EMRISE's Subsidiary, CXR Larus Corporation, Receives a Large Follow-on Order for Telecommunications Test Instruments from a Major U.S. Governmental Systems Contractor

Business Wire, Oct 24, 2006

Order Reflects CXR Larus' Dominance of "T1 and Other Lower Capacity Analog Circuits" Test Instruments for the Governmental Services Sector

RANCHO CUCAMONGA, Calif. -- EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic components and communications equipment, today announced that its subsidiary, CXR Larus Corporation, has received a large $600,000 follow-on order for its flagship Halcyon Universal Test Set, the 704A-NTS1, from Multimax Inc., an international enterprise IT and communications services company. Half of the order is for immediate delivery and the balance is scheduled in 2007. Because of strong T1 digital and lower capacity analog test features incorporated in this product, contractors in the governmental services sector can employ the 704A-NTS1 to service a broader-range of test requirements with a single test instrument.

Larry Taillie, President of CXR Larus Corporation, commented: "The Halcyon 704A-NTS1 is very popular with U.S. governmental agencies, especially the FAA, and outside contractors who service complex governmental networks. Our differentiation can be attributed to fully integrated modules for dozens of service types, and depth of analog features. CXR Larus' competitors must sell a wide range of interchangeable modules to meet our product's functionality, and yet competitors still lack the broad analog test capabilities found in the 704A-NTS1. Modules associated with competing units are often misplaced or unavailable, causing lost productivity while the technician searches for modules or installs them in the instrument. However, with the 704A-NTS1, all modules are integrated and always available, eliminating technician down time." Taillie continued, "We believe that CXR Larus enjoys a competitive edge in the $12 million annual market for test equipment such as ours and we believe that we hold an approximate 30% market share. Multimax is a significant, respected member of the communications service industry and we are pleased to equip them with our test products to serve their governmental service customers."

Carmine T. Oliva, CEO of EMRISE Corporation, commented: "The Halcyon product line is an important brand for EMRISE and has been a mainstay test product for the FAA for many years. We are very pleased with yet another validation of our worth to the marketplace with this sizeable order in the governmental services sector. CXR Larus products have a strong foothold in U.S. governmental agencies. As governmental service contractors continue to ramp up operations, we anticipate positive growth in this market space for our test instrument business."

Eric Nixon, Operations Manager for Multimax, Inc., adds, "The Halcyon 704A-NTS1 can replace several pieces of test equipment, reducing the number of instruments on our trucks and simplifies air travel for our technicians. We are also pleased with the responsiveness of CXR Larus as we integrate the 704A-NTS1 into our growing workforce."

About EMRISE CORPORATION

EMRISE Corporation is a multi-national manufacturer of defense and aerospace electronic components and communications equipment. EMRISE's electronic components group, which consists of EMRISE Electronics Corporation and its international subsidiaries, provides custom power conversion, RF components and subsystems as well as digital and rotary switches to the North American, European and Asian electronic components market. These products are primarily used for defense, aerospace and industrial applications. EMRISE's communications equipment group, consisting of CXR Larus Corporation and its subsidiary CXR Anderson Jacobson, provides network access, satellite timing and synchronization and transmission products as well as 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 September 30, 2006, EMRISE had a total of 300 employees in its various subsidiaries and divisions. Website: www.emrise.com. Listed on NYSE Arca[R] under the ticker symbol: ERI.

About Multimax, Inc.

Multimax is the premier resource for performance-based enterprise IT and communications services and solutions supporting the Department of Defense, federal civilian agencies, and state and local government entities, including, among others: U.S. Navy, U.S. Marine Corps, U.S. Air Force, U.S. Army, Department of Homeland Security, Department of State, Department of Veterans Affairs and Federal Aviation Administration. Based in Herndon, Va., Multimax offers clear value over the full technology lifecycle, with proven expertise and execution meeting the highest professional standards. For more information regarding Multimax, please visit www.multimax.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 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, CXR Larus Corporation's ability to maintain its competitive strength in the test equipment market; the extent to which governmental agencies continue to increase operations resulting in increased growth within this market space for CXR Larus Corporation's products; general 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 EMRISE Corporation's Form 10-K for the year ended December 31, 2005.