RAE Systems, Gas Detection Company, Opens New European Office

Sunnyvale, California – October 7, 2002 – RAE Systems Inc. (OTC BB: RAEE.OB), a Gas Detection and Smart Sensing Network solution provider for environmental, safety and security monitoring, has opened RAE Systems Europe ApS its new European office in Skanderborg, Denmark. The opening of this new office was in response to RAE Systems’ expanding customer base in Europe.

“There was a strong need to provide service and sales support in local languages and in similar time zones,” said Robert Chen, chief executive officer of RAE Systems. “The new office will soon accept orders in Euros reducing transaction costs for customers.”

Denmark was chosen as the new office site due to its proximity to the large German industrial base, the growing economies of Eastern Europe, the local scientific knowledge in acoustics, microphones and radio frequency (RF), and the existing tax treaty between the United States and Denmark. This location also gives RAE Systems access to Danish design capability.

The RAE Systems products with approvals for sale in Europe include: the MultiRAE Plus, a five gas monitor for volatile organic compounds (VOC), LEL and oxygen level; the QRAE Plus, a four gas monitor for confined space entry; the MiniRAE 2000 linear photo-ionization detector for VOC detection; the ppbRAE for parts-per-billion VOC detection; the UltraRAE for compound specific detection; and the ToxiRAE pocket size single gas monitor. The industries that these products serve include: oil and gas production, petroleum refineries, chemical plants, fire protection, safety, hazardous response, government services, regulatory agencies, environmental remediation, utilities, law enforcement, port authorities, and military teams.

The contact information for RAE Systems Europe ApS is Mossoevej 9, 8660 Skanderborg, Denmark, Phone: 45-86521555, Fax: 45-86525177. The new office will be under the management of Robert Chen, Chief Executive Officer of RAE Systems and Michael Jorgensen, RAE Systems European Sales Manager.

About RAE Systems

RAE Systems Inc. is 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.