EMRISE AWARDED $1.1 MILLION CONTRACT FOR POWER SYSTEMS FOR NEW GROUND-BASED, MILITARY DEFENSIVE AID SYSTEMExample of Company's Strategy to Expand Defense, Aerospace BusinessEATONTOWN, NJ - August 10, 2010 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has been awarded a contract valued at approximately $1.1 million to design, develop and manufacture custom power systems for a military application in a new ground-based defensive aid system. The contract was awarded to the Company's U.K.-based subsidiaries by a major international, military systems integrator. The contract includes the design and development of qualification units and the manufacture of production units. Shipment of the qualification units is expected to occur during the fourth quarter of 2010 and the production units are expected to commence shipping in the first quarter of 2011, following completion of system qualification. Future follow-on orders for additional production units are expected. EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said this contract and the potential follow-on orders the Company anticipates for this key military program in future years represent a significant new revenue opportunity for the Company. He said that this business is also an example of the value of the Company's relationships with its world-class customer base and its experience in designing and manufacturing custom power systems and other high quality electronic devices and subsystems for military applications. "EMRISE's success in developing and delivering complex, high quality products for critical military applications and our long list of international customers are key elements of our strategy to continue the expansion of our defense and aerospace business in the U.S. and Europe," Oliva added. "That strategy along with our strategy to expand our communications equipment business organically and through a strategic alliance, both of which we announced on June 15, will be important contributors to the success of our efforts to grow future revenues and to add value for our stockholders." About EMRISE Corporation 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 EMRISE's ability to successfully develop and deliver the products described in this press release, the ability to deliver qualification units in the fourth quarter of 2010, the ability to ship production units in the first quarter of 2011, the ability to obtain future follow-on order for additional production units, the ability for this contract and potential follow-on orders to provide a significant new revenue opportunity, the ability to expand the Company's defense and aerospace business in the U.S. and Europe, the ability to expand the Company's communication equipment business organically and through a strategic alliance, and the ability of either or these strategies to contribute to future revenue growth or to add value for our stockholders may be interpreted as forward looking statements. The actual future results of EMRISE could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical difficulties, unforeseen design, quality or performance issues associated with the products described in this press release, unforeseen delays by EMRISE vendors, within the manufacturing process or by our customer regarding desired delivery dates, economic, political or other factors which may affect the industries in which ERMISE sells products, the ability for EMRISE to successfully grow and/or to attract potential partners for a strategic alliance, and those factors contained in the "Risk Factors" Section of EMRISE's Form 10-K for the year ended December 31, 2010, Form 10-Q for the quarterly period ended March 31, 2010, and other EMRISE filings with the Securities and Exchange Commission.
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