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EMRISE Corporation’s CXR Larus Subsidiary Receives Initial Deliveries of the StarClock™ 200 Timing Product From Outsourcing Partner Hitachi OMD RANCHO CUCAMONGA, CALIFORNIA, May 31, 2006- EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic components and communications equipment, today announced that its CXR Larus subsidiary in San Jose, CA, has received first production deliveries of its StarClock™ 200 line of products from its turnkey contract manufacturer, Hitachi OMD of Norman, OK. The network timing and synchronization product is the first product to be outsourced to Hitachi and the Company expects order placement for its new StarSync™ timing and synchronization product as well as other network access and transmission products will follow throughout 2006. Larry Taillie, President of CXR Larus Corporation, commented, “The delivery of the first production network timing and synchronization products from Hitachi is a significant milestone for CXR Larus. CXR Larus and Hitachi OMD worked hard to get to this point. We believe manufacturing of our products by Hitachi provides our customers with high quality, high reliability products produced by one of the preeminent manufacturers in the world today.” Graham Jefferies, Chief Operating Officer of EMRISE Corporation, commented, “The initial production deliveries of CXR Larus network timing products by Hitachi OMD is the culmination of a 15 month process to identify and develop an outsource relationship for all of our telecommunications products. In addition to the initial production deliveries for CXR Larus here in the United States, our French subsidiary, CXR Anderson Jacobson (“AJ”), is in active discussions with Hitachi France Manufacturing in Orleans, France to potentially produce CXR AJ’s line of products. Outsourcing of manufacturing to Hitachi will allow our communications group to focus resources on engineering, marketing and selling our telecommunications products while Hitachi provides the manufacturing capability for us.” 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 April 30, 2006, EMRISE had a total of 317 employees in its various subsidiaries and divisions. Website: www.emrise.com. Listed on NYSE Arca 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, including without limitation, the placement of additional orders for StarSync™ timing and synchronization products and network access products with Hitachi, during 2006 and the outsourcing of CXR AJ products to Hitachi France Manufacturing are forward-looking statements that involve a number of risks and uncertainties. The actual future results could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the ability of the Company to successfully outsource the manufacturing of certain of its products and other risks detailed from time to time in the Company’s public statements and its periodic reports and other filings with the Securities and Exchange Commission.
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