EMRISE Corporation to sell electronic devices business unit to Data Device Corporation

EMRISE  Corporation, a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, has entered into a stock purchase agreement with an affiliate of Data Device Corporation, to sell all of the issued and outstanding shares of the common stock of the Company’s wholly owned subsidiary, EMRISE Electronics, for a cash purchase price of US$22m,  net of debt, transaction and other related expenses and a holdback of US$1.3m in escrow to secure indemnification obligations and any shortfall in working capital (the “Transaction”). This is expected to yield net proceeds of approximately US$11m to the Company,  excluding amounts held in escrow and after payment of certain taxes and liquidation related expenses. The Transaction has been unanimously approved by the Company’s Board of Directors and is subject to stockholder approval.