RAE SYSTEMS EXTENDS REACH INTO AMERICA’S HEARTLAND; PURCHASE BY COLE COUNTY, MO MARKS 10,000th MultiRAE SOLD

Emergency Response Team Adopts RAE Systems for Homeland Defense

SUNNYVALE, Calif. – July 8, 2003 -RAE Systems, (OTC BB: RAEE.OB) a leading provider of hazardous environment detection solutions for homeland defense, today announced that the HAZMAT / Weapons of Mass Destruction (WMD) response team in Cole County, Missouri has purchased RAE Systems’ ten thousandth MultiRAE in addition to wireless AreaRAE and ppbRAE gas detection instruments to assess and monitor potentially hazardous environments that occur as a result of hazardous materials accidents or terrorist events.

“The responsibility to protect our citizens is a serious one,” said Michael Rackers, chief of the Cole County Emergency Response Team (C-CERT) “As the events in Oklahoma City in 1995 proved, our location in the heartland of the U.S. is no guarantee of immunity from terrorism. RAE Systems’ hazardous environment sensors will play a key role in our efforts to respond to and secure those situations when an incident does occur.”

C-CERT supports first responders across a seven county area, and has frequently been called to assess and secure the sites of petroleum spills related to the heavy volume of railroad traffic that passes through the region. Recently, however, the department has responded to more than 187 anthrax calls over a three- month period.

“The Cole County purchase is notable in that it marks the 10,000th MultiRAE unit sold to municipal, local and state agencies tasked with protecting the public,” said Bob Durstenfeld, director of marketing for RAE Systems. “The only difference between a terrorist event and a HAZMAT incident is intent, and in those first seconds of a response, it’s absolutely critical that the personnel on the scene have as much information as possible about the hazards they are facing. We’re proud to partner with agencies such as the Cole County HAZMAT team to help ensure the safety of those who protect us.”

RAE Systems fixed systems, deployable ad hoc networks and personal pervasive sensing solutions are deployed in government buildings, public venues and among first responder and military groups in all 50 states. The solutions are used to detect and measure a wide variety of dangerous atmospheric contaminants and conditions such as gamma rays, neutrons, combustible chemical and vapor accumulations, oxygen deficiencies, and toxic chemicals such as carbon monoxide, hydrogen sulfide, carbon dioxide, and many other commonly encountered atmospheric hazards. The company’s patented photo-ionization detector technology allows dependable, linear, part-per-billion range readings for many toxic chemicals and vapors that are effectively undetectable by any other means.

About RAE Systems
RAE Systems Inc. is the leader in rapidly deployable sensing networks for homeland defense and a leading manufacturer of portable, wireless and fixed atmospheric monitors, photo-ionization detectors, radiation detectors, gas detection tubes, sampling pumps and security monitoring devices. Our customers use our products to monitor gas and other volatile organic compounds in confined spaces, to establish a perimeter security around hazardous material sites and to detect the illicit traffic of radioactive materials. 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