EXHIBIT 99.1


                    EMRISE CORPORATION TO RESTATE FINANCIALS

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--May 9, 2006--EMRISE CORPORATION (NYSE
Arca:ERI), a multi-national manufacturer of defense and aerospace electronic
components and communications equipment, today announced that it plans to
restate its financial statements for 2005 and 2004 due to the apparent premature
recognition during the quarter ended December 31, 2004 of approximately $224,000
of net sales of communications test equipment units that were not actually
delivered to the customer during that quarter and thus did not meet all
applicable revenue recognition criteria until after that quarter.

These $224,000 of net sales were included in the Company's $9,768,000 and
$29,861,000 of total net sales previously reported for the quarter and year
ended December 31, 2004, respectively, and it appears, represented approximately
$165,000 of the Company's $883,000 and $1,480,000 of net income previously
reported for the quarter and year ended December 31, 2004, respectively.

To the extent it is finally determined that all applicable revenue recognition
criteria were met for these units during the quarter ended March 31, 2005,
these $224,000 of net sales would be added to the $7,299,000 and $41,046,000
of total net sales previously reported for the quarter ended March 31, 2005
and year ended December 31, 2005, respectively, and would decrease the
Company's $350,000 net loss previously reported for the quarter ended
March 31, 2005 and increase the Company's $1,288,000 net income previously
reported for the year ended December 31, 2005 by approximately $165,000.

The Company's audit committee is conducting an investigation into this matter in
response to an inquiry by the staff of the Securities and Exchange Commission's
Division of Enforcement. The audit committee's investigation has revealed that
Company documentation relating to the invoicing and shipment of the
above-referenced units prior to January 2005 is false and/or misleading.
Responsibility for the false and/or misleading documentation and the resulting
misstatement in the Company's financial statements has not been fully
ascertained. The audit committee continues to investigate this situation with
the assistance of outside legal and accounting professionals.

The Company intends to prepare amendments to its periodic reports to reflect the
change in the timing of recognition of the sales. Because the audit committee's
investigation is ongoing, the information noted above is subject to change.

The Company is in the process of preparing its Form 10-Q for the quarter ended
March 31, 2006, which quarterly report is due on or before May 15, 2006.
However, the Company anticipates delaying the filing of its quarterly report
until the audit committee's investigation is complete and the Company files its
restated financial statements.

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, the actual types and amounts of
adjustments to be made to the Company's financial statements, the periods as to
which adjustments may be required, and the timing of the preparation and filing
of amended and new periodic reports, are forward-looking statements that involve
a number of risks and uncertainties. The actual future results could differ from
those statements. Factors that could cause or contribute to such differences
include, but are not limited to, additional information that may be discovered
and actions that may be taken in the course of the audit committee's
investigation and in connection with the Securities and Exchange Commission
inquiry; any actions that any governmental, judicial or regulatory agencies may
take with regard to the Company or its affiliates or customers; and other risks
detailed from time to time in the Company's public statements and its periodic
reports and other filings with the Securities and Exchange Commission.

Contact:

Carmine T. Oliva, Chief Executive Officer
(909) 987-9220