EMRISE CORPORATION SUBSIDIARY XCEL POWER SYSTEMS LTD. RECEIVES ADDITIONAL ORDERS FOR TRANCHE 2 EUROFIGHTER TYPHOON AIRCRAFT

New Orders Bring Tranche 2 Build Total to $9 Million

RANCHO CUCAMONGA, CALIFORNIA, -August 15, 2007- EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that its U.K. based power supply company Xcel Power Systems Ltd. has received an additional $600,000 in orders for power supplies to upgrade an avionic system for the Eurofighter Typhoon, Tranche 2 aircraft. This new order, which will ship over the next twelve months, brings Tranche 2 orders for approximately 225 aircraft to a total of $9 million. Our remaining current backlog of Tranche 2 orders with this new order is approximately $6 million. This backlog is scheduled to ship half in 2007 and half in 2008.

Commenting on the new orders, Carmine T. Oliva, Chairman, President and CEO, stated: “The Eurofighter Typhoon Aircraft Tranche 2 build is the largest single military program EMRISE has ever been awarded. It doubled our prior Tranche 1 program award for 125 aircraft that was nearly $4.5 million. We are pleased to be part of various continuing avionic upgrade and spares programs which offer us the opportunity to expand our revenue per aircraft not only on the remaining Tranche 2 aircraft yet to be built, but it affords us additional revenue opportunities for retrofit to those Tranche 2 aircraft already built. Above all we are very excited about the size of the Tranche 3 opportunity yet to be awarded.”

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 commercial avionics 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; the ability of EMRISE Corporation to produce and deliver our existing Tranche 2 backlog within the expected time periods described, the ability to obtain new business, specifically for Tranche 3, or to build upon existing business; 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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