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ROYAL SAUDI AIR FORCE TYPHOON AIRCRAFT DEAL ENHANCES TRANCHE 2 DELIVERIES FOR EMRISE RANCHO CUCAMONGA, CALIFORNIA, February 2, 2006 - EMRISE CORPORATION (PCX:ERI), a multi-national manufacturer of defense and aerospace electronic components and communication equipment today announced its U.K. subsidiaries, which are existing suppliers of power supplies and RF components and subsystems, are expected to benefit from the amended agreement signed in December 2005 by the Governments of the Kingdom of Saudi Arabia and the United Kingdom of Great Britain and Northern Ireland. Under this expanded military agreement, the Royal Saudi Air Force (RSAF) intends to acquire at least 24 Eurofighter Typhoon aircraft as replacements for its current air force fleet of Panavia Tornado air defence variant (ADV) fighters. Announcing the agreement, the U.K. Ministry of Defence (MOD) said, “Under the terms of the signed document, Typhoon aircraft will replace Tornado ADV aircraft and other aircraft currently in service with the RSAF.” The details of these arrangements are confidential between the two Governments. However, the U.K. MOD went on to state, “The delivery of the initial 24 aircraft will be drawn from the U.K. Royal Air Force’s (RAF) allocation of 89 Tranche 2 Typhoons, a contract which was signed in December 2004.” The U.K. MOD stressed that “the RAF will receive additional Tranche 2 airframes to offset this transfer, and that the Saudi Arabian deal will have no impact on its commitment to sign a Tranche 3 deal to take the U.K.’s total Typhoon purchase to 232 aircraft from the overall production.” Graham Jefferies, Chief Operating Officer of EMRISE Corporation said, “The Typhoon aircraft currently represents our largest open order at $8 million. We are now building product for Tranche 2 with delivery scheduled to start this year. We believe the structure of this new deal between the U.K. MOD and Saudi MOD will result in an increase in demand for Tranche 2 Aircraft. Each Typhoon aircraft represents equipment sales for EMRISE in excess of $50 thousand and the Saudi’s initial deliveries of Tranche 2 Eurofighter aircraft represents approximately $1.2 million in new orders for EMRISE. These orders would likely be received in 2006 and would likely be added to our shipment of product in 2007.” The Eurofighter Typhoon aircraft is produced by a consortium comprising the European Aeronautic Defence and Space Company (EADS) with 46 percent ownership, BAE Systems with 33 percent and Italy's Alenia/Finmeccanica with 21 percent. Before the Saudi and U.K. MOD agreement Tranche 2 deliveries were originally scheduled only for Eurofighter partner nations Germany, Italy, Spain and the U.K., as well as Austria which is an export customer. About EMRISE CORPORATION EMRISE Corporation is a multi-national manufacturer of defense and aerospace electronic components and communications equipment. EMRISE’s electronic components group, which consists of EMRISE Electronics Corporation and its international subsidiaries, provides custom power conversion, RF components and subsystems as well as digital and rotary switches to the North American, European and Asian electronic components market. These products are primarily used for defense, aerospace and industrial applications. EMRISE’s communications equipment group, consisting of CXR Larus Corporation and its subsidiary CXR Anderson Jacobson, provides network access, satellite timing and synchronization and transmission products as well as communications test equipment to the North American, European and Asian communications industry. Founded in 1983, EMRISE operates out of facilities in the United States, England, France and Japan. As of December 31, 2005, EMRISE had a total of 329 employees in its various subsidiaries and divisions. Website: www.emrise.com. Listed on ArcaEx® under the ticker symbol: ERI. 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 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, the ability of the U.K. agreement with Saudi Arabia regarding the number of Eurofighter Typhoons to result in the acceleration of Tranche 2 production orders for EMRISE, Saudi Arabia’s initial deliveries of 24 Eurofighters to provide $1.2 million of additional orders and shipments and those factors contained in the “Risk Factors” Section of the company’s Form 10-K for the year ended December 31, 2004.
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