EMRISE’S SUBSIDIARY, CXR LARUS, WINS SUPPLY CONTRACT WITH A MAJOR ENERGY CO-OP FOR ITS STARCLOCK™ TIEMPO NEXT GENERATION NETWORK TIMING SYSTEM

RANCHO CUCAMONGA, CALIFORNIA, June 5, 2007 - EMRISE CORPORATION (NYSE ARCA:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that its subsidiary, CXR Larus Corporation, has won a contract with the Western Area Power Administration (“WAPA”), one of the largest electric generation and transmission cooperatives in the United States to supply its next generation network (NGN) timing system, StarClock™ TiemPo, for the WAPA’s internal communications and control systems. The terms of the contract also allow other energy co-ops that are customers of the WAPA to procure products from CXR Larus. The WAPA is an agency of the U.S. Department of Energy that markets and delivers reliable, cost-based hydroelectric power and related services within a 15 state region in the Central and Western U.S.

CXR Larus produces a diverse range of telecommunications products including network timing and synchronization equipment, network access and LAN extension products and test equipment for both public carriers and private telecommunications networks on a worldwide basis.

Carmine T. Oliva, Chairman, President and CEO, remarked: “Our new StarClock™ TiemPo timing system is one of our primary growth drivers for 2007 and beyond. Winning this contract is particularly significant and validates our investment in design engineering during 2006 to develop our NGN solution. This solution allows our customers to make the flexible move from traditional circuit switched networks to timing over packet and provides the additional control capabilities needed by the power companies. This solution is provided in a highly scalable and compact physical size.” He added, “This initial contract from a major electric utility also confirms our belief that other utility companies may become a specialty growth market segment for our new timing solutions and other of our network access products.”

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, radio frequency 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. EMRISE has 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 EMRISE CORPORATION’s belief that other utility companies may become customers of EMRISE CORPORATION, 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 EMRISE CORPORATION’s ability to manufacture products to meet expected demand and existing and future orders; general market and economic conditions; 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 Form 10-K for the year ended December 31, 2006 and other EMRISE CORPORATION filings with the Securities and Exchange Commission.

 

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