EMRISE Receives $2.1 Million Contract to Manufacture Custom Power Systems for Military Aviation Program

EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense, aerospace and industrial electronic devices and communications equipment, today announced that it has been awarded a contract valued at approximately $2.1 million (£1.3 million) to manufacture custom power systems to be used in an existing military aviation program. The contract was awarded to the Company’s U.K. subsidiaries by a major military systems integrator, which is a longstanding EMRISE customer.

Shipments of the custom power systems are expected to begin in early 2012 and be completed over a four-year period. Future follow-on orders for additional production systems are expected.

EMRISE Chairman and Chief Executive Officer Carmine T. Oliva said this multi-million dollar contract is indicative of the increasing number of military program opportunities the Company is pursuing. Oliva also noted that this contract brings the total value of contracts and orders announced in a little more than 30 days for products supplied by both its Electronic Devices and Communications equipment business units to nearly $8 million, which further strengthens EMRISE’s growing backlog.

“We are very encouraged by the order trends for commercial and military products we are experiencing in both our Electronic Devices and Communications Equipment business units,” Oliva added. “We believe our overall backlog from continuing operations for the 2010 year end reached record levels and that it will grow in 2011. Going forward, we believe we will continue to see an increase in the rate of new development contracts and follow-on orders for new and existing military programs, commercial power systems, inflight entertainment and connectivity systems and a range of communications equipment including network access, and timing and synchronization systems.”

EMRISE has longstanding relationships with its large international customer base and a track record of successfully delivering to its customers high quality, custom and proprietary, off-the-shelf communications equipment and electronic devices and subsystems for a broad range of demanding military and commercial applications, all of which the Company believes will help drive increased business going forward.

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 expectations that shipments of the custom power systems will begin in early 2012 and be completed over a four-year period; follow-on production orders will be received in the future; the Company’s overall backlog from continuing operations for the 2010 year end reached record levels and it will continue to grow in 2011; there will be a continuing increase in the rate of new development contracts and follow-on orders it receives; or that the Company’s longstanding customer relationships and successful track record will help drive increased business going forward. 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.