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EMRISE CORPORATION FEATURED PROMINENTLY IN ECONOMIST INTELLIGENCE UNIT MIDDLE MARKET OUTLOOK REPORT CEO CARMINE OLIVA OUTLINES VISION FOR THE FUTURE RANCHO CUCAMONGA, CALIFORNIA, - August 13, 2007 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced Carmine T. Oliva, Chairman, President and CEO of EMRISE Corporation, was interviewed and quoted in a recent report from the Economist Intelligence Unit (EIU) looking at the outlook for Middle Market companies “the key drivers of the US economy’s growth.” The report was produced in association with CIT Group Inc. (NYSE: CIT), a leading global provider of commercial and consumer financing, and can be accessed here: http://middlemarket.cit.com Excerpts from the report that include comments from Mr. Oliva follow: Our research indicates that, at least for the smaller companies in this sector, a no-growth/slow growth approach is out of the question. Carmine Oliva, chairman and CEO of EMRISE Corp, a publicly held maker of aerospace and defense devices, comments. “We believe that remaining as a US $55 million (in revenue) company is not an option for us. Our minimum objective is to get to US $100 million and then we’ll probably want to go higher, into the US $200 million to US $250 million range. At that level, you have the strength and the capabilities to truly serve the global market, which is our ultimate ambition.” …New geographical markets may not yet be the top priority for the middle market sector, but these companies cannot escape the impact of globalization. For large US manufacturers, foreign competition - especially from Asia - has long been a worry and this unease is trickling down to smaller firms. As Mr. Oliva at EMRISE puts it: . “Increasingly, there are no local markets for aerospace and defense. All markets are becoming global.” …“It is not the absolute existence of foreign competition that presents us with a potential obstacle,” says Mr. Oliva. “It is the ability to prove that you can serve your customer effectively, not only here in the US but on an international scale. We have overcome that problem by establishing subsidiaries in England, France and Japan; without those, some of our customers would be lost.” …“The advantage of being public is that financial information about your company is readily available. So, in our case, a large customer like Raytheon or Lockheed Martin can quickly assess our financial strength.” However, Mr. Oliva also underscores what he terms “the enormous cost of public status, especially for companies with revenue of around US $50 million or less, or even for companies at US $150 million. Compliance with Sarbanes-Oxley legislation, directors and officer’s liability (D&O) insurance, auditing fees and tighter financial controls are all necessary cost burdens.” “As I said earlier, it makes no sense to remain public at US $55 million in revenue in the face of such costs without prospects for strong growth.” …Yet, cash flow and profitability are the key determinants for both public and private companies in raising finance. “We have an obvious advantage in raising money as a public company, but without cash flow and profits that would not be the case,” says Mr. Oliva of EMRISE, adding, “It also helps not to be overleveraged to begin with.” 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 July 31, 2007, EMRISE had a total of 303 employees in its various subsidiaries and divisions. Website: www.emriseEMRISE.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 it will achieve $55 million in revenue in 2007, 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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