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Press Release

RAE Systems Protecting World Archaeological Treasure


Company providing indoor air security for excavation and restoration of terracotta warriors, famed Chinese cultural antiquities

SUNNYVALE, Calif. December 20, 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 is working with provincial and local organizations to provide indoor air security utilizing a RAE Systems equipped wireless sensing network at the site of the archeological excavation of Xian, Chinas famous terracotta warriors.

The terracotta warriors date from approximately 246 BC and were buried with Chinas first emperor, for protection in the afterlife. Farmers digging a well in 1974 accidentally discovered the site, and to date, over 6,000 figures of soldiers and horses have been excavated. Due to the sheer volume of the find, the collection is often referred to as the eighth wonder of the world.

Its critical that the environments in the museum and restoration areas are constantly monitored, said engineer Bo Rong of the Museum of Qin Terra Cotta Warriors of Horses. Weve deployed a wireless sensing network using AreaRAEs and IAQRAEs to monitor humidity, temperature, carbon dioxide, hydrogen sulfide, sulfur dioxide, nitrogen oxide, oxygen and several VOCs. The data streams from the IAQRAEs and AreaRAEs are transmitted to a central office using wireless RF modems, where ProRAE Remote software provides us a real-time, comprehensive view of the museum.

Since the terracotta warrior figures were damaged during a peasant uprising shortly after they were interred over 2,000 years ago, their condition remains delicate as they are excavated and reassembled, said Robert I. Chen, CEO of RAE Systems. Various pollutants and fluctuations in certain atmospheric gases can damage the figures, as can molds and the byproducts of the chemicals used in the restoration process. AreaRAE provides powerful situational awareness, helping curators and archaeologists ensure these important antiquities will be available for future generations.

AreaRAE networks are used in environmental monitoring settings around the world when protecting lives and valuable property is critical. The multi-sensor solution leverages powerful photoionization detection (PID) that detects parts-per-million measurement concentrations of volatile organic compounds (VOCs) in addition to lower explosive limits, oxygen levels, and specific toxic substances such as carbon monoxide, hydrogen sulfide, sulfur dioxide, and ammonia.

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.


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