ELCOM INTERNATIONAL, INC. AND SUBSIDIARIES
                      2001 ANNUAL REPORT ON THE FORM 10-K
                               INDEX TO SCHEDULE



                                                          Page
                                                        Reference
                                                        _________

Independent Auditors' Report on Supplementary
    Information                                            S-2

Schedule II - Valuation and Qualifying Accounts
    for the Years Ended December 31, 1999, 2000
    and 2001                                               S-3

                                      S-1
<PAGE>

           Independent Auditors' Report on Supplementary Information





The Board of Directors
Elcom International, Inc.:

We have audited and reported  separately  herein on the  consolidated  financial
statements of Elcom International, Inc. and subsidiaries as of December 31, 2000
and 2001,  and for each of the years in the three year period ended December 31,
2001.

Our  audits  were  made for the  purpose  of  forming  an  opinion  on the basic
consolidated financial statements of Elcom International, Inc. taken as a whole.
The supplementary  information included in Schedule II is presented for purposes
of  additional  analysis  and is not a required  part of the basic  consolidated
financial  statements.  Such  information  has been  subjected  to the  auditing
procedures applied in the audits of the basic consolidated  financial statements
and, in our opinion,  is fairly  stated in all material  respects in relation to
the basic consolidated financial statements taken as a whole.

The accompanying consolidated financial statements and supplementary information
have been prepared  assuming that Elcom  International,  Inc. will continue as a
going  concern.  As  discussed  in  Note  1(a)  to  the  consolidated  financial
statements, the Company has suffered recurring losses from operations and has an
accumulated  deficit that raise  substantial doubt about the entity's ability to
continue as a going concern.  Management's  plans in regard to these matters are
also  described  in  Note  1(a).  The  consolidated   financial  statements  and
supplementary  information do not include any adjustments that might result from
the outcome of this uncertainty.

As discussed in Note 1(i) to the consolidated financial statements,  the Company
changed its method of  accounting  for the  impairment or disposal of long-lived
assets.


/s/ KPMG
KPMG



Boston, Massachusetts
March 29, 2002

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<PAGE>

                                                                     SCHEDULE II

                   ELCOM INTERNATIONAL, INC. AND SUBSIDIARIES

                      Valuation and Qualifying Accounts (a)

              For the Years Ended December 31, 1999, 2000 and 2001
                                 (in thousands)





                          Balance at                                    Balance
                          Beginning     Additions                      at End of
                          of Period     Recoveries     Utilizations      Period
                         __________     __________     ____________    _________
Allowance for Doubtful
       Accounts
For the years ending
_______________________

December 31, 1999        $  6,796       $   4,626      $   (8,345)      $  3,077
                         ========       =========      ==========       ========

December 31, 2000        $  3,077       $     440      $   (1,117)      $  2,400
                         ========       =========      ==========       ========

December 31, 2001        $  2,400       $  (1,283)     $     (800)(b)   $    317
                         ========       =========      ==========       ========


Inventory Valuation
     Accounts
For the years ending
_______________________

December 31, 1999        $  1,992       $  1,734       $   (2,956)      $    770
                         ========       ========       ==========       ========

December 31, 2000        $    770       $    (38)      $     (389)      $    349
                         ========       ========       ==========       ========

December 31, 2001        $    349       $   (243)      $       (1)      $    105
                         ========       ========       ==========       ========

(a)       Includes amounts from both continuing and discontinued operations for
          each period presented.

(b)       Includes $580,000, which was sold to AJJP, Limited as part of the U.K.
          reseller  business sale.  See Note 9 to the consolidated financial
          statements.

                                      S-3