December
                17, 2007
              
              To
                the Audit Committee of the Board of Directors
              Elcom
                International, Inc
              
              We
                have audited the consolidated financial statements ofElcom
                International, Inc(the “Company”) for the year endedDecember
                31, 2006,
                and have issued our report thereon dated December 17, 2007. Professional
                standards require that we provide you with the following information
                related to our audit.
              
              Our
                responsibility under Public Company Accounting Oversight Board
                Standards
              
              As
                stated in our engagement letter dated August 23, 2007, our responsibility,
                as described by professional standards, is to plan and perform the
                audit
                to obtain reasonable, but not absolute, assurance that the financial
                statements are free of material misstatement and are fairly presented
                in
                accordance with generally accepted accounting principles. Because
                an audit
                is designed to provide reasonable, but not absolute, assurance and
                because
                we did not perform a detailed examination of all transactions, there
                is a
                risk that material errors, fraud, or other illegal acts may exist
                and not
                be detected by us.
              
              Critical
                Accounting Policies and Practices
              
              Management
                is responsible for the selection and use of appropriate accounting
                policies. In accordance with the terms of our engagement letter,
                we will
                advise management about the appropriateness of accounting policies
                and
                their application. The critical accounting policies used by the Company
                are described in Note1 and 2 to the financial statements. No new
                accounting policies were adopted and the application of existing
                policies
                was not changed during2006.
                We noted no transactions entered into by the Company during the year
                that
                were both critical and unusual, and of which, under professional
                standards, we are required to inform you, or transactions for which
                there
                is a lack of authoritative guidance or consensus.
              
              Quality
                of the Company’s Accounting Principles
              
              Management
                is responsible not only for the appropriateness of the accounting
                policies
                and practices, but also for the quality of such policies and practices.
                The quality includes the consistency of the accounting policies and
                their
                application, the clarity and completeness of the financial statements,
                and
                includes items that have a significant impact on the representational
                faithfulness, verifiability, and neutrality of the accounting information
                included in the financial statements. We agree with management’s elected
                treatment of the transaction.














Management’s
      Judgments and Accounting Estimates





Accounting
      estimates are an integral part of the financial statements prepared by
      management and are based on management’s knowledge and experience about past and
      current events and assumptions about future events. Certain accounting estimates
      are particularly sensitive because of their significance to the financial
      statements and because of the possibility that future events affecting them
      may
      differ slightly from those expected. The most sensitive estimate(s) affecting
      the financial statements was (were):





We
      evaluated the key factors and assumptions used to develop the estimates in
      determining that it is reasonable in relation to the financial statements as
      a
      whole.





In
      preparing the audit for the fiscal year ended December 31, 2006 Elcom’s new
      management and their former auditors, Vitale Caturano & Company, recognized
      certain deficiencies in their internal controls This issue arose in relation
      with a cash deposit made by Elcom to a sales agent of €1,000,000 (approximately
      $1,200,000) which was in connection with Elcom’s potential bid for government
      contracts outside the United States. This transaction, which occurred in the
      4 th quarter
      of 2006, was completed without formal Board approval. As a result of this
      discovery, Elcom further reviewed its internal controls. Since such review,
      Elcom has strengthened its internal controls by adopting additional internal
      controls policies and procedures relating to cash, cash management and corporate
      governance. The funds were due to be repaid to Elcom by May 15, 2007, however
      to
      date have not been repaid. Elcom has filed a lawsuit for the return of these
      funds and is currently in discussion with their insurers. In light of this,
      Elcom has written off the entire balance as a bad debt as of December 31, 2006.
      Elcom has initiated legal proceedings against the sales agent to recover this
      amount. There can be no assurances that Elcom will be successful in its actions.
      Elcom also obtained legal advice in order to assess this matter for violation
      of
      the Foreign Corrupt Practices Act and at this time has determined there is
      no
      evidence of this transaction being violation of the FCPA.





