Susan K. Barnes Appointed to RAE Systems Board of Directors

SUNNYVALE, Calif. September 1, 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 appointment of Susan K. Barnes to the companys board of directors.

Ms. Barnes is currently the Senior Vice President and Chief Financial Officer at Intuitive Surgical (NasdaqNM:ISRG), a rapidly growing medical device company that manufactures a robotic surgical system that enables surgeons to perform minimally invasive surgery using open surgical techniques. At Intuitive Surgical, she led the company through an initial IPO in 2000 and a follow-on offering in 2003.

Susan Barnes depth of experience will bring exceptional insight and perspective to how we translate cutting-edge sensing network technologies to the protection and enhancement of human lives, said Robert I. Chen, CEO of RAE Systems. Her proven track record in finance, technology and clear understanding of corporate governance will contribute significantly to RAE Systems continued global success. It is an honor to have her on our board.

Prior to joining Intuitive Surgical in June 1997, Barnes was co-founder and managing director of the Private Equity Group at Jefferies & Company, Inc. Previously, Ms. Barnes has held senior management positions at Westwind Capital Partners and Richard C. Blum & Associates, Inc. She also served as Vice President and CFO of NeXT Computer, Inc. Ms. Barnes received a BA from Bryn Mawr College and an MBA from the Wharton School, University of Pennsylvania.

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.