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EMRISE’S Subsidiary, EMRISE Electronics Corporation, Receives Initial Distributor Stocking Orders Launching Worldwide Distribution Program for Very Low Profile (VLP®) Rotary Switches RANCHO CUCAMONGA, CALIFORNIA, July 12, 2007 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that its wholly owned subsidiary, EMRISE Electronics Corporation (“EEC”), has received its initial stocking orders from Powell Electronics, Inc for EEC’s patented Digitran brand of standard VLP® Rotary Switches, thereby launching a worldwide distribution program for this unique new standard family of very low profile rotary switches. Commenting on the launch, EMRISE Chairman, President and CEO, Carmine T. Oliva, said, “We are very pleased to receive initial stocking orders from the first of five major targeted domestic and international distributors for our patented and revolutionary standard VLP® Rotary Switches. EEC’s business model calls for exclusively retaining traditional custom rotary switches for aerospace and military applications. This traditionally high margin business will now be complemented by the launch of these new standard products into worldwide distribution channels, thereby extending EEC’s penetration into the much higher volume and broader industrial, medical and portable equipment markets. These markets especially require the small size, high reliability and other features of our new standard products. Unlike the longer development life cycle for aerospace and military switches, these new standard products, with a more rapid life cycle from development phase to production, lend themselves to a distribution supply chain that can absorb demand fluctuations in these new markets while giving EEC manufacturing operations consistent and increasing production volumes.” About Powell Electronics, Inc Powell Electronics, Inc is a New Jersey based ISO9001:2000, AS9100, qualified distribution supplier of numerous premier connector and switch manufacturers including among others Amphenol, Airborn, EEC/Digitran, Glenair, Honeywell, Litton Winchester, and Tyco's Raychem products. Powell has been in business for over 60 years and is ranked among the worlds largest value added connector and switch distributors. About EMRISE CORPORATION EMRISE Corporation is a multi-national manufacturer of defense, aerospace and industrial 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. 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 June 30, 2007, EMRISE had a total of 304 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 the timing and size of orders that will be filled and shipments that will be made and future growth in our VLP® Rotary Switches business and electronic devices business segment, 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, continued demand for VLP® Rotary Switch products; the Company’s ability to manufacture these products to meet expected demand for existing and future orders and absorb demand fluctuations; the Company’s ability to obtain new business through the worldwide distribution program in the industrial, medical and portable equipment markets; 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 the Company’s Form 10-K for the year ended December 31, 2006 and other Company filings.
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