RAE Systems and Vastera Show New Homeland Security Controls for Maritime Trade

Combined Offering Strengthens Ocean Shipping Security Initiatives through Integration of Wireless Cargo Container Sensing and Automated Global Trade Compliance

U.S. MARITIME SECURITY EXPO, NEW YORK September 14, 2004 In response to the U.S. Customs and Border Protections Container Security Initiative, RAE Systems Inc. (AMEX: RAE) and Vastera (Nasdaq: VAST) today announced that the companies are jointly providing the first end-to-end physical trade security and compliance offering. The solution is designed to help global importers and exporters more effectively manage and monitor their maritime cargo while fulfilling the complex requirements of U.S. and international trade laws. The new offering integrates Vasteras automated global trade management solutions with a variety of RAE Systems wirelessly networked security sensors. Logistics and supply chain personnel now can more easily manage their trade compliance requirements while gaining unparalleled visibility and active early warning into whether their cargo containers have been breached, well before they arrive in port.

The joint offering combines RAE Systems robust RAEWatch wireless sensor networks and Vasteras TradeSphere, a suite of web-based applications that streamline and automate the information exchanges associated with the cross-border movement of goods. RAEWatch security sensors are deployed in cargo shipping containers to monitor radiation, intrusion and temperature. Placing no overhead for additional data requirements on the ocean carrier, RAEWatch sensors seamlessly transmit data to logistics and trade compliance applications such as Vastera TradeSphere, merging the containers identification and security status with standard shipment and manifest data. Should a container be breached, RAEWatch sends an alert to TradeSphere, enabling the customer to contact appropriate security and Customs authorities to prevent breached containers from clearing Customs without inspection.

The disturbing fact is that the global supply chain remains one of the most critical gaps in our national and economic security, said Rudy Mui, vice president of marketing for RAE Systems. Ninety percent of world cargo moves by container, and only a very few of the seven million containers that enter the U.S. every year are ever inspected. Active, end-to-end monitoring must be employed, from the point of loading to the place of delivery. The combined solution from RAE Systems and Vastera takes a huge step in providing real-time data at every point in the supply chain to give global trade managers the timely data they need to protect human lives.

If terrorists were to carry out an attack on a seaport using a cargo container, the maritime trading system would likely grind to a halt until seaport security is improved, said Bruce Lovett, vice president of marketing for Vastera. By integrating physical security and monitoring capabilities that allow customers to have greater visibility into and control of their cargo, Vastera continues to remain a leader in delivering global trade solutions that address the latest compliance concerns and regulations.

According to U.S. Customs & Border Protection, more than 200 million cargo containers move between major seaports each year. In the United States, almost half of incoming trade (by value) arrives by ship. Nearly seven million cargo containers arrive on ships and are offloaded at U.S. seaports each year. For more information on the U.S. Customs & Border Protections Container Security Initiative, visit: http://www.cbp.gov/xp/cgov/enforcement/international_activities/csi/.

RAE Systems and Vastera are demonstrating the solution at the U.S. Maritime Expo at the Jacob Javits Convention Center in New York City. For additional details, visit their booth #843 on September 14-15, 2004.

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 Vastera
Vastera is the worldwide leader in providing solutions for Global Trade Management (GTM). Utilizing Vasteras GTM solutions, clients realize significant reductions in costs to manage their global trade operations while improving compliance with government regulations and service levels to end customers. Vasteras GTM solutions include: TradeSphere (software), Trade Management Consulting (business process consulting), and Managed Services (business process outsourcing). As the only publicly traded company focused exclusively on global trade, Vastera is headquartered in Dulles, Virginia and has more than 650 professionals, in 14 countries. With over 400 clients throughout the world, many of the worlds largest corporations utilize their GTM solutions. For more information, please visit www.vastera.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, Vastera, and their respective product and service offerings. In addition, these forward-looking statements should be considered in the context of other risk factors discussed in each companys filings with the Securities and Exchange Commission, including but not limited to their annual reports on Form 10-K and interim quarterly reports on Form 10-Q, available online at http://www.sec.gov. All forward-looking statements are based on information available to each company on the date hereof, and each company disclaims any obligation to update such statements.