RAE Systems Adds European ATEX Certification to Entry RAE; Certification Follows Launch of AutoRAE, EntryRAE's Automated Calibration System

Business Wire, Jan 4, 2005

SUNNYVALE, 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 that it has received European ATEX certification for EntryRAE, the personal gas monitor for OSHA compliant, hazardous confined space entry (CSE) work.

The European Union Parliament and Council's ATEX certification provides technical requirements for equipment intended for use in potentially explosive atmospheres, and manufacturers who apply its provisions are able to sell their equipment anywhere in Europe without any further requirements.

The certification follows the recent announcement of AutoRAE, an automated charging, bump testing and calibration system developed for the EntryRAE. Consisting of a controller and up to ten cradles, the AutoRAE is a PC-free push-button bump test, calibration and charging system that in future releases will scale to a PC-driven automated calibration system with bi-directional communication to a monitor to give remote users added insight into calibration frequency and sensor health for proactive maintenance.

The EntryRAE was designed for applications such as oil and gas, chemical processing, water facilities, nylon and resin production, rail car cleaning, sewer entry, and marine uses. Regulatory agencies throughout the European Union will benefit from the protection provided by the EntryRAE, as will U.S. agencies such as OSHA, EPA, refinery personnel and municipal and public works personnel.

"Whether in Europe or the U.S., most gas detection standards haven't kept pace with the dangers present in today's industrial environment," said Bob Durstenfeld, director of corporate marketing for RAE Systems. "The standard four-gas monitor that includes oxygen, carbon monoxide, hydrogen sulfide and combustible sensors is simply insufficient protection from the many common toxic gases and vapors and especially volatile organic compounds (VOCs) that are major constituents or byproducts of modern industrial processes."

Durstenfeld continued," Entry RAE's certification and calibration enhancements mean that the men and women around the world who routinely work in confined spaces are can be better protected with equipment that is accurate, charged, and ready to protect them from instantly lethal toxic threats as well as the long-term exposure effects."

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

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. 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. 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.