EMRISE CORPORATION's CXR/Larus Corporation Subsidiary Enters into Supply Agreement with Power & Telephone Supply Co

Business Wire, Feb 3, 2005

RANCHO CUCAMONGA, Calif. -- Agreement Includes Initial Stocking Order for Combination of CXR/Larus and CXR-AJ Products

EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment, today announced that its CXR/Larus Corporation subsidiary has entered into a new agreement with Power and Telephone Supply Co. (Power & Tel), a major independent distributor of products serving the telecommunications and cable TV industries, to distribute all of CXR/Larus' new network timing and other network access products as well as the full line of CXR Anderson Jacobson (CXR-AJ) network access products produced by EMRISE's CXR-AJ subsidiary in Abondant, France. As part of the agreement, Power & Tel has placed an initial stocking order for a combination of CXR/Larus and CXR-AJ network access products for delivery in January 2005.

Larry Taillie, president of CXR/Larus Corporation, commented: "Power & Tel has been a longstanding and valuable distributor of Larus technology, and we are glad to strengthen this relationship following our acquisition by EMRISE CORPORATION. This expansion of their distribution commitment to our new CXR/Larus network timing products and CXR-AJ products will be a significant driver for our business and allow us to reach a much broader end-user customer base in North and South America. Both CXR/Larus timing and transmission products and CXR-AJ's substantial line of network access products are standards in the telecommunication industry, and with the increased visibility that Power & Tel's distribution channel will provide, we believe that these products will become a greater contributor to the growth of CXR/Larus in the coming years. We are pleased to see that Power & Tel recognizes the value of our product offering and has sought to expand its relationship with us, and we look forward to a continued mutually growing and profitable business with Power & Tel in the future."

Carmine T. Oliva, president and chief executive officer of EMRISE CORPORATION, added: "Our timing and network access products from CXR/Larus and CXR-AJ are cornerstones of our projected growth opportunities for the communications segment of EMRISE's business for 2005 and beyond, and the ability of these divisions to cross-sell their solutions across a larger EMRISE customer base will help us to better leverage our sales and distribution channels. With the expanded Power & Tel relationship our ability to drive products into the market has significantly improved. We are pleased with the efforts of CXR/Larus to develop quality distribution channels like Power and Tel's, to bring its products to the market. The new management team at CXR/Larus has done an outstanding job in the short time since our acquisition of Larus Corporation in July 2004, of developing and improving our communications business in North America."

Dan Melore, director of purchasing for Power and Telephone Supply Co., commented: "At Power & Tel, we pride ourselves in providing our customer base with cost-effective product solutions that are of the highest level of quality and dependability. Having had a previous established relationship with Larus Corporation prior to the acquisition by EMRISE, we already understand their prominent standing in the telecommunications market and have confidence in their solutions and customer support. We believe that by expanding our agreement with CXR/Larus and CXR-AJ, we can more effectively meet our customers' timing, transmission, and network access needs. Power & Tel is excited to move forward with such a strong manufacturing partner."

About Power & Telephone Supply Co.

Power & Telephone Supply Co. is a full-line worldwide distributor of telecommunications and cable television material and solutions that has been serving customers since 1963. Their recognized high-level of service can be directly traced to experienced sales, technical and warehousing staffs; a state-of-the-art inventory management and customer service system; and quality manufacturing partners such as CXR/Larus. With headquarters in Memphis, Tenn., Power and Tel has more than 300 employees globally and operates over a half a million square feet of distribution space and 19 locations worldwide. The company shipped to over 60 countries last year. Power & Tel's mission is to be the most cost-effective way to have the right material at the right place at the right time ... every time. For more information call 877-PNT-TEAM or visit www.ptsupply.com.

About EMRISE CORPORATION

EMRISE CORPORATION is a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment. Our electronic components group, which includes XET Corporation and its international subsidiaries, provides custom power conversion products, digital and rotary switches and subsystem assemblies to the North American, European and Asian electronic components market and are primarily used for defense, aerospace and industrial applications. Our communications group, consisting of CXR/Larus Corporation and CXR Anderson Jacobson provides network access and transmission products, communications test instruments and satellite network timing and synchronization systems to the North American, European and Asian communications industry. Founded in 1983, EMRISE CORPORATION operates out of facilities in the United States, England, France and Japan. As of December 31, 2004, we had a total of 215 employees in our various subsidiaries and divisions. www.emrise.com