RAE Systems Europe to Demonstrate ATEX-Certified Line of Toxic Chemical and ITRAP Certified Radiation Detectors at A+A 2003 in Dsseldorf

DSSELDORF, Germany- October 27, 2003 -RAE Systems Inc. (AMEX: RAE), a leading global developer and manufacturer of rapidly-deployable, multi-sensor chemical and radiation detectors and networks for homeland security and industrial applications, today announced that it plans to demonstrate a line of ATEX-certified toxic chemical and ITRAP-certified radiation detectors at the A+A trade show in Dsseldorf on October 27-30.

RAE Systems’ hazardous environment sensors and rapidly deployable ad hoc networks are currently used for terrorist incident response, environmental remediation, industrial safety, emergency response and hazardous material spills in more than 50 countries around the world. The ATEX-certified products that RAE Systems plans to demonstrate are

RAEGuard, a permanently mounted Photo-Ionization Detector (PID) transmitter for the detection of Volatile Organic Compounds (VOCs)

MultiRAE Plus, one to five gas monitor that can be configured from a simple, inexpensive Oxygen/LEL monitor to an affordable five gas monitor for total protection in toxic environments including Volatile Organic Compounds (VOCs)

BadgeRAE, a zero-maintenance personal gas detector for either hydrogen sulfide or carbon monoxide protection

MiniRAE 2000, a hand-held Photo-Ionization Detector (PID) for VOC measurement

ppbRAE, a handheld PID monitor providing rapid, reliable measurement of VOCs and Toxic Industrial Compounds in the parts-per-billion (ppb) range.

ATEX certification, or Directive 94/9/EC of the European Union Parliament and Council, provides technical requirements for equipment intended for use in potentially explosive atmospheres. ATEX refers to the French phrase “ATmosphere EXplosible,” and manufacturers who apply its provisions are able to sell their equipment anywhere in Europe without any further requirements.

RAE Systems’ family of radiation detectors have been certified for use by the International Atomic Energy Agency’s (IAEA) Illicit Traffic and Radiation Detection Assessment Program: The ITRAP certified products that will be shown include:

gammaRAE, a pager sized radiation detector used by law enforcement, border patrol, customs and immigration officers to detect gamma radiation sources

neutronRAE, a pager sized neutron and gamma radiation detector used for detecting the trafficking of fissile materials and illicit radiation sources

RAE Systems is exhibiting in Hall 6, stand C12. For more information, please contact raesales@raesystems.com or visit the A+A website at www.aplusa-online.de.

About RAE Systems

Founded in 1991, 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 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. 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 U.S. Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as “to demonstrate” and “reliable”. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. 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.