RAE Systems Makes First Shipment Against Five-Year U.S. Military Contract for Wingtank Entry Kits

SUNNYVALE, Calif. March 14, 2005 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 received the first order against a five year Indefinite Delivery/ Indefinite Quantity contract to supply the U.S. Military with MultiRAE Wingtank Entry Kits. The contract specifies a minimum order of 150 units each year, and the first order has been placed for 280 units that will be shipped this calendar quarter.

RAE Systems Wingtank Entry Kit is customized specifically for entering and servicing aircraft wing-tanks. Its alarms, gas measurement scales and calibration gases are specially tailored for use in environments containing jet fuel vapors. The Wingtank Entry Kit uses PID (Photoionization Detectors) instead of traditional Wheatstone bridge LEL (Lower Explosive Limit) sensors for measuring jet fuel vapors.

This contract further extends our growing role in military aviation worker safety, and builds on our previous successes in providing Wingtank Entry Kits to the U.S. military, said Robert I. Chen, CEO of RAE Systems. The aircraft that support our fighting forces must be in superior condition, and the military relies on the Wingtank Entry Kits to ensure the safety of the men and women who perform critical service on these aircraft.

The Wing Tank Entry Kits PID technology is a superior solution for sensing Lower Explosive Limit (LEL) alarms in the jet fuel environment because the PIDs sensitivity makes it less prone to false alarms. The MultiRAE Wingtank Entry Kit is customized specifically for operator safety when entering and servicing aircraft wingtanks. In addition to a PID, the MultiRAE Plus used in the Wingtank Entry Kit also includes an oxygen sensor and a traditional LEL sensor that provides a backup reading for the PID. While the MultiRAE Plus has an additional 2 toxic gas sensor sockets that may be filled with CO, H2S, or any two of 10 toxic gas sensors, these two toxic sockets are not filled in the MultiRAE Wingtank Entry Kit as they are typically not required in this particular environment.

About RAE Systems
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 enable the military and first responders such as firefighters, law enforcement and other emergency management personnel to detect and provide early warning of weapons of mass destruction and other hazardous materials. Industrial applications include the detection of toxic industrial chemicals, volatile organic compounds and petrochemicals. 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. Our end users also include many of the worlds leading corporations in the airline, automotive, computer and oil industries. Our products 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 expected to increase. 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 Form 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.