RAE Systems Provides Hazardous Environment Monitoring at 115th Tournament of Roses Parade

SUNNYVALE, Calif.—January 7, 2004—RAE Systems Inc. (AMEX: RAE), a leading global developer and manufacturer of rapidly-deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications, today announced that it provided integrated hazardous environment monitoring for the 115th Tournament of Roses Parade and the football game that took place in Pasadena, California on New Year’s Day. The parade has grown to become not only a favorite American ritual, but also a worldwide event, drawing hundreds of millions of viewers from around the globe.

Local police, fire and public safety organizations played leading roles in ensuring the safety of the estimated one million attendees at the parade and relied on RAE Systems’ wirelessly networked multi-gas monitors to provide real-time data on air quality along the parade route. Monitors were also strategically placed in and around the Rose Bowl Stadium to provide protection for the football game.

“Protecting human lives is central to the vision of RAE Systems, and we salute the men and women who worked behind the scenes to ensure the public safety of this important event,” said Robert I. Chen, president and CEO of RAE Systems. “This is the latest event that demonstrates that RAE Systems is the de facto choice among first responders and public safety organizations when accurate, sensitive, field-proven, public safety monitoring solutions are critical.”

About RAE Systems

Founded in 1991, 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 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. 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 “to demonstrate” and “reliable”. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. 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.

Contact: Bob Durstenfeld RAE Systems 408-585-3534 bdurstenfeld@raesystems.com