Operating income for the second quarter of fiscal 2009 was $1.0 million compared to an operating loss of $120,000 during the second quarter of fiscal 2008. In the second quarter of fiscal 2009, as a result of a change in estimate, the Company reversed a $1.1 million marketing fund accrual for iPod compatible products which had accumulated in the previous two fiscal years. The improvement in operating income (loss) for the second quarter compared to the prior year was due primarily to: lower cost of sales resulting from a decrease in warehousing costs, import brokerage royalty expense and legal fees; and lower S,G&A expenses, partially offset by higher year-over-year quality assurance costs.

Net income for the second quarter of fiscal 2009 was $687,000, or $0.03 per diluted share, compared to a net loss of $3.3 million, or $0.12 per diluted share, for the second quarter of fiscal 2008. The improvement in second quarter fiscal 2009 net income was primarily attributable to the higher operating income, and $301,000 of realized gains on redemptions of the Company's auction rate preferred securities. The net loss in the second quarter of fiscal 2008 included a $3.7 million increase in estimated liability for California franchise taxes for tax years 1979-1990 which was shown as a component of provision for income taxes on our Consolidated Statement of Operations.

"Emerson returned to profitability for the second quarter of fiscal year 2009, driven primarily by the continued success of our Home Appliance product category, where sales grew 6% as a result of our expanded product selection and increased distribution across our network of mass market retailers, in addition to the $1.1 million iPod marketing fund reversal which was no longer required," said John Spielberger, President of North American Operations. "We are progressing on the implementation of a number of operating and strategic improvements to our business model designed to enhance product design and marketing across key categories, including Audio. While we are pleased with this quarter's results, we're also mindful of the potential effects of the economic slowdown. In this environment, we will continue to emphasize several key factors that define our market position and ability to drive sales -- our reputation among consumers for our products which deliver value and reliability, our strong retailer partnerships, and our venerable brand."

The Company also announced today that it filed a Current Report on Form 8-K with the Securities and Exchange Commission (SEC), which includes a letter to shareholders that contains additional insight into the Company's financial performance and strategic and operational progress during the second quarter and first half of fiscal 2009.

About Emerson Radio Corp.

Emerson Radio Corporation (AMEX: MSN), founded in 1948, is headquartered in Parsippany, N.J. The Company designs, markets and licenses, worldwide, a variety of consumer electronics and home appliances including microwaves and wine coolers, clock radios, full lines of televisions and other video products, and audio and home theater products. For more information, please visit Emerson Radio's Web site at www.emersonradio.com.

Forward-Looking Statements

This release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct and you should be aware that actual results could differ materially from those contained in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including the risk factors detailed in the Company's reports as filed with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this news release.

                   EMERSON RADIO CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
              (In thousands, except earnings per share data)
                                 Three Months Ended     Six Months Ended
                                    September 30          September 30
                                  2008       2007       2008       2007
                                =========  =========  =========  =========
Net revenues
Net revenues                    $  55,092  $  57,823  $  98,187  $ 110,426
Net revenues-related party              2         39         15        124
                                =========  =========  =========  =========
                                   55,094     57,862     98,202    110,550
                                =========  =========  =========  =========
Costs and expenses:
Cost of sales                      47,361     51,393     85,382     96,641
Other operating costs and
 expenses                           1,593      1,548      2,724      3,344
Selling, general and
 administrative expenses
 (exclusive of reimbursement
 claim-related party and
 non-cash compensation shown
 below)                             4,760      5,307      9,588     10,284
Reimbursement claim-related
 party                                313         --        313         --
Non-cash compensation, net of
 recoveries                            18       (266)        36       (187)
                                =========  =========  =========  =========
                                   54,045     57,982     98,043    110,082
                                =========  =========  =========  =========
Operating income (loss)             1,049       (120)       159        468
Interest income (expense),  net        49        (66)       181          4
Gain on sale of building               --        854         --        854
Interest income-related party          --         --         --        163
Unrealized holding (losses) on
 trading securities                   (52)        --        (21)        --
Realized gains on trading
 securities                           301         --        532         --
                                =========  =========  =========  =========
Income before income taxes and
 minority interest                  1,347        668        851      1,489
Provision for income taxes            699      3,952      1,226      4,331
Minority interest in loss of
 consolidated subsidiary              (39)        --       (133)        --
                                =========  =========  =========  =========
Net income (loss)               $     687  ($  3,284) ($    242) ($  2,842)
                                =========  =========  =========  =========
Net income (loss) per share:
Basic                           $    0.03  ($   0.12) ($   0.01) ($   0.10)
Diluted                         $    0.03  ($   0.12) ($   0.01) ($   0.10)
Weighted average shares
 outstanding:
  Basic                            27,130     27,130     27,130     27,122
  Diluted                          27,130     27,130     27,130     27,122
                   EMERSON RADIO CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET
                              (In thousands)
                                                  September 30,  March 31,
                                                      2008        2008(A)
                                                  ============ ============
                                                  (Unaudited)
Cash and cash equivalents                         $      6,436 $     14,444
Restricted cash                                          3,023           --
Foreign exchange forward contracts                          --          134
Accounts receivable (less allowances of $3,818
 and $4,148, respectively)                              26,798       17,289
Due from affiliates                                         41          765
Inventory, net                                          44,993       24,854
Deferred tax assets                                      4,420        5,412
Other current assets                                     4,054        4,377
                                                  ============ ============
     Total current assets                               89,765       67,275
Property, plant and equipment, net                       1,706        1,902
Investments in marketable securities                     8,459       11,948
Other assets                                             6,597        6,804
                                                  ============ ============
     Total assets                                 $    106,527 $     87,929
                                                  ============ ============
Current liabilities                                     41,939       22,978
Long-term borrowings                                       102          142
Other long term debt                                        73           57
Minority interest                                           --          133
Shareholders' equity                                    64,413       64,619
                                                  ============ ============
     Total liabilities and equity                 $    106,527 $     87,929
                                                  ============ ============
(A) Reference is made to the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 2008 filed with the Securities and Exchange
Commission in July 2008. The Company filed a 10-K/A in July 2008.

CONTACT:

Emerson Radio Corp.
Greenfield Pitts
Chief Financial Officer
(212) 897-5441

Investor Relations:
Robert Maffei
Investor Relations Manager
(973) 428-2098

Brainerd Communicators
Brad Edwards or
Denise Roche
(212) 986-6667

Media Relations:
Brainerd Communicators, Inc.
Scott Cianciulli
(212) 986-6667

EMERSON RADIO CORP.
610 Fifth Ave
New York, NY 10020

SOURCE: Emerson Radio Corp.