RAE Systems Extends HazMat Leadership with HazRAE Handheld Wireless Decision Support System

Real Time Decision Support Application Runs on Handheld Devices

SUNNYVALE, Calif. February 1, 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 an alliance with Alluviam LLC to launch the release of HazRAE, a hazardous materials decision support application for chemical, biological and WMD assessment that runs on handheld, wireless devices.

HazRAE was developed to address the unique needs of first responders, who must have more, better and faster information at hand when assessing unknown hazards. HazRAE features an integrated response database system consisting of more than 91,000 chemical, biological warfare and bioterror agents, trade names and improvised explosive devices. Materials can be retrieved using traditional search identifiers such as name or UN number, but when no standard identifiers are present or known, particularly a concern when responding to terrorism, HazRAE is able to identify unknown chemicals using signs and symptoms observed in victims.

The National Fire Protection Associations Standard for Professional Competence of Responders to Hazardous Materials Incidents472 suggests that all responders collect physical clues to help identify materials involved in incidents. HazRAE is the first decision support system to use these physically observed characteristics such as colors, textures, gas or liquid, heavier than air, and odors to quickly and systematically identify potential agents involved in an incident.
First responders now have the ability to move from detection to decision in a matter of seconds. HazRAEs comprehensive knowledgebase and advanced analytical capabilities, such as the ability to identify dual-use precursors, virtually mix agents and model their reactions, provides industry leading decision support capabilities. More, better, faster information is what counts in the field, and HazRAE extends RAE Systems family of powerful sensing and monitoring solutions, making first responders smarter and safer.

The combination of a RAE Systems advanced photoionization detector (PID) the MultiRAE Plus, MiniRAE 2000 and/or ppbRAE Plus and HazRAE, enables first responders to move quickly from threat detection to response decision, said Rudy Mui, vice president of marketing for RAE Systems. Using HazRAE to identify the threat, and the built-in library of Correction Factors, the PID can be quickly configured to take accurate measurements of a known threat.
Were pleased to have worked hand-in-hand with RAE Systems to be the first to bring leading detection and decision support capabilities together on a powerful handheld platform, said Greg Ouzounian, chief technology officer for Alluviam. The solution benefits first responders by providing a full range of capabilities, from detection through decision in any response situation–a powerful combination to help keep responders out of harms way.

HazRAE is available starting February 15, 2005, initially in the US, only, for $2,295.00 which includes the ready-to-use system and one year of support. For more information on HazRAE, please call 1-877-723-2878 or e-mail raesales@raesystems.com or go to www.raesystems.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 Alluviam, LLC
Alluviam develops highly mobile, best of breed solutions for emergency response, homeland security, forensics, law enforcement, emergency medical services and industrial emergency response. Alluviam has provided its next-generation technologies to the Secret Service, USCG, Special Forces, USMC, USAF, the Intelligence Community, and the National Guard in addition to numerous state and local agencies. Alluviams technology is the only mobile DoD COE/JTA compliant HAZMAT, Chem/Bio/WMD decision aid, and is the only system that provides full functionality and interoperability on devices ranging from smart cell phones, to handheld and laptop/desktop computers. For more information about Alluviam LLC, please visit www.alluviam.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.