RAE Systems' Enhanced MeshGuard Wins at Large China Steel Mill

SAN JOSE, Calif. - January, 26, 2010 -RAE Systems Inc. (NYSE AMEX: RAE), today announces that its MeshGuard wireless gas-detection system has been selected by Yuxi Xianfu Iron & Steel (Group) Co., LTD, a large steel producer in China.

MeshGuard in a Steel Mill

Yuxi Xianfu Iron & Steel (Group) Co., LTD located in Yunnan Province, China, produces 1.5 million tons of rolled steel and 300 thousand tons of stainless steel annually. This enterprise pays a lot of attention to worker safety and environmental protection when applying new technologies during production. The facility had a known problem in monitoring carbon monoxide (CO) in its hot-process areas where the dirty and hazardous environment presented unique challenges to any deployed gas detection system. The system would have to deal with blast furnaces, electromagnetic interference, dust and vibration. In addition the gas detection solution needed to wireless and quick to deploy, as the steel mill could not afford the down time to install shielded cables.

According to Mr. Bin Lu, RAE Systems China vice president of sales: "By installing the MeshGuard system, Yuxi Xianfu Iron & Steel saved on the cost of monitoring a dangerous work site and they have been able to improve their production efficiency. The steel mill ran a one-month evaluation that included tests on system stability and reliability using a MeshGuard Rapid Deployment Kit (RDK) that included six CO monitors. The wireless systems enabled the MeshGuard monitors to be located on both sides of the gas pipeline feeding the blast furnace. The FMC 2000 controller was installed in the workshop control room. They were very satisfied with the fast deployment of the MeshGuard system and the monitoring capability that it provides. They will increase the application of MeshGuard RDKs in their factory."

MeshGuard is a wireless, single gas monitoring system that can be configured to detect carbon monoxide (CO), hydrogen sulfide (H2S), lower-explosive-limit/flammability (LEL) and sulphur dioxide (SO2). It is ideal for oil refineries, chemical plants, oil and gas drilling and exploration operations, storage facilities, shipyards, liquid storage terminals and hot process steel mills.

The MeshGuard system and MeshGuard RDK are available from authorized RAE Systems distributors. For more information on this product, go to raesystems.com/products/meshguard. For additional information on RAE Systems' other toxic gas and radiation products, please visit www.raesystems.com.

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 disposable gas-detection tubes, single-gas personal monitors, multi-sensor chemical detection monitors, photoionization detector (PID) monitors for volatile organic compounds (VOCs), wireless gas detection systems, and radiation monitoring networks for energy production and refining, industrial and environmental safety, and public and government first responder security sectors. RAE Systems' products are used in over 95 countries by many of the world's leading corporations and by many global Governmental agencies. For more information about RAE Systems, please visit www.RAESystems.com.

Company Contacts:
Bob Durstenfeld

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