EMRISE RECEIVES $1.5 MILLION ORDER FOR ELECTRONIC DEVICES TO BE USED FOR IN-FLIGHT ENTERTAINMENT AND CONNECTIVITY (IFE&C) SYSTEMS
Airline Industry Demand for IFE&C Systems Increasing
DURHAM, NC - February 23, 2011 - EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that it has received a $1.5 million order for electronic devices to be used in the external communications portion of the in-flight entertainment and connectivity (IFE&C) systems installed in a commercial aircraft. The order, which is expected to ship over a three-year period starting in the second half of 2011, was received from a longstanding customer by the Company's Pascall subsidiary in England.
EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said this order is part of an existing multi-million dollar program under which systems of this type are being installed in aircraft of multiple domestic and international air carriers. He also said that the Company expects to receive additional follow-on orders for these systems in the future.
As commercial air carriers seek additional revenue sources and strive to increase passenger loads, they are increasingly committed to providing advanced IFE&C services on both short-haul and long-haul aircraft, whereas in the past they focused on installing IFE&C systems on long-haul aircraft.
"Today, airline industry growth and profitability are being driven by increasing passenger traffic, ancillary revenue sources and a range of new revenue generating services such as IFE&C," Oliva said. "The demand for new sources and types of revenue, the interest in providing IFE&C services on short-haul aircraft, and the recent increases in construction of new, more advanced aircraft, is driving growth in the IFE&C market, which in turn helps increase demand for the IFE&C products provided by EMRISE."
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; radio frequency (RF) and microwave signal processing; and network access and timing and synchronization of communications networks. The use of its network products in network timing and synchronization in edge networks is a primary growth driver for the Company's Communications Equipment business segment. The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board in-flight entertainment and connectivity (IFE&C) systems is a primary growth driver for the Company's Electronic Devices business segment. EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France. 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, certain matters discussed in this press release are forward looking statements within the meaning of the Private Securities Litigation Reform Act including but not limited to the expectation that the order will ship over a three-year period starting in the second half of 2011; additional follow-on orders will be received in the future; airline industry demand for IFE&C systems is increasing; and that increase in demand will help increase demand for the IFE&C products provided by EMRISE. The actual future results of EMRISE could differ from those statements. The Company refers you to those factors contained in the "Risk Factors" Section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2009, as amended, Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
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