elcom, inc., the eProcurement and eMarketplace solutions subsidiary of Elcom International, Inc. (NASDAQ:Elco) yesterday that Northern Foods plc, a major U.K. food producer, will pilot elcom’s remotely-hosted eProcurement system, PECOS Internet Procurement Manager (PECOS.ipm) in one of its operating companies in the U.K.

Dr. Geoff Andrews, technical services executive for Northern Foods plc said, “We chose elcom as our eProcurement solution provider because of their remotely-hosted technology, ease of use and rapid deployment capability. Using the “QuickStart” pilot program, we will be able to quickly establish the benefits of eProcurement and enable us to access real-time purchasing information, improve the control of purchasing and strengthen relationships with our suppliers.”

Robert J. Crowell, chairman and CEO of elcom, inc. added, “We are very pleased to add Northern Foods to the growing list of international companies that have chosen PECOS Internet Procurement Manager as their eProcurement solution provider. Northern Foods is committed to continuously improving their purchasing processes and has a clear understanding of the benefits that elcom’s automated procurement system will generate. We expect Northern Foods to use our system to provide the best combination of an efficient eProcurement system with a strategic eProcurement best practices plan for the future.”

PECOS.ipm simply requires internet access to provide Northern Foods employees with browser-based self-service purchasing functions directly from their desktops, including multi-vendor electronic catalogs that support standard or negotiated “custom” pricing with preferred suppliers. PECOS.ipm’s full-circle functionality improves service at all levels, including support for “order status” inquiries, automated e-mail authorization, and time-stamped audit trails throughout the entire transaction cycle.

Additional benefits of PECOS Internet Procurement Manager are the reduction of the administrative costs associated with core procurement activities including order and invoice processing costs through automation of the traditional manual processing and inventory and related activities. With its customizable controls, PECOS Internet Procurement Manager can also minimise maverick spending by channelling spending purchases to nominated suppliers thus generating increased contract compliance and volume discounts. Lastly, PECOS Internet Procurement Manager captures purchasing data on supplier performance for timely and easy-to-understand metrics to aid in supply management decisions.

elcom, inc.’s Product Offerings Include:

PECOS Internet Procurement Manager (PECOS.ipm) is elcom, inc.’s remotely-hosted eProcurement solution that automates the procurement process from product information discovery and ordering through financial settlement. PECOS.ipm is rapidly deployable, has a low cost of implementation, and provides client’s personnel with browser-based self-service purchasing functions directly from their desktops, including multi-vendor electronic catalogs that support standard or negotiated “custom” pricing with preferred suppliers. PECOS.ipm requires only a Web browser to access and streamlines the internal and external procurement process at all levels, including support for “order status” inquiries, automated e-mail approval routing, and time-stamped audit trails throughout the entire transaction cycle.

PECOS Internet Exchange Manager (PECOS.iem) is elcom, inc.’s remotely-hosted eMarketplace solution that enables market makers to create community of commerce without the need to invest in infrastructure, custom application development and ongoing system management. PECOS.iem provide market makers with a complete solution that has been designed to automate the entire B2B commerce process by enabling new levels of trading partner collaboration. Remotely-hosted by elcom, PECOS Internet Exchange Manager, is based on an open collaborative commerce architecture which is designed to enable trading partner self service while still preserving the control that is critical to effective eMarketplace management. PECOS Internet Exchange Manager’s collaborative commerce framework enables instant usability, trade partner self-service and process adaptability.

About Northern Foods plc

Northern Foods is a leading UK food producer with annual revenues of approximately 1 billion dollars (US), specializing in eight core product areas. Northern Foods focuses on serving the leading retailers and has strong market positions in the supply of high quality chilled foods under their retail names. In addition, successful brands include Fox’s Biscuits, Ski Yogurt, Goodfella’s Pizza and Pork Farms. For more information about Northern Foods visit: www.northern-foods.co.uk

About Elcom International, Inc.

Elcom International, Inc. (www.elcominternational.com), through its wholly-owned subsidiary, elcom, inc., is the global leader of remotely-hosted eProcurement and eMarketplace solutions. elcom’s innovative technology leadership with PECOS Internet Procurement Manager, the world’s first “live” remotely-hosted eProcurement platform, and PECOS Internet Exchange Manager, its second generation eMarketplace platform, establishes the next standard of value and enables enterprises of all sizes to realize the many benefits of B2B eCommerce without the burden of infrastructure investment and ongoing content and system management. elcom solutions compete against such companies as Ariba, Inc., Commerce One, PurchasePro.com, and Clarus Corporation.

Statement Under the Private Securities Litigation Reform Act

This press release includes statements that may constitute forward-looking statements. 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,” “intends,” “expects,” “will,” “plans,” “anticipates,” or similar expressions, are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Such risks and uncertainties include: the overall markets’ and individual customers’ acceptance and usage of the Company’s electronic commerce software systems, the uncertainties surrounding the negotiation and formation of any joint venture, the risks of doing business in foreign countries, and the impact of competitive technology products as well as factors and other risks detailed in the Company’s Registration Statement on Form S-3 and from time to time in the Company’s other reports filed with the SEC. The Company assumes no obligation to update any of the formats of, or information contained or referenced, in this announcement.

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