SUNNYVALE, California – July 31, 2002 – RAE Systems Inc. (OTC BB: RAEE.OB), a Gas Detection and Smart Sensing Network solution provider for environmental, safety and security monitoring, today announced its second quarter operating results. Revenue in the current quarter of $5.1 million increased 13% over the same period last year. The operating loss in the current quarter was $10 million, which included non-cash accounting charges of $9.6 million. This compares to an operating profit of $87,000 for the same period last year. The accounting charges were primarily for non-cash stock-based compensation associated with the Nettaxi merger transaction which closed in April 2002.
“Market acceptance of our Smart Sensing Network platform and solutions is driving our Second Quarter revenue,” said Robert I. Chen , president and CEO. “We have a long history of supporting our first responders, military and law enforcement agencies around the country, with personal protection and detection devices. With our wireless sensor-integrated platform, we now possess the industry’s first wirelessly integrated multi-gas, multi-point environmental monitoring and security system. The U.S. Coast Guard and the State of Iowa Office of —- first responders, have selected our state-of-the-art systems as an integral part of their anti-terrorism first response network. RAE is well-positioned to provide life critical data anytime, anywhere via our proprietary 2-mile radius local area network, and the RAE Secure Web.”
About RAE Systems
RAE Systems Inc. is a smart sensing network platform and solution provider and a leading manufacturer of single and multiple sensor atmospheric monitors, photo-ionization detectors, gas detection tubes, sampling pumps and wirelessly connected gas detection and security monitoring devices. Our products and services are designed to enable our customers to monitor gas and other volatile organic compounds in confined spaces, and to establish a perimeter security around hazardous material sites and sites of weapons of mass destruction. RAE Systems’ customers operate in such industries as safety and security, oil and gas, pharmaceuticals, utilities, food, chemical, airlines, military and hazardous material storage and disposal, and its monitors 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 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 “market acceptance” and “well-positioned”. 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 receptiveness of the wireless systems 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 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.
RAE Systems Welcomes President & CEO of Ericsson Microelectronics to its
Board of Directors
SUNNYVALE, California – July 31, 2002 – RAE Systems Inc. (OTC BB: RAEE.OB), a Gas Detection and Smart Sensing Network solution provider for environmental, safety and security monitoring announced today that Bo Andersson , President and CEO of Ericsson Microelectronics, has accepted RAE’s invitation to join its Board of Directors. Mr. Andersson has extensive experience in the wireless and infrastructure systems component business, and will provide guidance to RAE Systems in the areas of technology and wireless standards. According to Robert I. Chen, President and CEO of RAE Systems, “Mr. Andersson’s election will facilitate our entry into the wireless systems business. His expertise in this area will enable us to broaden our knowledge and will assist us in focusing our resources on the strategic implementation of wireless systems solutions”.
Mr. Andersson joined Ericsson in 1977, where he was the Head of Process Technology Development. In 1994, he was the Project Manager for the building of the sub micron facility in Kista , Sweden . Between 1994 and 1998, Mr. Andersson was the General Manager for the Power Modules Business within the Ericsson Components AB. In 1998, he was appointed Head of the Microelectronics Business Unit, and in May 2000, was appointed as President and CEO of Ericsson Microelectronics.
Mr. Andersson is a member of the Micro-Electronics Development for European Applications Board in Paris , France and Chairman of the Steering Committee for the Microtechnologies Centre at Chalmers University in Sweden . Mr. Andersson received a Master of Science degree in Physical Engineering from the Royal Institute of Technology in Stockholm , Sweden in 1977.