EMRISE COMPLETES RELOCATION OF CORPORATE HEADQUARTERS, REDUCES ANNUALIZED COSTS BY ADDITIONAL $1 MILLIONMove to Existing New Jersey Facility Locates Headquarters Closer to Principal North American and European Operations and MarketsEATONTOWN, NJ – May 19, 2009 – EMRISE CORPORATION (NYSE Arca: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has completed the relocation of its corporate headquarters from its prior location in Rancho Cucamonga, CA to the existing facilities of its largest domestic subsidiary located in Eatontown which will result in additional annualized cost savings of approximately $1 million and facilitate improvements in operating efficiency. EMRISE will remain a Delaware corporation. EMRISE Chairman, President and Chief Executive Officer, Carmine T. Oliva said the annual savings from moving the corporate headquarters to available space at its Advanced Control Components, Inc., (ACC), subsidiary in Eatontown will have a very positive impact on profitability, especially since the savings are in addition to the previously announced $2 million of anticipated annualized savings resulting from the streamlining of the Company’s business unit operations that was initiated in the first and second quarters of this year. “The cost savings associated with relocating our corporate headquarters will start immediately and ramp up through the end of this year’s third quarter,” Oliva added. “By then we will have incurred the remaining costs of closing the Rancho Cucamonga facility and relocating our headquarters, and we anticipate that by the fourth quarter of this year, approximately $250,000 in quarterly savings will be fully achieved. With the combination of these quarterly savings and the $500,000 per quarter savings at the business unit level we announced in late April, we will exit the fourth quarter of this year having reduced our total annualized operating expenses by approximately $3 million. “The aggregate total of these expense reductions will increase our profitability and cash flow in this and succeeding years and, over time, substantially improve our ability to further reduce our long term debt,” Oliva said. EMRISE management believes there are a number of compelling reasons to relocate the Company’s headquarters to its ACC facilities in New Jersey. These include the fact that following the sale of its two non-core Southern California-based businesses, the latest being the sale of the Digitran switch business in March, there were no operating business units left in Southern California. And, in addition to the substantial direct cost savings associated with the relocation, the move puts the Company’s headquarters in a location more central to the majority of its domestic and international operations and nearer to the decision centers of the Company’s principal markets in North America and Europe, which should greatly improve the efficiency and reduce the expense of supporting its business unit operations. The direct cost savings of the relocation include the elimination of a stand-alone corporate office and its associated lease and other facility expenses, the reduction of corporate level staff and administrative headcount and the outsourcing of the Company’s human resources and information technology functions, to third party service providers. The contact information for the Company’s new headquarters is: EMRISE Corporation 611 Industrial Way Eatontown, NJ 07724 Telephone: (732) 389-0355 Fax: (732) 460-0214 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 RF devices for RCIED 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 expectation to achieve $1 million in annualized cost savings facilitate improvements in operating efficiency as a result of the relocation of its corporate headquarters, ability for the relocation to have a very positive impact on profitability, the ability for such savings to start immediately and ramp up through the end of this year’s third quarter, the ability to fully achieve approximately $250,000 in quarterly savings by the fourth quarter of this year, ability to exit the fourth quarter of this year having reduced total annualized operating expenses by approximately $3 million, the ability for the expected savings to increase profitability and/or cash flow in this and succeeding years, the ability over time, to substantially improve the company’s ability to further reduce long term debt, and the expectation that the relocation will greatly improve the efficiency and reduce the expense of supporting its business unit operations, are all forward-looking statements that involve a number of risks and uncertainties. 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, failure to successfully achieve the cost savings described including failure to achieve the amount of savings and/or to achieve such savings in the time frames described, higher than expected employee termination costs and/or facility closure costs, worsening of general economic conditions; and those factors contained in the “Risk Factors” Section of EMRISE’s most recently filed Form 10-K, and other EMRISE filings with the Securities and Exchange Commission.
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