EMRISE CORPORATION's New Subsidiary Pascall Electronics Ltd. is Awarded a $1 Million Production Contract

Business Wire, May 18, 2005

RANCHO CUCAMONGA, Calif. -- EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment, today announced that EMRISE's newly acquired subsidiary, Pascall Electronics Ltd., has been awarded a contract to produce approximately $1 million of radio frequency (RF) receiver modules . The RF receiver modules are part of a Transponder Landing System (TLS(R)) designed by Advanced Navigation and Positioning Corporation (ANPC). Deliveries of RF components under the contract are scheduled to occur over the next 12 months.

The TLS(R) has been designed by ANPC to provide a precision approach capability for airports where rough terrain interferes with the radio transmissions produced by conventional navigation aids, or where locating equipment is limited by lack of available airport property. The TLS(R) enables pilots to land aircraft in the more challenging terrains of some airports by means of a steered or curved landing approach in addition to a conventional straight line approach. Pascall has designed the Phase Receiver Module (PRM) for the receiver section of the ground-based sensors used in the TLS(R).

"Establishing close collaboration with our suppliers is a key philosophy of ANPC," commented Jeff Mains, CEO of ANPC, "and this approach has been particularly successful for us over the last three years with Pascall. The focus over the next 12 months on this next generation system will further strengthen the relationship. ANPC's products are utilized in a stringent, safety-conscious marketplace and as such we have to ensure that all our suppliers conform to strict standards of workmanship and quality. We are confident of Pascall's commitment to these standards and look forward to a long and fruitful future with Pascall as one of our key supply partners."

Carmine T. Oliva, chairman, president and CEO of EMRISE, stated: "We believe that a contract award such as this, which carries customer praise for Pascall's RF components and subsystems that are to be used in life critical landing systems such as ANPC's TLS(R), reinforces the wisdom of our decision to acquire Pascall. Pascall not only enhances and expands our existing power supply business bur also represents EMRISE's entry into the complementary business of RF and microwave components and subsystems. With Pascall as an established European base for our entry into the RF business, we are actively pursuing other acquisitions in the RF business space here in the U.S."

About Advanced Navigation & Positioning Corporation

ANPC provides surveillance and guidance solutions for commercial and military aerospace applications worldwide. ANPC's unique technology combines the critical functions of terminal surveillance and precision approach guidance and utilizes legacy airborne systems to provide safe all-weather airport access at minimal operator cost. Established in 1991, ANPC is a privately held company with facilities in Hood River, Ore.; Washington, D.C.; Santa Clara, Calif.; and Beijing.

About EMRISE CORPORATION

EMRISE CORPORATION is a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment. EMRISE's electronic components group, which includes EMRISE Electronics Corporation and its international subsidiaries, provides custom power conversion and RF component and subsystem 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. EMRISE's communications group, consisting of CXR Larus Corporation and CXR-Anderson Jacobson, provides network access and transmission products, communication timing and synchronization products and communications test equipment to the North American, European and Asian communications industry. Founded in 1983, EMRISE operates out of facilities in the United States, England, France and Japan. As of April 30, 2005, EMRISE had a total of 332 employees in its various subsidiaries and divisions. EMRISE's Internet address is 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 pursuit of acquisitions and plans for business expansion, are 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 EMRISE's ability to identify and successfully negotiate, fund and integrate recent and future acquisitions, the ability of EMRISE to complete the ANPC contract consistent with the contract terms, the continuation of Pascall as a supplier to ANPC, market and economic conditions, changes in technology and governmental regulations and policies, competitive products and services, unforeseen technical issues, and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended Dec. 31, 2004, and other public filings.