EMRISE CORPORATION RECEIVES MORE THAN $1.2 MILLION IN ADDITIONAL ORDERS FOR IN-FLIGHTENTERTAINMENT PRODUCTS

Year- to-Date IFE&C Orders Up 54% from Comparable 2007 Period

RANCHO CUCAMONGA, CALIFORNIA, July 2, 2008 - EMRISE CORPORATION (NYSE ARCA:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced it has received more than $1.2 million in additional new orders from a long-standing U.S. customer for electronic devices to be used in in-flight entertainment (IFE) systems.

EMRISE President and Chief Executive Officer Carmine T. Oliva said that sales of its traditional IFE products are showing strength and the Company expects solid revenue increases from this business in 2008.

. “These new orders now bring our total orders for IFE products to $3.4 million in June and are indicative of the continuing strength in demand for traditional IFE electronic devices from established customers,” Oliva said. “With these additional new orders, the total mid-year 2008 orders for both traditional and new multi-media In-Flight Entertainment and Communications (“IFE&C”) products for new customers now total $7.7 million, which is 54 percent ahead of mid-year 2007 orders of $5.0 million.”

There are two key factors EMRISE management believes will help drive the continuing revenue increases the Company is expecting in its IFE&C business: 1) growth in the annual number of commercial aircraft projected to be equipped with new higher value IFE&C systems, which based on available industry data the Company estimates could reach more than 700 aircraft per year by the end of 2010, up almost 36 percent from 2007; and more significantly 2) growth in the average value of the orders EMRISE receives for electronic devices and subsystems that go into each IFE&C system for not only new aircraft but, more importantly, into the much larger base of potential retrofit aircraft.

The Company’s Pascall Electronics Ltd. (“Pascall”) subsidiary located in England received the follow-on orders. Pascall provides a range of power systems, RF devices and integrated subsystems for traditional IFE and new generation multimedia IFE&C systems including, among other services, satellite video, live TV, and Global Systems for Mobil Communications (“GSM”) for legacy, retrofit and new-build applications.

“These orders are representative of the orders we continue to receive for traditional IFE products, as evidenced by the $3.4 million in IFE orders we received in the month of June.” Oliva added, “These traditional orders are now being complimented by sales of our electronic devices and subsystems that are integrated into newer IFE&C systems.”

About EMRISE Corporation

EMRISE designs, manufactures and markets 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 continue to deliver orders for new or existing IFE products, ability to count on IFE products as key growth drivers, ability to record solids revenue increases from IFE business in 2008 and beyond, ability to experience continuing strength in demand for traditional IFE electronic devices, ability to continue to exceed prior year booking rates, ability to predict growth in the annual number of commercial aircraft to be equipped with new higher value IFE&C systems, ability to predict growth in the average value of orders that EMRISE receives for electronic devices and subsystems that go into each IFE&C system, ability to predict an increase in the number of potential retrofit aircraft that will be outfitted with higher value IFE&C systems, and the ability to continue to receive new orders for IFE systems in 2008 at a higher rate than in 2007 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, changes in demand for IFE or IFE&C products, economic difficulties, particularly within but not limited to the airline industry, changes in customer time schedules for delivery of IFE or IFE&C products, competitive pressures, fluctuations in the exchange rate between the dollar and British pound, and unforeseen quality, manufacturing or performance issues associated with IFE or IFE&C products, 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.

 

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