securities Litigation Reform Act

With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties which might cause the results of such forward-looking statements to differ materially from those anticipated. These include the acceptance and usage of electronic commerce software systems, control of expenses, growth, overall business conditions, pricing, corporate demand for PC products, implementation of internal business and information systems, risks associated with acquisitions of companies, the results of pending litigation and the other risks detailed from time to time in the Company's SEC reports, including the Company's prospectus included as part of the S-1 Registration Statement declared effective on December 19, 1995 under the Securities Act of 1933.

CONTACT: Elcom

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Homepage. www.elcomintemational.com

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