EMRISE CORPORATION's XCEL Corporation Ltd Subsidiary Has Completed the Consolidation of Its Two UK Facilities into One Facility.

RANCHO CUCAMONGA, Calif. -- Annual Cost Savings Will Be in Excess of $250,000 Per Year or $0.01 Per Fully Diluted Share

EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment, today announced that its subsidiary, XCEL Corporation Ltd, has completed the consolidation of its two UK facilities into a single facility at its Ashford, Kent headquarters.

The company has moved its electronic wound components operation, Belix Wound Components Ltd., from its existing Wales facility into a newly refurbished facility within the existing Ashford, Kent operation. The wound components operation produces components for integration into the Company's power supply products and also for outside trade customers.

Graham Jefferies, chief operating officer of EMRISE, commented, "The consolidation of the Belix operation into the Ashford facility provides further opportunity to reduce our operating costs while continuing to improve the servicing of our internal requirements and outside customer business. With wound components co-located with our power supply operation we expect further efficiency improvements and a substantial increase in sales of wound components to outside customers. The operation has been moved with no disruption to customer shipments."

Carmine T. Oliva, chairman, president and CEO of EMRISE, commented, "Cost savings for wound components through the consolidation will amount to in excess of $250,000 per year or an additional one cent per share added to our previously announced expectation of ten cents per share in 2005 for a total of eleven cents per share. Our UK power supply subsidiary in Ashford, Kent has completed a $400,000 capital equipment and facilities improvement program as part of EMRISE's greater than $1,000,000 improvement plan. These expenditures were designed to provide a higher capacity production facility to support new high-end, higher volume industrial business to complement our military and aerospace base business. The facilities and capital improvement program was also designed to improve overall operating efficiency for power supply assembly and to increase the capacity and efficiency for wound components as well."

Mr. Oliva continued, "Other anticipated efficiencies and cost savings from our facilities and capital equipment program elsewhere in the corporation, coupled with recently announced new business contracts, are contributing to higher revenue and net income expectations for the year 2005 than previously announced at our recent stockholder meeting held in October and our third quarter conference call. We are likely to increase our revenue and net income outlook for 2005 above the $35 million of revenue and $2.5 million net income previously provided. We will provide an updated revenue and net income outlook sometime after announcing the fourth quarter and full year results for 2004 at the end of February."

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 October 31, 2004, we had a total of 222 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. Factors that could cause or contribute to such differences include, but are not limited to, EMRISE's ability to realize reductions in cost of $250,000 annually due to the consolidation of its UK facilities, to improve efficiency in its UK operations to broaden its customer base, to increase sales to earn $0.11 per share in 2005, to have $35 million or more in sales in 2005 and have $2.5 net income or more in 2005 and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended December 31, 2003.