RAE Systems Adds Plume Measurement Capabilities to Sensor Networks with SAFER Systems Alliance

Sensor networks combined with plume measurement software create the only wireless system available for toxic chemical response

SUNNYVALE, Calif. June 28, 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 entered into an alliance with SAFER Systems, a manufacturer of chemical risk management software. RAE Systems will offer SAFERs plume measurement capabilities as an option with AreaRAE wireless deployments, and real-time wireless weather data to provide predictive plume measurement and dispersion behavior. This combination presents the first and only all wireless system to manage and monitor toxic chemical release events.

The addition of SAFER Systems plume modeling capabilities to our sensing solutions further extends our ability to provide better, faster and more data to emergency management incident commanders and first responders, said Robert I. Chen, CEO of RAE Systems. As our family of monitoring products and sensing systems expands, we continue to focus on innovating cutting-edge technologies and solutions that save lives.

The joint solution provides the ability for incident commanders and response personnel to evaluate the toxicological effect on the community surrounding a toxic release, to understand how long the event will persist, and evaluate shelter-in-place or evacuation strategies. The data from the event is also saved for analysis at a later date.

Leveraging RAE Systems proven sensing networks with our software solutions gives first responders a uniquely robust solution for assessing and responding to toxic releases, said Robert K. Elders, CEO of SAFER Systems. Incident commanders and other remotely located experts can better guide emergency services by analyzing environmental and plume data that is based on actual site information.

For more information about the joint RAE Systems / SAFER Systems solution, please contact RAESales@raesystems.com or sales@safersystem.com.

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

About SAFER Systems
SAFER Systems is the recognized global leader in chemical emergency management software and has been for the past twenty-five years. SAFER provides global 500 corporations and government entities with a comprehensive network of emergency response management, safety analysis, and engineering software tools. SAFER Systems software is used to track and predict toxic gases (inside and outside of buildings), along with fires and explosions, in the chemical, petrochemical, refining, pulp & paper, pharmaceutical and transportation industries. Using weather data, gas sensors, GIS, terrain, and population data, along with the chemical and physical properties of any given chemical, SAFER software is used in responding to emergency situations, saving lives through early warning. SAFER software is also routinely used for safety/security planning, training, education, emission and odor management, engineering analysis, public relations, and in many other day-to-day applications by the safety, security, and environmental leadership of each plant site. For more information, please visit www.safersystem.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.