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EMRISE CORPORATION SUBSIDIARY, PASCALL ELECTRONICS LTD., RECEIVES FOLLOW-ON ORDERS IN EXCESS OF $2 MILLION FOR ITS IN-FLIGHT ENTERTAINMENT PRODUCTS RANCHO CUCAMONGA, Calif, – January 15, 2008 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that its subsidiary, Pascall Electronics Ltd., has received additional orders in excess of $2 million for its In-Flight Entertainment (“IFE”) electronic devices from several of the world’s leading suppliers of IFE equipment and systems to the international commercial airline industry. Deliveries are expected to begin in the first quarter of 2008 and be completed by the end of 2008. EMRISE President and Chief Executive, Carmine T. Oliva, said; “These new orders, and the more than $8 million in orders received by EMRISE for In-Flight Entertainment and Communications (“IFE&C”) devices and sub-systems in 2007, are indicative of the Company’s increasing strategic focus and growing position in this market, which is expected to be an important driver of revenue growth in 2008 and beyond. We have a broad, installed base of traditional IFE products with many long standing customers and are pleased that we continue to be successful on these established platforms.” Based on available industry data, the Company believes the newer IFE&C systems market will grow even more substantially over the next five years as single-aisle aircraft, which have historically been largely ignored for newer IFE&C systems, are included for upgrades with IFE&C systems. This trend is evidenced by airlines such as Virgin America, which now offers customers movies, live TV, games, Google Maps and a large selection of MP3 music through an interactive entertainment system at each seatback on all domestic U.S. flights, all on single-aisle aircraft. Other domestic U.S. carriers such as Delta, American and Jet. Blue are all responding accordingly and are testing and installing next generation IFE&C systems. Further, in nearly all cases, most domestic U.S. carriers have announced plans to upgrade their fleets with some form of next-generation IFE&C products. In 2007 EMRISE booked approximately $4 million in the IFE segment, predominantly for discrete IFE device products such as stand-alone power supplies. The company expects to see continued growth in this discrete devices segment, especially since it is entering 2008 already with more than $2 million in new orders. “Perhaps of even greater significance, we booked approximately $4 million in 2007 for newer next-generation sub-system assemblies for enhanced IFE&C products,” Oliva added, “we have attracted new customers especially by addressing this rapidly growing and even larger market segment for In Flight Entertainment & Communications. Accordingly, we feel that our IFE&C sub-system business is truly flourishing as we broaden both our product offering and customer base and as more airlines move toward this technology.” Oliva also commented that “the Company’s latest products provide an enhanced feature sub-system that not only generates much greater revenue per transaction for EMRISE but also provides our customers greater value than if they purchased only discreet IFE devices separately. As a result EMRISE believes revenue will increase even more as the market expands.” Our Pascall Electronics Ltd. subsidiary provides a range of power systems, RF devices and integrated sub-systems for multimedia IFE&C systems for commercial aircraft including products that support “drop-down” entertainment systems as well as personalized seat back IFE&C units. About EMRISE Corporation EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and telecommunications markets. EMRISE products perform key functions such as power supply and power conversion; digital and rotary switching; RF and microwave transmission; network access and network timing and synchronization of communications networks; including voice, data and video. Primary growth driver applications for EMRISE products include commercial avionic “In-Flight Entertainment and Communications” products and broad based communications “Network Timing and Synchronization” equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France, and Japan. For more information go to www.emrise.com. 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, EMRISE’s ability to deliver new or existing IFE orders in the first quarter or throughout 2008, ability to grow its market position in the new IFE&C segment, ability to grow product sales for either discrete or next generation IFE&C products, ability to successfully provide enhanced features or expanded product offerings on current or future IFE&C products, and its optimistic outlook for IFE&C products are all forward-looking statements that involve a number of risks and uncertainties. Actual future events could differ from those statements due to uncertainties such as unforeseen technical difficulties in manufacturing or installing such products by EMRISE, its vendors or its customers, failure on the part of EMRISE’s customers to accept delivery of such products according to expected timelines, failure of the commercial airline industry to accept new IFE&C technology or failure to implement such technology as rapidly as expected, failure of commercial airline industry to perceive higher value in enhanced features and sub-systems provided by EMRISE, failure of commercial carriers to upgrade their fleets as expected or to make such upgrades at a slower pace than is expected, lack of profitability, the inability for the Company to successfully grow either its IFE&C businesses, and other risks as contained in the Company’s public statements and its periodic reports and other filings with the Securities and Exchange Commission.
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