Emrise Corporation Makes $500,000 Payment to Lender Under Terms of Recently Amended Loan Agreement

DURHAM, N.C., March 8, 2012 /PRNewswire/ -- EMRISE CORPORATION (OTCBB: EMRI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, announced today that it has made a $500,000 payment to GVEC Resource IV Inc. and Private Equity Management Group LLC (PEM), its former primary lender in the U.S. (collectively, the Lender), as called for in the recently amended and announced terms of its $1 million interest bearing note (Note).

"This payment represents the achievement of another important milestone for EMRISE and is indicative of the significant progress we have made in recent months," Chairman and CEO Carmine T. Oliva said. "With a remaining Note balance of $500,000, we are now that much closer to being able to make the final Note payment and to finally put that difficult chapter in our history behind us."

Depending on the date of the final Note payment, the amended terms of the Note provide for discounts ranging from 25 percent to 30 percent from the original $1 million principal of the Note.  For example, if the Company makes an additional payment of $200,000 on or before April 30, 2012, the discount would be $300,000, or 30 percent, and the Note would be deemed paid in full.

The Note would also be deemed paid in full if a final Note payment of $225,000 is made on or before June 30, 2012, which would result in a discount of $275,000, or 27.5 percent.  If a final Note payment of $250,000 is received by the Lender on or before August 31, 2012, the discount would be $250,000, or 25 percent, and the Note would then be deemed paid in full.  After August 31, 2012, there would be no discount and the remaining balance of $500,000 would be due in February 2013.

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; radio frequency (RF) and microwave signal processing; and network access and timing and synchronization of communications networks.  The use of its power supplies, RF and microwave signal processing devices and subsystems in on-board in-flight entertainment and connectivity systems is a primary growth driver for the Company's Electronic Devices business segment. The Company's network access and timing and synchronization products are primary growth drivers for the Company's Communications Equipment business segment.  EMRISE serves the worldwide base of customers it has built in North America, Europe and Asia through operations in the United States, England and France.  EMRISE is a publicly traded company whose common stock trades on the OTCBB under the symbol EMRI.  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 ability to make the final Note payment on before April 30, 2012, and receive the 30 percent discount, or its ability to make the additional Note payment on or before June 30, 2012, and receive the 27.5 percent discount, or to make the additional Note payment on or before August 31, 2012, and receive a 25 percent discount,  are forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE Corporation could differ from those statements.  The Company also refers you to those factors contained in the "Risk Factors" section of EMRISE's Annual Report on Form 10-K for the year ended December 31, 2010, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K filed in recent months, and other EMRISE filings with the SEC.

SOURCE EMRISE Corporation