|
EMRISE CORPORATION RECEIVES FIRST PRODUCTION ORDERS FOR SUB-ASSEMBLIES FOR NEW INTERNATIONAL INDUSTRIAL PROGRAM Initial Production Orders Follow Completion of Development and Pre-Production Contract RANCHO CUCAMONGA, CALIFORNIA, May 8, 2008 - EMRISE CORPORATION (NYSE ARCA:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has received initial production orders valued at $250,000 for electronic sub-assemblies from an existing European customer for use in a new harsh-environment industrial application. Initial deliveries are expected to commence in fourth-quarter 2008 with the potential for follow-on orders during the multi-year life of the program. These production orders are for the customer’s Low Rate Initial Production (LRIP) phase of their product introduction and follows an extended product development and marketing program by the customer. The orders were received by the Company’s Xcel Power Systems Ltd. subsidiary (“Xcel”) located in England. EMRISE Chairman, President and Chief Executive Officer Carmine T. Oliva said. “This is one of several key industrial programs we are pursuing that continues our strategy to seek high-margin harsh environment industrial applications that capitalize on our subsidiary’s expertise in developing products for military applications. This strategy is expected to broaden our customer base and limit dependence upon European military customers, so this order from one of our major European industrial customers is an important opportunity. . “These orders are the first of what we expect will be additional orders for this multi-year program,” Oliva added. “Our customer, who is the market leader in their particular harsh-environment, high-reliability industrial products has just completed its development program and is now entering the LRIP phase, which we expect to see accelerate later in 2008 and into 2009 and beyond.” About EMRISE Corporation EMRISE is a multinational designer, manufacturer and marketer of electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic “In-Flight Entertainment and Communications” products and 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. The Company has built a worldwide base of customers including all of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. 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 the production orders referenced in this press release commending in the fourth-quarter of 2008, ability to secure additional follow-on orders, ability to successfully penetrate additional industrial applications, ability to broaden its customer base and/or limit dependence on European military customers, ability to predict acceleration of our customer’s product development cycle are all 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, unforeseen technical issues, unexpected shipping delays caused by suppliers, production related issues, quality issues and/or customer related issues, lack of demand for this particular product and/or future industrial applications of such products, inability for EMRISE to compete within the industrial market, and those factors contained in the “Risk Factors” Section of the Company’s Form 10-K for the year ended December 31, 2007, and other Company filings.
|
