EMRISE CORPORATION Announces $1 Million Facilities and Capital Equipment Program.

RANCHO CUCAMONGA, Calif. -- Expenditures are for Higher Volume Production Equipment for Electronic Components for New Products and New Higher Volume Non-Military Customers

EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communication equipment, today announced that it has begun a $1 million facilities and capital equipment program. The program includes new capital equipment for its XET subsidiary's Digitran Division and XCEL Circuits Division, facilities upgrades and capital equipment for its Xcel Power Systems subsidiary and facilities upgrade for its recently consolidated CXR Telcom Corporation and Larus Corporation subsidiaries. The program is expected to be completed over a 6 month period.

Graham Jefferies, Executive Vice President of EMRISE CORPORATION commented: "We are adding a new high speed computer controlled machining center to support quick turnaround of new Digitran switch prototypes and pre production quantities and also to handle the much higher unit volumes associated with our new rotary switch product line. Capital equipment improvements to our XCEL Circuits Division are designed to allow us to build in-house certain specialized printed circuits to support the rotary switch product line and to permit XCD to increase its capacity to support the in-house manufacturing of printed circuits for our new acquisition Larus Corporation. In England we are upgrading facilities and adding high speed surface mount assembly equipment to support new longer run industrial power supply contracts that have been awarded and others that are anticipated in the future. We are broadening our customer base to include longer run high end industrial business to complement our predominately military customer base. Facilities improvements are planned to accommodate our recently combined CXR Telcom Corporation and Larus Corporation. Expenditures include office and production facilities expansion. We expect the facilities and capital equipment program to be completed in six months or less."

Randolph D. Foote, EMRISE CORPORATION'S CFO stated: "This facilities and capital equipment program is clear evidence of EMRISE'S financial strength and commitment to support growth in our various operating units. The financing sources for this program includes lessor provided lease hold improvements, equipment leasing financing by Wells Fargo Bank in the U.S., and other leasing sources and cash from operations."

About EMRISE CORPORATION

EMRISE CORPORATION is a multinational manufacturer of defense and aerospace electronic components and subsystems and communication 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 global electronic components market and are primarily used for defense, aerospace and industrial applications. Our communications group, consisting of CXR Corporation, Larus Corporation and CXR Anderson Jacobson, provides network access, transmission and test equipment to the North American, European and Asian communications industry. Founded in 1983, EMRISE CORPORATION operates out of facilities in the United States, United Kingdom, France and Japan. As of August 31, 2004, we had a total of 221 employees in our various subsidiaries and divisions.

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 complete its $1,000,000 facilities and capital equipment program within the next six months and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended December 31, 2003.