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EMRISE CORPORATION’S CXR ANDERSON JACOBSON SUBSIDIARY SIGNS MANUFACTURING AGREEMENT WITH HITACHI COMPUTER PRODUCTS EUROPE RANCHO CUCAMONGA, CALIFORNIA, January 30, 2007 - EMRISE CORPORATION (NYSE ARCA:ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that its French subsidiary, CXR Anderson Jacobson (“CXR-AJ”), has signed a manufacturing agreement with Hitachi Computer Products Europe (“Hitachi”) whereby Hitachi will manufacture, on a turnkey basis, a range of CXR-AJ network access products at Hitachi’s manufacturing facility located in Orleans, France. Pierre Eybraly, General Manager of CXR Anderson Jacobson, commented, “We are delighted to have Hitachi manufacture our products. Hitachi is one of the pre-eminent manufacturing companies in the world today. We believe that the global parts procurement capability of Hitachi, coupled with its state-of–the-art manufacturing facilities, will allow us to realize our goal of offering low-cost, high-quality products. The strength of Hitachi’s manufacturing and world-wide logistics helps position us to better address the needs of our target carrier market while allowing us to focus our efforts on the development and marketing of existing and new products, especially the new ’TiemPo’ timing and synchronization product recently announced by CXR Larus in the United States.” Carmine T. Oliva, Chief Executive Officer of EMRISE Corporation, commented, “This agreement provides our European communications subsidiary with a truly world-class manufacturing partner which complements and expands upon our existing manufacturing relationship with Hitachi Oklahoma Manufacturing Division in the U.S. We believe that through this new Hitachi relationship we will greatly increase our ability to deliver high-quality, high volume production for the European market. We also believe that it should result in substantially improved gross margins for our communications products and provide a platform to drive the growth of our European business in 2007 and beyond. Suffice it to say, we are extremely pleased to have Hitachi supporting our manufacturing in the U.S. and now in Europe.” About Hitachi Established in 1991 in Orleans (France), Hitachi Computer Products Europe is the Hitachi Group’s European Production Center for IT systems. In the computer and electronics fields, Hitachi Computer Products Europe is actively involved in high-technology manufacturing such as production of magnetic disk drives controllers, development and manufacturing of interactive multimedia kiosks, artwork protection systems, and electronic manufacturing subcontracting (industrial partnerships). With the support of the Hitachi Group’s advanced-technology network, Hitachi Computer Products Europe‘s site enjoys top-notch technical capability and staff to satisfy the needs of their customers, in terms of quality, adaptability and costs. About EMRISE CORPORATION EMRISE Corporation is a multi-national manufacturer of defense and aerospace electronic devices and communications equipment. EMRISE’s electronic devices group, which consists of EMRISE Electronics Corporation and its international subsidiaries, provides power conversion, RF devices as well as digital and rotary switches to the North American, European and Asian electronic 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 and timing and synchronization products 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 2006, EMRISE had a total of approximately 300 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 statements regarding our ability to realize our goal of producing low-cost, high-quality products through our manufacturing relationship with Hitachi and our ability to realize improved gross margins as a result of this relationship, 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, Hitachi’s ability to manufacture products on a timely basis; market acceptance and demand for the company’s new and existing products; general market and economic conditions as well as conditions and trends in the communications products industry and with respect to CXR AJ’s existing and potential customers; changes in technology and governmental regulations and policies, competitive products and services; unforeseen technical issues, and those factors contained in the “Risk Factors” Section of EMRISE Corporation’s amended Form 10-K for the year ended December 31, 2005.
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