RAE Systems Implements Cost Reductions
Reduces Americas' Workforce by 10%
SAN JOSE, Calif. - March 28, 2008 - RAE Systems Inc. (AMEX: RAE), a leader in
delivering innovative sensor solutions to serve industrial, energy, environmental and
government safety markets worldwide, announced a ten percent reduction of its
Americas' workforce. After recording approximately $100,000 in severance costs in the
first quarter of 2008, the company expects to save approximately $1.3 million annually.
Also, the company has implemented specific cost reductions that will be realized
beginning in the second quarter of 2008, including the elimination of non-essential
marketing programs, streamlining its service processes, decreasing certain product costs to sustain its targeted gross margins, and consolidating engineering and manufacturing in China for better facility utilization.
"Driving profitable revenue growth is our top priority in 2008," said Robert I. Chen,
president and chief executive officer. "As we discussed in early March, we have begun
implementing specific programs to improve gross margins increase productivity and
reduce operating expenses without impacting product quality. RAE Systems values its
employees and the contributions they make to the company; this decision was reached
after careful consideration of current business conditions balanced against our objective to return to sustainable profitable growth in 2008."
About RAE Systems
RAE Systems is a leading global provider of rapidly deployable sensor networks that
enable customers to identify safety and security threats in real time. Products include
multi-sensor chemical detection networks, wireless gas detection systems and radiation
monitors for energy production and refining, industrial and environmental safety, and
public and government first responder security. RAE Systems' products are used in over
85 countries by many of the world's leading corporations and by many U.S. government
agencies. For more information about RAE Systems, please visit
www.RAESystems.com.
Company Contact:
Investor Relations
408-952-8449
investorrelations@raesystems.com
IR Agency Contact:
Christiane Pelz
Lippert/Heilshorn & Assoc., Inc.
415-433-3777
cpelz@lhai.com
