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Last updated on April 18, 2014 at 6:43 EDT

EMRISE Corporation Receives Initial Production Release Under Existing Three-Year $800,000 US Navy Contract

July 16, 2008

EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has received the initial production release and plans immediate shipment of the first $300,000 of its Halcyon telecommunications test equipment under the terms of a previously announced $800,000 supply contract with the U.S. Department of the Navy. The three-year agreement calls for the company’s San Jose, CA-based CXR Larus subsidiary to provide the Navy the company’s full line of Halcyon handheld field test equipment to be used in a variety of telecommunications testing applications.

In addition to the Navy, other government agencies including the Department of Homeland Security and the Federal Aviation Administration (FAA), among others, can also purchase Halcyon test equipment under the terms of the Navy’s agreement. For example, CXR Larus is also actively engaged with the FAA to produce a derivative testing unit for a specialized testing application based on the unit developed under Navy contract.

EMRISE President and Chief Executive Carmine T. Oliva said that the company expects to receive orders for the new derivative testing units from the FAA in the very near future, and that the new FAA program could have a contract value in excess of $800,000.

“Even though test instruments are a non-core business for EMRISE, the Navy contract provides important and ongoing validation of the capability of the Halcyon line of test equipment,” Oliva added. “To be able to meet the exacting special testing standards of the Navy, other armed forces and the FAA with our Halcyon test equipment demonstrates the commitment of our team to understand and engineer customized testing products for the extensive T1 copper telecommunications networks deployed by the U.S. government.

“The pending award from the FAA for the derivative Navy product is part of the expected upside from the Navy contract,” Oliva said. “Because the Halcyon product has been the tester of choice for the multi-billion dollar FAA commercial air tower communications equipment upgrade program for the past several years, the Navy award and pending FAA product are the natural progression of the government’s continued use of the Halcyon line.”

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; RF and microwave transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic “In-Flight Entertainment and Communications” products and communications “Network Timing and Synchronization” equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France and Japan. The Company has built a worldwide base of customers including all of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in 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, the matters discussed in this press release, including without limitation EMRISE’s ability to immediately ship $300,000 of Halcyon test equipment, ability to receive additional test equipment orders from the FAA or any other government agencies, ability to produce a derivative testing unit for the FAA, ability to meet expectations of the Navy or any other government agency, ability to benefit from any upside as a result of the existing Navy contract, and the ability to predict the government’s continued use or reliance on the Halcyon line 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, changes or delays in the Navy’s expected demand for product, decisions by the Navy, FAA or other government agencies to postpone or to not purchase additional test equipment, quality issues and/or unforeseen difficulties in developing a derivative test unit that satisfies the technical requirements of the FAA and/or the inability of EMRISE to deliver such a product at a price that is acceptable to the FAA, decision by the Navy, FAA or any other government agency to discontinue the Halcyon test line and/or decisions by such agencies to upgrade existing networks and associated test equipment, and those factors contained in the “Risk Factors” Section of the Company’s Form 10-K for the year ended December 31, 2007, and other Company filings.