EMRISE CORPORATION's Subsidiary, Larus Corporation, Qualifies EMRISE's XCEL Circuits Division to Produce Larus' Printed Circuit Boards.

RANCHO CUCAMONGA, Calif. -- Savings from in-house manufacturing is estimated to be $250,000 annually ($0.01 per share)

EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communication equipment, today announced its subsidiary, Larus Corporation, has qualified XCEL Circuits Division, another division of EMRISE CORPORATION, to produce its printed circuit boards (PCBs) for its timing and network access products serving the communications industry. Initial deliveries of PCBs began during the fourth quarter of 2004 and will reach full production in the first quarter of 2005. Management estimates that in-house manufacturing of PCBs will yield an incremental annual savings of $250,000, or $0.01 per share, to EMRISE CORPORATION.

Larry Taillie, president of Larus Corporation, commented, "The strategic integration of EMRISE CORPORATION's operating subsidiaries facilitates these cross-functional synergies. Larus is pleased to provide this growing and significant opportunity to its sister division, XCEL Circuits Division, to expand its reach and provide growth for its business while returning significant cost savings to Larus Corporation. We expect Larus' demand for PCBs to double in 2005 from the current run rate of approximately $250,000. The fact that XCEL Circuits Division is an ISO 9001:2000 certified PCB facility will assure us of the quality that we must have to meet the demanding standards of large telecommunications carriers. The ability of XCEL Circuits to grow with our business and the cost reductions and improved earnings to EMRISE validates our strategic plan and confirms the opportunities management has identified to increase the operating leverage in our manufacturing operations, which should facilitate even higher margins in the future."

William Miller, executive vice president of XET Corporation, XCEL Circuits Division's parent company, commented, "Our XCEL Circuits Division is one of the few suppliers of printed circuit boards in the U.S. certified to ISO 9001:2000, MIL-PRF-55110, and UL standards. In addition, all PCBs are manufactured in accordance with IPC-A-600-C. XCEL Circuits has a history of accomplishment in supplying mil-spec and commercial PCBs to many companies throughout the US. This qualification by Larus will provide tremendous benefits in terms of cost savings and manufacturing leverage to Larus and EMRISE, and represents a significant growth opportunity for an extremely dedicated and professional team at XCEL Circuits."

Carmine T. Oliva, CEO of EMRISE CORPORATION, commented: "As we have previously indicated, the Larus acquisition coupled with our growth strategy in the communications business segment continues to pay dividends in every facet of our organization and business operations. In the coming quarters we plan to realize additional synergies between Larus and other EMRISE communications businesses particularly in Europe and Asia that should return additional profit contributions like the cost benefit of the Larus and XCEL Circuits collaboration. The EMRISE team is dedicated to excellence in all of its operations and businesses, and the fact that these two companies have been able to accomplish this qualification in such a short time is testimony to the professionalism and enthusiasm of the EMRISE team. This cost saving coupled with the recently announced cost savings from the consolidation of our Belix Wound Components operation into our power supply facility in Ashford, England should add 2 cents per share to the 10 cents per share guidance provided for 2005 at our third quarter conference. Revised guidance for 2005 earnings per share now stands at 12 cents per share."

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 Telcom Corporation, 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 November 30, 2004, we had a total of 218 employees in our various subsidiaries and divisions. 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 are forward looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ from those statements. And are subject to but not limited to the ability of EMRISE to realize savings of $250,000 annually due to XCEL Circuits Division supplying of PCBs to Larus Corporation, Larus demand for PCB's doubling, Larus' ability to meet the demanding standards of the larger telecommunications carriers, the ability of XCEL Circuits Division to experience business growth, the growing synergies among EMRISE's business segments, the ability of EMRISE to achieve 12 cents per share in 2005 and those factors contained in the "Risk Factors" Section of the company's Form 10-K filed with the SEC for the year ended December 31, 2003.