FOR IMMEDIATE RELEASE

CONTACT: Allen & Caron Inc
Rene Caron (investors) Len Hall (media)
949-474-4300
408-573-2705
rene@allencaron.com
len@allencaron.com

Brandi Festa
EMRISE Director of Finance and Administration
bfesta@emrise.com
408-573-2705


EMRISE CORPORATION ANNOUNCES ORDERS FOR $500,000 OF COMMUNICATIONS
TEST EQUIPMENT FROM FAA AND U.S. NAVY

Brings Total Value of Orders Received To Date under Current Multi-Year Contracts to $2.7 Million

DURHAM, NC - October 12, 2010 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that it has received orders valued at $500,000 to supply a custom-featured version of the Company's Halcyon Universal Data Test Set to the Federal Aviation Administration (FAA) and the U.S. Navy as part of existing multi-year contracts to upgrade communications technology used in military and civilian aviation communications networks.

EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said these orders called for shipment of Halcyon Test Sets valued at $300,000 in September of this year, with the balance to be shipped in October and November. He also said the Company expects additional orders for the custom-featured Test Sets from the U.S. Navy in the fourth quarter of this year and from the FAA in the first quarter of 2011.

The orders were received by the Company's San Jose, CA-based CXR Larus Corporation (CXR Larus) subsidiary, which develops and supplies communications equipment, including network timing and synchronization products and other network access equipment for both public and private networks.

In addition to the custom-featured Halcyon Universal Test Sets that make up these orders, EMRISE also sells a number of other communications products to major systems integrators who incorporate them into the systems they install in various communication networks for a number of government agencies and military organizations in the U.S., U.K. and continental Europe.

"Since the inception of this program two years ago, including these orders, we have received $2.7 million in orders under our existing multi-year contracts with the FAA and the U.S. Navy for custom-featured Test Sets. U.S. government agencies and various branches of the U.S. military have long been significant customers, and we believe these orders demonstrate the continued confidence and value these organizations place in CXR Larus products," Oliva said.

"In addition to these Test Set orders from the FAA and U.S. Navy here in the U.S., we have also recently received orders for communications test equipment from customers in France. And, I am pleased to report that we expect to see an overall increase in orders for a broader range of our communications products in both the U.S. and Europe in upcoming quarters," Oliva added.


About the Halcyon Universal Data Test Set
The Halcyon 704A is a "Three Personality" test system offering TIMS, Digital Data (DDS) or T1 test capability singularly or all three combined into a single unit. Model 704A-NTS1/FAA/SS contains all three test capabilities, replacing up to a dozen legacy FAA test sets, allowing technicians to carry a single instrument to local or remote circuit access locations.

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; radio frequency (RF) and microwave signal processing; and network access and timing and synchronization of communications networks. The use of its network products in network timing and synchronization in edge networks is a primary growth driver for the Company's Communications Equipment business segment. The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board in-flight entertainment and communications systems is a primary growth driver for the Company's Electronic Devices business segment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England and France. The Company has built a worldwide base of customers throughout the U.S., 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, certain matters discussed in this press release are forward looking statements within the meaning of the Private Securities Litigation Reform Act including but not limited to the expectation of additional orders for the custom-featured Test Sets from the U.S. Navy in the fourth quarter of this year and from the FAA in the first quarter of 2011, and the expected overall increase in orders for a broader range of the Company's communications products in both the U.S. and Europe in upcoming quarters. The actual future results of EMRISE could differ from those statements. The Company refers you to those factors contained in the "Risk Factors" Section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2009, as amended, Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.

 

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