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Wednesday, July 18, 2008, 8:45 ET FOR IMMEDIATE RELEASE:
EMRISE Corporation Receives Initial Production Release
Under
Existing Three-Year $800,000 US Navy Contract
Plans Immediate Shipment to Navy of First $300,000 of Halcyon Test
Equipment; Also Expects $800,000 Contract from FAA for Derivative
Testing Unit RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--EMRISE CORPORATION (NYSE
Arca: ERI), a multi-national manufacturer of defense and aerospace
electronic devices and communications equipment, today announced that it
has received the initial production release and plans immediate shipment
of the first $300,000 of its Halcyon telecommunications test equipment
under the terms of a previously announced $800,000 supply contract with
the U.S. Department of the Navy. The three-year agreement calls for the
company’s San Jose, CA-based CXR Larus subsidiary to provide the Navy
the company’s full line of Halcyon handheld field test equipment to be
used in a variety of telecommunications testing applications.
In addition to the Navy, other government agencies including the
Department of Homeland Security and the Federal Aviation Administration
(FAA), among others, can also purchase Halcyon test equipment under the
terms of the Navy’s agreement. For example, CXR Larus is also actively
engaged with the FAA to produce a derivative testing unit for a
specialized testing application based on the unit developed under Navy
contract.
EMRISE President and Chief Executive Carmine T. Oliva said that
the company expects to receive orders for the new derivative testing
units from the FAA in the very near future, and that the new FAA program
could have a contract value in excess of $800,000.
“Even though test instruments are a non-core business for EMRISE, the
Navy contract provides important and ongoing validation of the
capability of the Halcyon line of test equipment,” Oliva added. “To be
able to meet the exacting special testing standards of the Navy, other
armed forces and the FAA with our Halcyon test equipment demonstrates
the commitment of our team to understand and engineer customized testing
products for the extensive T1 copper telecommunications networks
deployed by the U.S. government.
“The pending award from the FAA for the derivative Navy product is part
of the expected upside from the Navy contract,” Oliva said. “Because the
Halcyon product has been the tester of choice for the multi-billion
dollar FAA commercial air tower communications equipment upgrade program
for the past several years, the Navy award and pending FAA product are
the natural progression of the government’s continued use of the Halcyon
line.”
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems
and equipment for aerospace, defense, industrial and communications
markets. EMRISE products perform key functions such as power supply and
power conversion; RF and microwave transmission; digital and rotary
switching; network access and timing and synchronization of
communications networks. Primary growth driver applications for EMRISE
products include commercial avionic “In-Flight Entertainment and
Communications” products and communications “Network Timing and
Synchronization” equipment. EMRISE serves customers in North America,
Europe and Asia through operations in the United States, England, France
and Japan. The Company has built a worldwide base of customers including
all of the Fortune 100 in the U.S. that do business in markets served by
EMRISE and many similar-size companies in Europe and Asia. For more
information go to www.emrise.com
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
With the exception of historical information, the matters discussed in
this press release, including without limitation EMRISE’s ability to
immediately ship $300,000 of Halcyon test equipment, ability to receive
additional test equipment orders from the FAA or any other government
agencies, ability to produce a derivative testing unit for the FAA,
ability to meet expectations of the Navy or any other government agency,
ability to benefit from any upside as a result of the existing Navy
contract, and the ability to predict the government’s continued use or
reliance on the Halcyon line are all forward-looking statements that
involve a number of risks and uncertainties. The actual future results
of EMRISE CORPORATION could differ from those statements. Factors that
could cause or contribute to such differences include, but are not
limited to, unforeseen technical issues, changes or delays in the Navy’s
expected demand for product, decisions by the Navy, FAA or other
government agencies to postpone or to not purchase additional test
equipment, quality issues and/or unforeseen difficulties in developing a
derivative test unit that satisfies the technical requirements of the
FAA and/or the inability of EMRISE to deliver such a product at a price
that is acceptable to the FAA, decision by the Navy, FAA or any other
government agency to discontinue the Halcyon test line and/or decisions
by such agencies to upgrade existing networks and associated test
equipment, and those factors contained in the “Risk Factors” Section of
the Company’s Form 10-K for the year ended December 31, 2007, and other
Company filings.
Contact: EMRISE Corporation John Donovan Vice President Finance and Administration
(909) 987-9220 ext. 3201
JDonovan@emrise.com
or
Allen & Caron Inc
Dan Matsui (investors) Len Hall (media)
949-474-4300
D.Matsui@allencaron.com Len@allencaron.com
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