EMRISE CORPORATION Announces Results of Annual Stockholders' Meeting

Business Wire,  June 25, 2008  

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RANCHO CUCAMONGA, Calif. -- EMRISE CORPORATION (NYSE ARCA: ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it held its annual meeting of stockholders on June 24, 2008, at its corporate offices in Rancho Cucamonga, California. A quorum of stockholders was present in person or by proxy.

The Company's stockholders approved the proposal to elect EMRISE President and Chief Executive Officer, Carmine T. Oliva, and Richard E. Mahmarian to serve three-year terms as Class III directors. The stockholders also approved the proposal to ratify the appointment of the Company's current independent registered public accountants, Hein & Associates LLP, to audit the Company's consolidated financial statements for 2008.

In his prepared remarks, Oliva reviewed the Company's financial results for 2007 and discussed management's plan for growth. He noted that organic growth in 2007 came from both the Company's core electronic devices and communications businesses driven by certain new products introduced during 2007 as primary growth drivers. He also pointed out that there were attractive opportunities for future growth in the U.S. military market for the Company's core base electronic devices.

Oliva then discussed management's strategy to focus on supplementing organic growth in the Company's core businesses by acquiring businesses that complement the Company's core strengths. He also noted that as part of the Company's overall strategy, the Company may sell certain businesses and/or product lines that are not part of the Company's overall core business. The sale of such businesses and/or product lines would streamline operations, would strengthen the Company's focus on core growth and would help to reduce the debt and interest expense related to the acquisition of Advanced Control Components. He pointed out that less debt and lower interest expense would reduce the Company's financial risk, would provide a much stronger balance sheet and would improve liquidity.

He mentioned key accomplishments in 2007, including recent successes with new products, the addition of new large customers for each of the Company's primary growth drivers, and the closing of a $23 million debt facility to support growth and continued development of new growth drivers, and to finance the acquisition of Advanced Control Components that was previously announced on May 28, 2008.

Oliva also announced that the Company would seek approval of its stockholders to effect a reverse split of its common stock at a special meeting of stockholders to be held late in the third quarter or early in the fourth quarter of this year and that the reverse stock split would be implemented only if the Company was successful in closing its acquisition of Advanced Control Components. "The purpose of the reverse stock split is to maintain the Company's listing on the NYSE Arca exchange and to reduce the total number of shares outstanding to a level more appropriate for a company our size," Oliva added. Oliva also stated the Company's belief that the reverse stock spilt would clear up concerns about delisting that have plagued the Company for the last seven months and potentially reduce any related pressure there may be on the Company's stock price due to the possibility of delisting and then trading of the common stock on the OTC Bulletin Board.

Oliva noted that the specific magnitude of the reverse split would depend upon market conditions, the current stock price at the time of the effectiveness of the reverse split and other factors. In that regard, he also noted that the Company intends to minimize the magnitude of the reverse split while achieving the objectives of the reverse split, including maintaining compliance with NYSE Arca continued listing requirements. Oliva stated that the Company had consulted with NYSE Arca regarding the reverse split and had obtained NYSE Arca's support. Finally, Oliva noted that the Company expects to maintain its current NYSE Arca listing throughout the period of time necessary to close the acquisition of Advanced Control Components and to obtain stockholder approval of the reverse stock split, subject to continuing normal NYSE Arca monitoring procedures.

A replay of the meeting, which was webcast live and accessible by teleconference, is available at www.emrise.com or www.investorcalendar.com/IC/CEPage.asp?ID=130830 for 90 days. Also, for 90 days after the conference call, a replay will be available by dialing the toll-free number 877-660-6853 and for international callers 201-612-7415. The conference ID number of "288062" and Account number of "286" should be used to access the recording by phone.

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 transmission; digital and rotary switching; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include commercial avionic "In-Flight Entertainment and Communications" products and communications "Network Timing and Synchronization" equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England, France and Japan. The Company has built a worldwide base of customers including all 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