RAE Systems Adds Radiation, Power Management, Sensor Network and Biochemical Safety Experts to Advisory Board

Company Looks to Future of Sensing Technologies; Adds Vision and Technical Depth to Existing Technology Advisory Board

SUNNYVALE, Calif. September 27, 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 the appointments of Dr. William H. Dunlop, Dr. King Owyang, Dr. Chung-Chiun Liu, and Mr. James S. Johnson to the companys technology advisory board.

As we look to the future of pervasive sensing and wireless sensing technologies, RAE Systems advisory board has a critical role in providing input and advice in the development of our evolving strategic plan, said Robert I. Chen, CEO of RAE Systems. We are honored that these academic and industry leaders are bringing their unique knowledge and abilities to complement the backgrounds and skills of our technical staff. Their depth of experience and technical expertise will increase our understanding of sensing network technologies and will enhance our ability to develop powerful, innovative solutions.

The new members are:
Dr. William H. Dunlop, recently retired as the Program Leader for the proliferation Prevention and Arms Control Program at the Lawrence Livermore National Laboratory. Dr. Dunlop holds a Ph.D. in nuclear physics and has been actively involved in cargo container security issues to support the Department of Homeland Security. He has also been actively involved in arms control issues, and has served as the technical advisor to the U.S Ambassador during negotiations on the Comprehensive Test Ban Treaty.

Dr. King Owyang, president and CEO of Siliconix, the leader in MOSFET (metal-oxide semiconductor field-effect transistors) for power management in battery powered applications. Dr. Owyang holds a Ph.D. in physics, has published over 20 technical papers and has been awarded more than 20 U.S. patents.

Dr. Chung-Chiun Liu, the Wallace R. Persons Professor of Sensor Technology and Control and Professor of Chemical Engineering at Case Western Reserve University. Dr. Liu holds a Ph.D. in chemical engineering and has done postdoctoral work in bioelectronics. He holds a number of honors and awards, including the Presidential Award for Excellence in Science, Mathematics and Engineering Mentoring, and is a fellow in the Electrochemical Society and the American Institute of Medical and Biological Engineers.

James S. Johnson, the Section Leader of the Chemical and Biological Safety (CBS) Section in the Hazards Control Department at the Lawrence Livermore National Laboratory. The CBS Section consists of the Industrial Hygiene Analytical Laboratory, Respirator Program, Special Studies and Core Program and is responsible for defining, maintaining and supporting the laboratorys institutional program in biological and chemical safety. Mr. Johnson is a fellow in the American Industrial Hygiene Association, and has served as a consultant to the International Atomic Energy Agency. He has authored over 40 technical papers.

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.