PRESS RELEASE

RAE Systems Releases Radiation Software Upgrade


ProRAE Studio Radiation Now Supports GammaRAE II, NeutronRAE II & GammaRAE II Responder

SAN JOSE, Calif. – RAE Systems Inc. (AMEX: RAE), a leading global provider of rapidly deployable sensor networks that enable customers to identify safety and security threats in real time, today introduced new software for the GammaRAE II, NeutronRAE II and GammaRAE II Responder personal radiation detectors.  With this new software, stored readings from GammaRAE II units with firmware version 2.0 or greater, all NeutronRAE II units, and all GammaRAE II Responder units can be downloaded to a local computer using a Bluetooth wireless link.  Also included in this new release is the ability to view an instrument’s configuration from the computer.

The software now gives users the ability to download up to 60,000 data points from the GammaRAE II and 30,000 data points from either the NeutronRAE II or the GammaRAE II Responder. At once per minute, this capacity represents 1000 hours or over one month of continuous data for the GammaRAE II and 500 hours or almost 3 weeks of continuous data for the NeutronRAE II or GammaRAE II Responder.

This new software is available free of charge to RAE Systems’ radiation products customers from our website at http://www.raesystems.com/Downloads. Current owners of registered GammaRAE II, NeutronRAE II or GammaRAE II Responder unit(s) will receive a CD with this software upgrade in the mail.

About RAE Systems
RAE Systems is a leading global provider of rapidly deployable sensor networks that enable customers to identify safety and security threats in real time. Products include multi-sensor chemical detection, radiation and digital video monitoring networks for homeland security and industrial applications. RAE Systems’ products enable the military and first responders such as firefighters, law enforcement and other emergency management personnel to detect, provide early warning and record events that involve 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.

Safe Harbor Statement
This press release may contain "forward-looking" statements, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, without limitation: expressions of “belief,” “anticipation,” or “expectations” of management; statements as to industry trends or future results of operations of RAE Systems and its subsidiaries; and other statements that are not historical fact.  These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated by the forward-looking statements. 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 Systems and its products, and the level of both private and government spending for safety and security technology. 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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