EMRISE CORPORATION Consolidates Operations as Part of Corporate Streamlining.

RANCHO CUCAMONGA, Calif. -- Combines Two Wholly Owned Subsidiaries into Single Subsidiary: CXR/Larus Corporation as Integration Effort Is Now Completed

EMRISE CORPORATION (OTCBB:EMRI), a multi-national manufacturer of defense and aerospace electronic components and subsystems and communications equipment, today announced that management has completed the integration of Larus Corporation, which was acquired in July of 2004, and as of December 30, 2004, it has combined CXR Telcom and Larus Corporation, co-located in San Jose, Calif., into a single legal entity, CXR/Larus Corporation. This consolidation is part of EMRISE's ongoing strategy to strengthen and expand its overall communications business. CXR Telcom was physically relocated into the Larus Corporation facility in September of 2004. The creation of a single subsidiary will further integrate operations and consolidate the strategic plan of the organization in an effort to more effectively drive the communications business.

Larry Taillie, president, CXR/Larus Corporation, commented: "This is a natural progression for the Larus and CXR Telcom business and was anticipated when the acquisition of Larus was made. By officially combining these two subsidiaries into a single business, we can expand our reach into a common customer base, increase the utilization of common suppliers, and achieve aligned goals. Bringing the two companies together will result in greater cost efficiency, improve delivery and enhance our ability to service customers. Larus and CXR Telcom each bring unique strengths to the relationship, and the combination will allow us to accelerate our efforts to grow the communications segment of our business. Both Larus and CXR Telcom's substantial line of network access, timing and test products are standards in the telecommunication industry and with this combination, we will be well positioned to address the needs from the largest Regional Bell Operating Companies to the small phone companies, utilities, OEMs and enterprises on a more aggressive basis."

Carmine T. Oliva, president and chief executive officer of EMRISE CORPORATION, added: "When we acquired Larus Corporation in July of 2004, we believed there would be great synergy between our CXR Telcom business and Larus. With the consolidation of CXR Telcom into the Larus facility, Larus has become a significant operating entity within EMRISE, it was appropriate to take the next step and combine these two communications businesses, thereby creating a branded subsidiary with critical mass that could improve its reach into the communications sector. Both companies have been successful during 2004, each contributing significant revenue and operating profit to EMRISE. By putting them into a single entity we expect that it will significantly improve their efficiency and focus to allow even greater penetration in their markets and improve our communications business in North America. We expect the new CXR/Larus Corporation to continue its growth trajectory and positively contribute to our operating results in 2005."

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/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 December 31, 2004, we had a total of 215 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 improve operating efficiency, synergy, lower costs and increase profitability due to the consolidation of CXR Telcom Corporation and Larus Corporation into a single facility and legal entity and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended December 31, 2003.