PRESS RELEASE

RAE Systems Expands First Responders’ Choice in Chemical Warfare Agent Detection


RAE Systems Launches ChemRAE

SAN JOSE, Calif. – RAE Systems Inc. (AMEX:RAE), a leading global developer and manufacturer of rapidly deployable, multi-sensor chemical and radiation detection monitors and networks for homeland security and industrial applications, today announced the introduction of  ChemRAE, a portable chemical warfare agent (CWA) detector. ChemRAE is available as a stand-alone portable instrument or as a wireless component of the AreaRAE rapid deployment hazardous environment detection platform and adds a RAE Systems -branded CWA detector to the company’s other weapons of mass destruction detection (WMD) solutions.

In addition to ChemRAE, RAE Systems offers the option of integrating the APD-2000 from Smiths Detection, currently the most widely deployed civilian chemical warfare agent detector or the ChemSentry, another market-leading solution, from BAE Systems onto the AreaRAE platform.  RAE Systems’ RAELink2, a wireless open gateway into the AreaRAE network, and the ProRAE Remote base station control software enable users to select and easily configure new detection and monitoring solutions in their AreaRAE networks.

“With over 500 AreaRAE networks deployed, the ability to easily add the chemical warfare agent detector of choice gives first responders the flexibility to select the best instrument for their perceived local threats,” said Andrew Balaschak, senior manager of RAE Systems integrated system products.  “We are pleased that our equipment continues to be selected to provide public security and responder safety.”

The ChemRAE is a new offering from RAE Systems and is the result of collaboration with Environics Oy of Finland.  It is based on open-loop ion mobility spectroscopy (“IMS”) that gives users the ability to see unseen CWA threats in 30 seconds or less. It provides differentiation between nerve, blister, blood and toxic chemicals.  The user display provides the operator with battery life indicator, agent class, agent concentration level, alarm volume level, date and time.  ChemRAE stores a historical log of events including agent alarm information. When used in an AreaRAE wireless network, the ChemRAE’s data is also logged on the ProRAE Remote base station.  The ChemRAE is small enough to be used as a personal detector, as a monitor for surveying contaminated areas, or as a fixed installation detector. It provides continuous operation without the need for expendable desiccant cartridges, unlike other IMS systems. The ChemRAE has a low cost of ownership with no expendables.

Smith’s APD-2000 is designed to detect weapons of mass destruction including; nerve and blister agents, pepper spray and mace. Like the ChemRAE, it also uses IMS technology to detect chemical weapons of mass destruction.

BAE Systems’ ChemSentry 150C chemical detector is the ideal tool for a broad range of applications. It uses surface acoustic wave (“SAW”) and electro-chemical cell technology to simultaneously sample for the presence of blood, blister, and nerve chemical vapors.

More information on RAE Systems’ wireless AreaRAE monitors can be found on the RAE Systems website at www.raesystems.com.

About RAE Systems
RAE Systems is a leading global developer and manufacturer of rapidly deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications. In addition, RAE Systems offers a full line of portable single-sensor chemical and radiation detection products. RAE Systems’ products enable the military and first responders such as firefighters, law enforcement and other emergency management personnel to detect and provide early warning of weapons of mass destruction and other hazardous materials. Industrial applications include the detection of toxic industrial chemicals, volatile organic compounds and petrochemicals. RAE Systems’ products are used by many U.S. government agencies, including the Department of Homeland Security, the Department of Justice, and the Department of State, as well as all branches of the U.S. military, and by numerous city and state agencies. Our end users also include many of the world’s leading corporations in the airline, automotive, computer and oil industries. Our products are used in civilian and government atmospheric monitoring programs in over 50 countries. For more information about RAE Systems, please visit www.RAESystems.com.

About Environics Oy
For more information about Environics please visit www.environicsusa.com.

Safe Harbor Statement
This press release contains “forward-looking” statements, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as “expected to increase.” These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the general economic and industry factors and receptiveness of the market to RAE and its products. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our annual report on Form 10-K and Form 10-Q filings, available online at http://www.sec.gov. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements.

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