EMRISE CORPORATION PROVIDES OPERATIONAL UPDATE

 Consolidated Results Negatively Impacted by Continued Weakness in U.S.Communications Business, Exchange Rate Fluctuations; Business Units in England and France Remain on Plan  

DURHAM, NC – September 26, 2012…EMRISE CORPORATION (OTCQB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, announced today that due to continued weakness in the performance of its U.S.Communications Equipment business unit, and the significant projected impact of currency exchange rate fluctuations on consolidated revenues, the Company expects 2012 revenues will be similar to 2011 revenues and will not increase by the 11 percent to 14 percent as previously forecasted.  However, its three principal business unitsin England and France continue to grow and perform as expected in the Company’s 2012 operating plan as denominated in their local currencies.   

 EMRISE also reconfirmed that it believes the Company will achieve operating profitability in the thirdand fourth quarters of 2012.  However, dueto the ongoing weakness of the Company’s U.S. Communications Equipment business unit and uncertainties caused by fluctuations in the exchange rate of the U.S.Dollar to the British Pound Sterling and Euro, the Company cannot reconfirm at this time that it will achieve net profits for the 2012 third and fourth quarters or profitability for the full year. 

 Chairman and Chief Executive Officer Carmine T. Oliva said, “We remain optimistic about our future and are firmly committed to completing the execution of our turnaround strategy. We have made significant progress in improving the Company’s performance since the beginning of 2011, and we remain encouraged by the size of our backlog and the continued strong performance of our business units in England and France, particularly with our English subsidiary’s order bookings of in-flight entertainment and connectivity products, and our French subsidiary’ssuccess with early acceptance of our new products in a broad range of markets.”

 EMRISE will comment on its outlook for profitability in the 2012 fourth quarter and for the year when the Company announces its financial results for the third quarter ended September 30, 2012, in November of this year.

About EMRISE Corporation

EMRISE designs,manufactures and markets electronic devices, sub-systems and equipment foraerospace, defense, industrial and communications markets.  EMRISE products perform key functions such aspower supply and power conversion; radio frequency (RF) and microwave signalprocessing; and network access to public and private communicationsnetworks.  The use of its networkproducts in public and private, legacy and latest Ethernet and InternetProtocol (IP) networks is a primary growth driver for the Company'sCommunications Equipment business units. The use of its power supplies, RF and microwave signal processingdevices and subsystems in on-board In-Flight Entertainment and Connectivitysystems is a primary growth driver for the Company's Electronic Devicesbusiness units. EMRISE serves the worldwide base of customers it has built inNorth America, Europe and Asia through operations in the United States, Englandand France.  For more information on EMRISE, go to www.emrise.com.

 EMRISE commonstock trades under the symbol EMRI on OTCQB, the venture marketplace for companies that are current in their reporting with a U.S. regulator. Investors can findReal-Time quotes and market information for EMRISE at www.otcmarkets.com.

Safe HarborStatement under the Private Securities Litigation Reform Act of 1995

The matters discussed in this press release, includingwithout limitation EMRISE’s expectations regarding 2012 revenues and itsability to achieve operating profitability in the third and fourth quarters of2012, as well as the statements regarding net profits for the 2012 third andfourth quarters or profitability for the full year are forward-lookingstatements that involve a number of risks and uncertainties. The actual futureresults of EMRISE Corporation could differ from those statements. Factors thatcould cause or contribute to such differences include, but are not limited to,unforeseen technical issues, unexpected vendor or customer delays, and unexpectedchanges in the economic, political or overall business climate.  The Company alsorefers you to those factors contained in the "Risk Factors" Sectionof EMRISE's Annual Report on Form 10-K for the year ended December 31, 2011, itsQuarterly Reports on Form 10-Q, its Current Reports on Form 8-K filed in recentmonths, and other EMRISE filings with the SEC.

 

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