EMRISE Completes Relocation of Corporate Headquarters, Reduces Annualized Costs by Additional $1 Million

Move to Existing New Jersey Facility Locates Headquarters Closer to Principal
North American and European Operations and Markets
EATONTOWN, N.J.--(Business Wire)--
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.

EMRISE Corporation
John Donovan
Vice President Finance and Administration
909-392-0420
jdonovan@emrise.com
or
Allen & Caron, Inc
Rene Caron (investors)
Len Hall (media)
949-474-4300
rene@allencaron.com
len@allencaron.com

Copyright Business Wire 2009