Issue of Equity

RNS Number:6662Q
Elcom International Inc
05 February 2007

Elcom International Inc

                  Elcom Raises $2.5 million (#1.3 million) via
                          an Issuance of Shares on AIM


NORWOOD, MA, February 5, 2007 - Elcom International, Inc. ("Elcom" or the
"Company") (OTCBB:ELCO) and (AIM:ELC and ELCS), a leading international provider
of Commerce Process Management solutions for buyers, suppliers and commerce
communities, is pleased to announce that it has entered into subscription
agreements to raise $2.5 million (#1.3 million), through an issue of 73,230,009
new common shares (the "New Shares") at a price of 1.75 pence (UK) or $0.0344
per share. The proceeds of the issue will be used to meet the working capital
requirements of the Company.

The New Shares are being subscribed by and on behalf of investment clients of
Smith & Williamson Investment Management Limited who, together with Smith &
Williamson Nominees Limited, currently hold approximately 69.4% of the Company's
issued common shares. Following the issue of the New Shares, this holding will
increase to 73.5% of the Company's enlarged issued common shares. This
subscription represents a related party transaction under the AIM Rules. The
Directors of the Company consider, having consulted with its nominated adviser,
that the terms of the subscription are fair and reasonable insofar as its
shareholders are concerned. Completion of the subscription is conditional on the
admission of the New Shares to AIM. Application has been made for the New Shares
to be admitted to trading on AIM and this is expected to become effective on 6
February 2007.

The issuance of the New Shares is being made in reliance on the exemption from
registration under Regulation S of the U.S. Securities Act of 1933, for offers
and sales of securities outside the U.S. Under Regulation S, the holders of the
New Shares will be prohibited from reselling such shares in the U.S. to U.S.
persons or entities or for the benefit or account of a U.S. person, for a
one-year period. During this one-year period, holders of the New Shares may
otherwise trade such shares in the United Kingdom through the facilities of the
London Stock Exchange's AIM market ("AIM") and outside the U.S. pursuant to
Regulation S and subject to securities laws applicable in the jurisdiction(s) in
which such shares are traded. The New Shares are being listed on AIM under the
symbol 'ELCS' (the 'S' denoting Regulation S shares) but will not commingle with
the Company's common stock traded on the OTCBB (and AIM under the symbol 'ELC'),
until and unless the Company registers the shares under the U.S. Securities Act
of 1933 or an exemption from registration is available.

John Halnen, Elcom's President and CEO, said, "We are very pleased to secure
these additional operating funds for the Company. In 2006, we consummated a
number of strategic alliances, and in addition we are expecting additional
contracts/initiatives which require evidence of a stronger balance sheet to
perform to contract expectations. Also, the Company's current facility lease is
up at the end of 2007 and a move to a new facility and outsourcing of our data
center operations are being evaluated for the most cost effective solution for
the Company and its customers. While evaluating new facilities, full
consideration to meet current contracts and existing performance requirements
are being carefully reviewed to ensure full compliance."

About Elcom International, Inc.

Elcom International, Inc. (OTCBB:ELCO and AIM:ELC and ELCS), is a leading
international provider of Commerce Process Management solutions for buyers,
suppliers and commerce communities. Commerce Process Management refers to the
ability to effectively manage the large-scale exchange of goods and services,
using information technology and best practices, between different
organizations, including the purchase, sale, exchange of commodities and
services and their receipt and payment in one seamless end-to-end integrated
process. Beyond the current generation of "On Demand" solutions available in the
market, Commerce Process Management Solutions provided by Elcom offer true value
for money by eliminating the burden and cost of in-house programming, IT
infrastructure and ongoing system management. More information is available from
Elcom's web site at: www.elcom.com

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 necessity for the Company to control its expenses as well as to generate
incremental, ongoing operating revenues and whether this objective can be met
given the overall marketplace and clients' acceptance and usage of eCommerce
software systems, eProcurement and eMarketplace solutions including corporate
demand therefore, the impact of competitive technologies, products and pricing,
particularly given the substantially larger size and scale of certain
competitors and potential competitors; (ii) the consequent results of operations
given the aforementioned factors; and (iii) the necessity of the Company to
achieve profitable operations within the constraints of its existing resources,
and if it can not, the availability of incremental capital funding to the
Company, particularly in light of the audit opinion from the Company's
independent registered public accounting firm in the Company's 2005 Annual
Report on Form 10-KSB, as amended, and other risks detailed from time to time in
its March 31, June 30, and September 30, 2006 Quarterly Reports on Form 10-QSB
and in its other SEC reports and statements, including particularly the
Company's "Risk Factors" contained in the prospectus included as part of the
Company's Registration Statement on Form S-3 filed on June 21, 2002. The Company
assumes no obligation to update any of the information contained or referenced
in this press release.

                                    - END -




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

END
IOEILFEEFEIFIID