Tuesday February 23, 9:37 am Eastern Time
Company Press Release
Elcom Adding Internet Auction
Capabilities to Expand Internet Sales
Site
Technology License Will Enhance elcom.com's Internet Sales Site With
Auctioning Capabilities
NORWOOD, Mass.--(BUSINESS WIRE)--Feb. 23, 1999--Elcom International, Inc., (the ''Company''),
(NASDAQ:ELCO - news), today announced it has signed a license for auction software technology
to broaden the website capabilities and appeal of elcom.com, inc., the Company's wholly-owned
Internet subsidiary (www.elcom.com). elcom.com plans to add auction site capabilities to its
Internet sales and website in late March.
elcom.com's Internet auction capability will be integrated seamlessly into elcom.com's website
which is targeted to ''go live'' next week. elcom.com's new auctioning capabilities are being
designed for business customers to auction their used or other personal computer equipment as
well as for general merchandise auctioning by consumers, generally similar to the way that
eBay Inc. (NASDAQ:EBAY - news), uBid Inc. (NASDAQ:UBID - news), and Multiple Zones
International, Inc. (NASDAQ:MZON - news) auction various products and services.
Robert J. Crowell, Elcom International's Chairman and Chief Executive Officer, said, ''Licensing
this technology is an important step in the development of elcom.com and to Elcom
International. I believe the perception of our Company's value is changing as people see our
technology capabilities expand into the marketplace, including PECOS.pm, our automated
procurement system application. We continue to invest in elcom.com, and based on our view of
the changing marketplace, auctioning PC and other products is a service well appreciated by
business customers and general consumers and this technology license allows us the
opportunity to get in very early. We are reinventing the Company as we transition to more of an
Internet-based structural platform and hope to have elcom.com's website become a
portal-oriented website in the future.''
elcom.com, which developed its proprietary and electronic automated sourcing procurement
system over the past five years, will use this automated sourcing and procurement technology
to initially market and sell over 75,000 products to businesses and consumers. elcom.com's
Internet sales site will be on-line 24 hours a day, seven days per week and will, on the launch
date, include personal computer-oriented products and during the second quarter, office
supplies and other products. In addition, elcom.com intends to create a second Internet sales
website using its existing infrastructure for its subsidiary in the U.K. during 1999 and offer
most, if not all, of the same types of products and services in the U.K.
Initially in the U.S. and later in the U.K., elcom.com intends to leverage the Company's existing
proprietary automated sourcing technology which, in the U.S., connects with Ingram Micro, Inc.
and Tech Data Corporation, two of the world's largest PC distributors. This automated sourcing
technology allows the Company to have a multi-billion dollar on-line inventory available to its
customers and to offer one of the broadest selections of personal computer products in the
industry, with next-day delivery for non-configured systems.
About Elcom International, Inc.
Elcom International, Inc., through its wholly-owned subsidiaries, develops, licenses, and uses
client/server and Internet transaction-based software systems which enable the conduct of
PC-based interactive electronic commerce over the Internet and telephone networks. Elcom
Services Group, Inc., the Company's PC remarketing and professional services subsidiary, uses
the Company's electronic commerce technology to support the marketing of PC products and now
operates seven field sales and support offices in the United States and seven in the United
Kingdom. elcom.com, inc., (www.elcom.com), was formed in December 1998 and recently merged
with Elcom Systems, Inc., the Company's technology and electronic commerce subsidiary.
elcom.com will operate as an Internet on-line remarketer of PC-oriented and other products
using the Company's electronic commerce and automated procurement and sourcing technology.
In this market sector, elcom.com will compete against companies including Cyberian Outpost,
Inc. (NASDAQ:COOL - news), Creative Computers, Inc. (NASDAQ:MALL - news) and Insight
Enterprises, Inc. (NASDAQ:NSIT - news). Additionally, elcom.com licenses its PECOS
technologies to Elcom Services Group's customers and to other companies and competes against
companies including Concur Technologies, Inc. (NASDAQ:CNQR - news). elcom.com also intends to
compete through its Internet auction site with companies such as eBay Inc. (NASDAQ:EBAY -
news), uBid Inc. (NASDAQ:UBID - news) and Multiple Zones International, Inc. (NASDAQ:MZON -
news).
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: customers' acceptance and usage of the
Company's electronic commerce software systems and the functionality of the Company's
website; ultimate timing and ability in implementing its various capabilities including
auctioning; the impact of competitive technology products and the utility and competitiveness
of the Company's product and service offerings as well as factors and other risks detailed in
the Company's 1997 Annual Report on Form 10-K and from time to time in the Company's other
reports filed with the SEC.
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