RAE Systems Announces AreaRAE Responder, the First ATEX Certified Wireless Multi-gas Monitor for the EU Market

SAN JOSE, Calif. January 10, 2006 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 launch of the AreaRAE Responder and RAELink 2-E for the European market. The AreaRAE Responder is the first multi-gas, wireless, monitoring system with ATEX Certification for use in hazardous environments. The RAELink 2-E is the companion wireless gateway for other sensor products. Key applications for the AreaRAE Responder include fire brigades dealing with chemical spills, industrial plants for hot work permits during plant shut downs and in refineries and chemical plants for worker safety.

The AreaRAE Responder and RAELink2-E operate in the 869MHz frequency band, allowing license-free operation in most European Union countries, said Andrew Balaschak, RAE Systems director of integrated system products. Using the maximum authorized transmission power and powerful mesh networking capabilities, AreaRAE Responder and RAELink2-E modems can monitor hazardous environments from distances up to 3 km from the base station controller.

The AreaRAE Responder supports up to five simultaneous gas sensors including: oxygen, lower explosive limit and photoionization detector for volatile organic compounds (VOCs), as well as any two of the following toxic gas sensors: ammonia, carbon monoxide, chlorine, hydrogen cyanide, hydrogen sulfide, nitric oxide, phosphine and sulfur dioxide. The AreaRAE Responder and RAELink 2E communicate through the ProRAE Remote base station control software on a standard personal computer or laptop running the Windows XP operating system. The ProRAE Remote software is available in English, French, German, Italian and Spanish. Each network can support up to eight AreaRAE Responder or compatible portable monitors. The wireless network also supports RAE Systems ATEX certified MultiRAE Plus, ppbRAE Plus and MiniRAE 2000 handheld gas monitors by using RAELink2-E modems. The AreaRAE network also supports an integrated wireless weather station and a number of third-party monitors for chemical weapons detection.

The AreaRAE Responder is packaged in a rugged, weather-resistant stainless steel package. It is ATEX certified for EX II 3G EEx nAL IIC T6, operation in environments where hazardous gases and vapors may be present. AreaRAE Responder is also available as part of RAE Systems Rapid Deployment Kit (RDK). The RDK delivers a complete system of four AreaRAE Responder monitors, a turn-key base station controller and all required accessories in easy-to-carry transport cases.

The AreaRAE Responder provides a rapid deployment gas detection solution for fire brigade hazardous materials teams and other first responder organizations. It can be used for temporary to semi-permanent industrial applications such as petrochemical plant maintenance. Additionally, AreaRAE Responder can be used for air monitoring at important public events. There are over 500 AreaRAE networks deployed in North America, where it has become the de-facto industry standard in wireless gas detection for rapid deployment in hazardous environment monitoring.

The hazardous environment AreaRAE Responder and RAELink 2-E are available now through RAE Systems European subsidiaries and distributors. For more information please refer to the datasheets at www.raesystems.dk, e-mail raesales@raesystems.com or call +45 8652 5155.

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 and statements regarding the Company and it products. Each of these forward-looking statements are subject to risks and uncertainties and readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors. In addition, our forward-looking statements should be considered in the context of the 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.

AreaRAE Responder, RAELink 2-E, RDK, Rapid Deployment Kit, MiniRAE 2000, MultiRAE, ppbRAE and ProRAE Remote are trademarks of RAE Systems. Windows XP is a trademark of Microsoft Corporation.

Contacts:
Bob Durstenfeld
408-952-8402
bdurstenfeld@raesystems.com

In Europe:
Chris Hameister
+45 8652 5155
chameister@raesystems.com