TWO MAJOR INTERNATIONAL COMPANIES QUALIFY EMRISE'S NEW CIP-ALL
PSEUDO-WIRE NETWORK ACCESS PRODUCTS

Company's Recently Launched CIP-ALL Range of Products
Connects Legacy Systems and Equipment to Ethernet, IP Networks

DURHAM, NC - June 26, 2012...EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, announced today that its recently launched CIP-ALL product line has been qualified by a dominant European telecommunication company and a major European based international utility company. The Company's new, versatile network access product range was designed to connect legacy communications systems and equipment to latest Ethernet and Internet Protocol (IP) networks.

These two companies have tested, qualified and selected the EMRISE CIP-ALL range of products and have already begun to purchase products for their enterprise network applications, noted EMRISE Chairman and Chief Executive Officer Carmine T. Oliva. The rapid decommissioning of leased line and other analog circuits by telephone and other private communications network companies, such as utilities, has created the need for pseudo-wire products such as the CIP-ALL, which extend the life of legacy systems at a time when capital budgets are constrained, Oliva added.

"These qualifications by one of the world's largest telecommunications companies and electric utility companies represent the achievement of a very important milestone for our communications equipment business," Oliva said. "Our new products can now be purchased and installed by the field operations of these two companies for inclusion in their networks. The credibility we receive from these qualifications should also help us get our CIP-ALL products qualified by other companies around the world. We believe this new product range has the potential to become yet another important driver of revenue for EMRISE."

EMRISE management also believes that the fast turnaround time for the qualification and acceptance of the CIP-ALL product range and the initial purchases by these prominent telecommunications and utility companies underscores the potential for a large market for these products that should include opportunities in Europe, North America and Asia.

The new CIP-ALL product range, which was launched in late May of this year, was developed by the Company's CXR-AJ subsidiary in France.

About CIP-ALL
CIP-ALL supports a complete range of industry standard interfaces, providing pseudo-wire emulation over Ethernet-IP using fiber or copper media. The product range provides for full integration into global network management systems and QoS (Quality of Service) management systems. The product range is versatile with a wide variety of interfaces from analog telephony to data and video. In telecommunications and computer networking, a pseudo-wire is an emulation of a point-to-point connection over a packet-switching network.

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 to public and private communications networks. The use of its network products in public and private, legacy and latest Ethernet and Internet Protocol (IP) 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 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. EMRISE is a publicly traded company whose common stock trades on the OTCBB under the symbol EMRI. 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 belief that the rapid decommissioning of leased line and other analog circuits by telephone companies and other private communications companies has created the need for products like the CIP-ALL; the credibility the Company receives from these qualifications will also help it get its CIP-ALL products qualified with other telecommunications and utility companies around the world; this new product range has the potential to become another important driver of revenue for EMRISE; and that the fast turnaround time for the qualification and acceptance of the CIP-ALL product range and the initial purchases by these prominent telecommunications and utility companies underscore the large potential market for these products that should include opportunities in Europe, North America and Asia 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 vendor or customer delays, and unexpected changes in the economic, political or overall business climate. The Company also 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, 2011, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.

 

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