EMRISE CORPORATION APPOINTS BDO SEIDMAN LLP TO BE NEW AUDITORS

RANCHO CUCAMONGA, California – May 5, 2009 - EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has appointed BDO Seidman, LLP as its independent registered public accountants to audit the Company’s consolidated financial statements, replacing Hein & Associates LLP. The change in auditors was recommended by the Company’s audit committee and was effective April 30, 2009.

EMRISE Chairman, President and Chief Executive Officer Carmine T. Oliva said BDO audit services will commence immediately with the review of the Company’s quarterly consolidated financial statements and Form 10-Q for the first quarter ended March 31, 2009, which EMRISE expects to file with the Securities and Exchange Commission on or before May 15, 2009.

“We have had a positive and productive working relationship with Hein & Associates for the last three years and we appreciate their support,” Oliva added. “However, we selected BDO Seidman because we believe they have the resources, experience and in-place international presence to provide the Company with the global auditing and tax services we require on a more cost-effective and timely basis.”

There were no disagreements between the Company and Hein & Associates during the fiscal years ended December 31, 2008 and 2007 and the subsequent interim period through April 30, 2009, on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to the satisfaction of its previous auditors, would have caused the previous auditors to make reference to the matter in connection with its reports on the Company’s financial statements.

“The decision to seek a new auditing firm was made several months ago and was contingent upon the successful sale of the Company’s non-core Digitran division assets,” Oliva said. “With the sale being completed in March and the filing of our 2008 Form 10-K in April, we believe this is the right time to make this change, especially since beginning this year, we are also subject to additional audit requirements for Sarbanes-Oxley.”

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 signal processing; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include “Radio Frequency Devices for Radio-Controlled Improvised Explosive Device Jamming Systems” and “Edge Network Timing and Synchronization” equipment. 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 including a majority 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 obtain audit and tax services on a more cost-effective basis, and ability to file its Form 10-Q for the first quarter ended March 31, 2009 on or before May 15, 2009, 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 delays in reporting its consolidated financials results, unforeseen accounting or audit issues, other factors that may impact the cost and/or synergy of future reviews and audits and those factors contained in the “Risk Factors” Section of the Company’s Form 10-K for the year ended December 31, 2008, and other Company filings.

 

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