EMRISE CORPORATION ANNOUNCES OPEN MARKET PURCHASES OF COMPANY STOCK BY INSIDERS
Purchases Made During First Open Window for Insider Buying in More Than 21 Months
DURHAM, NC - October 6, 2010 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that since September 10, 2010, when the window for insiders to buy and sell stock opened, the Company's Chairman and CEO Carmine T. Oliva and other insiders purchased shares of EMRISE common stock in open market purchases.
Oliva said he believes the Company's stock is undervalued and represents an attractive investment opportunity. "These stock purchases also demonstrate our confidence in the future prospects of EMRISE, especially now that the Company has reshaped its operations and management and we are free to focus our full attention on running and growing the business and enhancing stockholder value," Oliva added.
"For more than 21 months, Company insiders have been unable to purchase our stock due to the large number of ongoing material transactions and issues we were constantly working on, including selling four businesses, negotiating with our former principal lender, significantly reducing our debt, cutting costs and reshaping the Company," Oliva said. "Once we completed all those transactions and made all the necessary disclosures, the window opened on September 10 and we began making purchases of EMRISE stock. As a group, insiders purchased an aggregate total of more than 24,000 shares."
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 communications systems is a primary growth driver for the Company's Electronic Devices business segment. 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 throughout the U.S., 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, certain matters discussed in this press release including the future prospects of EMRISE and our ability to grow the business and enhance stockholder value are all forward looking statements within the meaning of the Private Securities Litigation Reform Act. 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, the ability to execute additional purchases, which are subject to broker execution and out of the control of the insiders; the ability to maintain a strong balance sheet; the ability to improve the stock price through outreach programs to existing and potentially new stockholders; the ability to complete strategic initiatives;; the terms, conditions and timing of such transactions and events; unforeseen technical issues; unforeseen changes in customer demand; unforeseen delays in receipt of materials from its vendors; inability of the Company's products to meet customer specifications; and changes in the economic, industry or political climate that may negatively impact demand for EMRISE's future products. 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 June 30, 2010, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.
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