HOWELL TOWNSHIP SELECTS ELCOM'S EPROCUREMENT SOLUTION.

The Howell Township Board of Education, has selected PECOS Internet Procurement Manager ("PECOS.ipm") to automate the purchasing of their IT products from Elcom Services Group, Inc., the company's wholly-owned IT product and services solutions subsidiary. The Howell Township Board of Education will use PECOS.ipm to help centralize its purchasing function for its ten school systems using Elcom Services Group, Inc. as its primary supplier for IT products.

Joseph Dunne, information technology supervisor for the Howell Township Board of Education, said, "We were looking for a feature rich procurement solution that could support our procurement best practices initiative and Elcom 's PECOS Internet Procurement Manager certainly fit our objectives. We are looking forward to using PECOS Internet procurement Manager to help us improve our purchase order cycle time and through its robust reporting module, help us capture product detail."

John Halnen, Elcom International, Inc.'s president and COO, added, "The Howell Board of Education is another example of the execution on our recent strategy shift to effectively leverage our eProcurement technology with our outsourced leveraged procurement service. The benefits of using our eProcurement system to purchase IT products are readily obvious and the offering is quite compelling. Our clients, especially schools and other organizations with fixed budgets, can use a system such as PECOS Internet Procurement Manager to better manage their procurement practices and spending."

Company Product Offerings

PECOS includes three functional modules and optional Dynamic Trading functionality:

PECOS Internet Procurement Manager ("PECOS.ipm") is the eProcurement configuration of PECOS that automates the procurement process from supplier product content through financial settlement. PECOS.ipm supports the procurement of products comprising the major categories of spending including front office and industrial MRO, capital equipment, services and direct materials.

Additional functionality of PECOS.ipm includes access to external eMarketplaces or supplier Web sites (punch-out), multi-organizational "tiered" capabilities, flexible approval routing, electronic forms routing, receiving, financial settlement using corporate purchasing cards, Excel spreadsheet routing based on label (cell) amounts and electronic invoicing or evaluated receipt settlement. PECOS.ipm provides a comprehensive self-service administrative environment enabling clients with the ability to control procurement processes including approval routing, access rights to functionality and catalogs, and business rules and policies. Importantly, PECOS.ipm can function independently from a client's back-end computer system and interfaces to legacy or ERP systems using various data feeds. A web-based training module is available for companies to train any number of users via the Internet.

PECOS Internet Commerce Manager ("PECOS.icm") is the eDistribution configuration version of PECOS that automates the online selling process from product information through financial settlement. PECOS.icm supports the sales of MRO such as IT products and services and includes functionality such as electronic catalogs, shopping cart and shopping cart transfer, access to real time price and availability, product configuration and credit card processing. PECOS.icm also supports a virtual sourcing engine that enables the online purchase and/or sale of IT products without the need to maintain inventory. Elcom Services Group, the company's U.S. VAR subsidiary, intends to offer a version of PECOS.icm to prospective customers as a major value added differentiator to acquire new IT Product customers.

PECOS Internet Marketplace Manager ("PECOS.imm") is the eMarketplace system that allows a client to create its own electronic marketplace, enabling it to act as a market-maker for buyers and sellers of products with transactions and catalog content managed by the company. Remotely-hosted by the Company, PECOS.imm allows enterprises to deploy an eMarketplace that supports a trading community which can include buyers and suppliers.

elcom, Inc.'s Dynamic Trading System provides "eNegotiation" capabilities for organizations and will allow organizations to negotiate goods and services not covered by existing electronic catalogs, thus significantly extending the scope of online buying and selling activities. Through selection of the appropriate trading model such as request for quotation or offer to sell, buyers and suppliers can effectively trade their goods at prevailing market prices determined by the forces of supply and demand. The elcom, Inc. eCommerce Network enables the delivery of functionally rich yet affordable eProcurement and eMarketplace solutions by providing access to specific shared capabilities that reside on the hosted network.

eCommerce Network is a branded, component-based technology platform which powers the company's eProcurement, eDistribution and eMarketplace offerings. The eCommerce Network is hosted on a non-stop, high availability hardware platform and enables enterprises of all sizes to outsource their eProcurement, eDistribution and eMarketplace initiatives to Elcom which offers a unique single-point-of-accountability for multiple aspects of the deployment and ongoing management of an eBusiness system. Elcom's solutions preclude the need for customers to invest in sophisticated high availability infrastructures, application software or the variety of services required to deploy and manage a B2B eCommerce system. Elcom's eCommerce Network provides access to shared application services such as its optional dynamic trading system engine as well as a commerce service infrastructure that includes interactive transaction processing between trading partners in a variety of formats such as EDI, XML, e-mail and fax. Further information is available at http://www.elcom.com/.

About Howell Township Board of Education

The Howell Township Board of Education is a regional public school system located in New Jersey comprised of ten school locations from kindergarten through eighth grade with over 7,700 students, 700 employees and an annual budget of approximately $79 million.

Howell Township Board of Education can be found on the World Wide Web at http://www.howell.k12.nj.us/.

About Elcom International, Inc.

Elcom International, Inc., operates two wholly-owned subsidiaries: elcom, inc., an international provider of remotely-hosted eProcurement and Private eMarketplace solutions and Elcom Services Group, Inc., which provides leveraged procurement services for IT products. elcom, Inc.'s innovative remotely-hosted technology establishes the next standard of value and enables enterprises of all sizes to realize the many benefits of eProcurement without the burden of infrastructure investment and ongoing content and system management. PECOS Internet Procurement Manager, elcom, Inc.'s remotely- hosted eProcurement and eMarketplace enabling platform was the first "live" remotely-hosted eProcurement system in the world.

Elcom International can be found on the World Wide Web at http://www.elcominternational.com/.

For more information, call 858/270-6305.