EMRISE CORPORATION’S SUBSIDIARY SHIPS REMAINING $1.7 MILLION OF TEST EQUIPMENT ORDER TO A REGIONAL BELL OPERATING COMPANY (RBOC)

EMRISE Anticipates Ongoing Requirement from This RBOC of $3 Million over the Next 2 Years

RANCHO CUCAMONGA, CALIFORNIA, - January 12, 2005 - EMRISE CORPORATION (OTCBB: EMRI), an international manufacturer of defense and aerospace electronic components and subsystems and communication equipment, today announced, as a follow up to a previous announcement dated December 1, 2004, that its subsidiary, CXR Larus Corporation, has completed an order for $2 million for its Halcyon 704A-NTS1 test equipment. The entire order was shipped on an expedited basis and all units were delivered by December 31, 2004. CXR Larus delivered the first $276,000 of the order from stock in late November 2004, and the balance of the $2 million order was produced and delivered in the last three weeks of December.

Kevin Haug, president of CXR Telcom Division, commented: “Delivery of this order for 250 of our flagship Halcyon test units was the culmination of a tremendous team effort in the face of fierce competition from three major competitors who also hold ’primary supplier’ status for this RBOC. The logistical challenge for our manufacturing team to deliver all of the units in just three weeks was enormous, and our success represents an outstanding accomplishment. Under this RBOC’s program, we as the sole supplier expect follow-on orders for more of these units over the next 24 months totaling $3 million.”

Carmine Oliva, chief executive officer of EMRISE, commented: “We are pleased with the results of the team effort required to meet the challenge of delivering this large order under a very tight timetable. Our team expedited all phases of the project from the procurement of materials, coordination of offshore assembly and the final assembly and test of the units at our newly consolidated CXR Telcom and Larus facility in San Jose. There was a great deal of collaboration with the Larus team to help make the final assembly and shipments happen in such a timely fashion. The combination of offshore sourcing and the synergy of the combined CXR Larus organization facilitated this success. We also believe our ability to meet the customer’s timeframe ensured our success in obtaining the order. Even though this order caused approximately $500,000 in revenue from CXR and Larus to shift into the first quarter we still expect to meet our planned 2004 profit objectives, and expect only a minimal impact to our stated 2004 revenue goals. The orders that were delayed will contribute to a stronger first quarter 2005 for CXR Larus and provide increased momentum for 2005.”

About EMRISE CORPORATION

EMRISE CORPORATION is a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment. Our electronic components group, which includes XET Corporation and its international subsidiaries, provides custom power conversion products, digital and rotary switches and subsystem assemblies to the North American, European and Asian electronic components market and are primarily used for defense, aerospace and industrial applications. Our communications group, consisting of CXR Larus Corporation, and CXR Anderson Jacobson provides network access and transmission products, communications test instruments and satellite network timing and synchronization systems to the North American, European and Asian communications industry. Founded in 1983, EMRISE CORPORATION operates out of facilities in the United States, England, France and Japan. As of November 30, 2004, we had a total of 218 employees in our various subsidiaries and divisions. 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 are forward-looking statements, including without limitation, the ability of CXR Larus to obtain follow-on orders of $3 million from the RBOC, the ability to achieve a stronger base of business over the next 24 months, and the ability of CXR Larus to achieve stronger operating results for first quarter of 2005, which statements involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ materially from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the financial condition of our RBOC and other customers; our continued ability to procure materials, coordinate offshore assembly, and perform final assembly and test of units on a timely and cost-effective basis; growth or contraction in the electronic components and communications equipment markets in which we operate; our business strategy for expanding, maintaining or contracting our presence in these markets; anticipated and unanticipated trends in our financial condition and results of operations; our ability to distinguish ourselves from our current and future competitors; and those factors contained in the “Risk Factors” Section of our Form 10-K for the year ended December 31, 2003.