EMRISE CORPORATION PROMOTES GRAHAM JEFFERIES TO PRESIDENT; JOHN DONOVAN TO SENIOR VP, CHIEF FINANCIAL OFFICER

Key Step in Implementation of Program to Build Next Generation Team of Company Leaders

EATONTOWN, NJ – July 07, 2009 – EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has promoted veteran operating executive Graham Jefferies to President and Chief Operating Officer, and veteran financial executive John Donovan to Senior Vice President and Chief Financial Officer, effective July 6, 2009. Both men will continue to report directly to Carmine T. Oliva who remains Chairman and Chief Executive Officer, and who turns over his title and role of President to Jefferies.

“Both of these men have done exceptional jobs in helping shape and implement the strategic direction of EMRISE,” Oliva said. “Of course these promotions recognize Graham’s and John’s numerous contributions to the Company and reward their many accomplishments during their tenure with EMRISE. More importantly, however, these promotions are a key step in the Company’s plan to build the next generation executive management team to lead the Company.

“As we look ahead to the future growth of the Company and step up our efforts to further enhance shareholder value,” Oliva added, “Graham and John will play increasingly important roles in developing and executing our corporate strategy as well as leading the due diligence activities in evaluating and reviewing any possible future acquisitions, mergers and alliance transactions. In addition, Graham and John will both become more active participants in our day-to-day interface with the investment community.” In his new role as President, Jefferies will be responsible for the corporate operating plan, which previously was managed by Oliva. In addition, he will also assume responsibility for expanding the Company’s investor relations program into the U.K. and continental Europe.

Jefferies, 52, has moved steadily up the executive management ladder assuming increasing levels of responsibility since joining EMRISE in 1992, most recently serving as Executive Vice President and Chief Operating Officer. He had a leadership role in the acquisition and integration of Advanced Control Components, Inc. (ACC), and he led the development and implementation of the operating unit realignment and cost reduction program implemented in the second fiscal quarter of 2009, which is expected to result in approximately $2 million in annualized cost savings.

Jefferies’ will continue to serve as COO, and as such will continue managing the day-to-day, unit-level operations of EMRISE focusing on substantially increasing revenue and profit. He will also continue to participate actively in developing and implementing the Company’s strategic operating plans at all of the Company’s operating units. Jefferies will also continue to be responsible for EMRISE’s three U.S.-based subsidiaries, two UK-based subsidiaries and the subsidiary based in France.

“In the past five years, Graham has gained important experience in each of his roles and proven his value as a leader,” Oliva said. “In his new role, Graham will be participating actively in the development, formulation and execution of our strategic direction and his experience in mergers, acquisitions and strategic alliances will be particularly useful as we focus on expanding EMRISE and increasing shareholder value.

Starting in March 1992, Jefferies was Managing Director of EMRISE Electronics Ltd and in September 1996, became Managing Director of XCEL Power Systems Ltd, part of the EMRISE Electronic Devices Business segment. He became Managing Director of Belix Power Conversions Ltd., Belix Wound Components Ltd and Belix Company Ltd. following the acquisition of those companies by EMRISE in April 2000. He was appointed EMRISE Executive Vice President and Chief Operating Officer of the EMRISE Telecommunications Group in October 1999 and EMRISE Chief Operating Officer in January 2005.

Jefferies earned a bachelor’s degree in engineering from Leicester University in England.

Donovan, 43, has been Vice President Finance and Administration, Secretary and Treasurer of EMRISE since May 2007. Continuing to report directly to Donovan will be all finance, administration and treasury functions of EMRISE, and his responsibilities will continue to include managing the legal and regulatory affairs of the Company including Sarbanes-Oxley compliance and filings with the Securities and Exchange Commission.

“John has proven to be a tremendously valued member of our senior executive team at this very important time for EMRISE,” Oliva said. “Throughout his two-year tenure with EMRISE, John has taken on increasing levels of responsibility and he has proven his ability each step of the way. He has participated in complex debt financing transactions and handled the pre-acquisition financial due diligence and post-acquisition financial integration of ACC. John was also a key participant in the successful sale of our Digitran switch business, and he has been instrumental in helping implement corporate cost reductions programs during the first half of 2009 which the company expects will reduce our corporate annualized G&A cost by approximately $1 million and to relocate our corporate headquarters from Southern California to an existing and less costly location in New Jersey, including the transition of corporate IT and HR services from internal to outsourced providers. John also handles our relationships with our banks and lenders.”

Prior to joining EMRISE, Donovan spent nearly three years as a management consultant at Woodland Hills, CA-based DLC Inc., a financial project solutions provider, where he performed various financial and accounting functions for clients including publicly-traded AeroVironment Inc., his principal client. From March 2002 to October 2004, Donovan served as Chief Financial Officer of Ontario, CA-based Chem Lab Products Inc., a private manufacturer of chemicals. Prior to that, he served in a variety of financial management roles at both public and private companies. Donovan started his career as an auditor at Price Waterhouse (a former affiliate of Price Waterhouse Coopers)

Donovan earned a bachelor’s degree in accounting and a master of accountancy degree in audit, with an emphasis in ERP information systems, from Brigham Young University in Provo, UT. He is also a certified public accountant.

Photos are available upon request.

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 signal processing; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include RF devices for RCIED jamming systems and Edge Network Timing and Synchronization equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England and France. The Company has built a worldwide base of customers including a majority 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 expectation that these promotions are a key step in its plan to build the next generation of executive management team to lead the Company, that Graham Jefferies and John Donovan will play increasingly important roles in developing and executing corporate strategy as well as leading the due diligence activities in evaluating and reviewing any possible future acquisitions, mergers and alliance transactions, that Jefferies and Donovan will both become more active participants in day-to-day interface with the investment community, that Jefferies will be able to focus on or will be successful in substantially increasing revenue and profit, that Jefferies will be able to successfully expand the Company’s investor relations program into the U.K. and continental Europe, that Jefferies will be able to focus on expanding EMRISE and increasing shareholder value, that the Company’s operating unit realignment and cost reduction program implemented in Q2 2009 will result in approximately $2 million in annualized cost savings, or that the Company’s corporate cost reductions programs implemented during the first half of 2009 will reduce its corporate annualized G&A cost by approximately $1 million. Factors that could cause or contribute to such differences include, but are not limited to, EMRISE’s ability achieve profitability, ability to finance it’s current and future strategic plans, ability to attract and retain the appropriate talent to successfully implement it’s strategic plans, the ability to identify, finance and/or integrate future acquisitions, mergers and alliance targets, the ability of Jefferies and/or Donovan to focus on investment related activities and/or strategic activities due to conflicting priorities, failure to achieve the expected savings from its previously announced business unit or corporate restructuring programs in the amount or time frames indicated, economic, political and/or other external factors which may have a negative impact on EMRISE and/or it’s ability to implement certain strategic objectives and those factors contained in the “Risk Factors” section of EMRISE’s Form 10-K’s, Form 10-Q’s, and other EMRISE filings with the Securities and Exchange Commission.

 

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