The
      second matter which required investigation relates to an executed a document
      entitled “Agreement to Repay Accrued Salaries” with certain of its employees.
      Because of previous cash restraints dating as far back as to 2001, certain
      employees elected to receive lower salaries while Elcom implemented its cost
      containment programs. Elcom had verbally stated that it intended to repay
      accrued salaries for its employees, over two quarters, after Elcom achieves
      cash
      flow positive. Elcom, for the purposes of its Alternative Investment Market
      (AIM) listing in 2004, and by virtue of a representation made to Elcom’s
      Reporting Accountant changed this verbal comment and intent to repay accrued
      salary amounts into a contractual agreement with employees and therefore the
      amounts were classified as a liability within the balance sheet from 2004
      onwards. Because the arrangement was non-standard Elcom fully disclosed the
      nature of the arrangements, its intent to pay them, and the amounts involved
      in
      its previously issued proxy and financial statements.




2





The
      amounts due to executive officers under these arrangements are included in
      related party accrued salary, bonuses and interest, and the balance due to
      other
      employees is included in accrued expenses and other current liabilities. Upon
      the achievement of positive operating cash flow for two sequential quarterly
      periods, Elcom will begin to repay the amounts owed to these employees. As
      of
      December 31, 2006, the total deferred salary amount was $1,186,000. To
      date, the conditions precedent have not been met. We have assessed the
      likelihood of additional loss contingencies associated with these amount and
      has
      determined that as of December 31, 2006 and through the date of this letter,
      that it is neither probable nor reasonably estimable that any additional losses,
      other than the amounts already accrued be recognized or disclosed. We plan
      on
      disclosing such in or financial statements to be filed on Form 10KSB and
      subsequent interim filings on Forms 10QSB. We will continue to assess the
      likelihood of the additional loss contingencies on a go-forward basis.





Audit
      Adjustments





For
      purposes of this letter, professional standards define an audit adjustment
      as a
      proposed correction of the financial statements that, in our judgment, may
      not
      have been detected except through our auditing procedures. An audit adjustment
      may or may not indicate matters that could have a significant effect on the
      financial reporting process (that is, cause future financial statements to
      be
      materially misstated). In our judgment, all of the adjustments we proposed,
      whether recorded or unrecorded by the Company, either individually or in the
      aggregate, indicate matters that could have a significant effect on the
      Company’s financial reporting process. Please find our audit adjustments
      attached as an exhibit to this letter.





Disagreements
      with Management





For
      purposes of this letter, professional standards define a disagreement with
      management as a matter, whether or not resolved to our satisfaction, concerning
      a financial accounting, reporting, or auditing matter that could be significant
      to the financial statements or the auditor’s report. We are pleased to report
      that no such disagreements arose during the course of the audit.





Consultations
      with Other Independent Accountants





In
      some
      cases, management may decide to consult with other accountants about auditing
      and accounting matters, similar to obtaining a “second opinion” on certain
      situations. If a consultation involves application of an accounting principle
      to
      the Company’s financial statements or a determination of the type of auditor’s
      opinion that may be expressed in those situations, our professional standards
      require the consulting accountant to check with us to determine that the
      consultant has all the relevant facts. To our knowledge, there were no such
      consultations with other accountants.




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Issues
      Discussed Prior to Retention of Independent Auditors





We
      generally discuss a variety of matters, including the application of accounting
      principles and auditing standards, with management each year prior to retention
      as the Company’s auditors. However, these discussions occurred in the normal
      course of our professional relationship and our responses were not a condition
      to our retention.





Difficulties
      Encountered in Performing the Audit





We
      encountered no significant difficulties in dealing with management in performing
      and completing our audit.





Other
      Information in Documents Containing Audited Financial
      Statements





The
      Company’s audited financial statements will be included in its annual report.
      Our responsibility for other information contained in the annual report does
      not
      extend beyond the financial information identified in our audit report. We
      have
      no obligation to perform any procedure to corroborate the other information
      contained in the annual report. However, we read the other information and
      considered whether such information, or the manner of its presentation, was
      materially inconsistent with information, or the manner of its presentation,
      appearing in the financial statements. Nothing came to our attention that caused
      us to believe that such information, or its manner of presentation, is
      materially inconsistent with the information, or its manner of presentation,
      appearing in the financial statements.





This
      information is intended solely for the use of the Audit Committee, Board of
      Directors, and management of the Company and is not intended to be and should
      not be used by anyone other than these specified parties.





Very
      Truly Yours,




/s/
      Malone & Bailey, P.C.




Malone
      & Bailey, P.C.





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