RAE Systems Launches ppbRAE Plus, Extending Leadership with Markets Most Powerful PID for VOC Detection

SUNNYVALE, Calif. July 12, 2004 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 that it has launched the ppbRAE Plus, one of the most sensitive volatile organic compound gas monitors available to the market. The ppbRAE Plus can detect volatile organic compounds (VOCs) in concentrations as low as 1 part per billion, and by leveraging patented photoionization technology, the ppbRAE Plus has extended its upper detection range from 200 parts per million up to a new high scale reading of 2,000 parts per million. The ppbRAE Plus was designed for HazMat and Homeland Security applications such as the detection of toxic industrial chemicals and chemical warfare agents, and the assessment of people in decontamination settings, whether accident victims or exposed workers. Other applications include leak detection, industrial hygiene and indoor air quality surveys, where the unit can be used to identify the sources of odors and to search for mold and mildew by measuring microbial VOCs.

In addition to the expanded detection range, the ppbRAE Plus self cleaning lamp and sensor minimize the need for maintenance and calibration and sets a new standard for resistance to the moisture and dirt common to hazardous field environments. Broad spectrum detection is critical in protecting human lives, and the ppbRAE Plus has more than 100 built-in correction factors, enabling the unit to measure over 300 different VOCs. In addition, the ppbRAE Plus has UL, cUL and ATEX certifications and a lifetime warranty on non-consuming components.

The most advanced PID detection available just got a lot more advanced, said Robert I. Chen, CEO of RAE Systems. As the pioneer in photoionization technologies for sensing and monitoring solutions, we strive to respond to what our market tells us is important, and many sources told us that a more powerful VOC sensor was high on the list. Were confident that the ppbRAE Plus will provide powerful protection to the men and women who are working to protect us.

The ppbRAE Plus is priced starting at $6,215 and is available now. Upgrades to existing ppbRAE units are also available. For more information, please visit the RAE Systems website at www.raesystems.com, call 1-877-723-2878 or e-mail raesales@raesystems.com.

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 40 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 continue to be strong. 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 economic and industry factors and receptiveness of the 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.