About RAE Systems

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RAE Systems Inc. (Amex: RAE)

RAE Systems, founded in 1991, is a leading global provider of rapidly deployable connected, intelligent gas detection systems that enable real-time safety and security threat detection. RAE Systems products are used in more than 120 countries by many of the world's leading corporations and government agencies. RAE Systems offers a full line of wirelessly enabled solutions including personal, hand-held, transportable, and fixed instruments designed to meet the needs of any usage scenario.


Multiple Market Opportunities

RAE Systems' products are used by many U.S. and non-U.S. government agencies as well as by numerous city and state entities across the United States. RAE Systems' gas detection solutions have become a standard for companies within the energy production, refining, industrial and environmental safety sectors for a wide range of personal and plant safety and regulation compliance applications.


Growth Strategy

RAE Systems is focused on expanding its penetration in multiple markets, leveraging its infrastructure in China, while driving cost efficiencies and pursuing acquisitions and other strategic relationships. A proven technology leader that owns and manufacturers its own sensor technology, RAE Systems holds over 18 chemical sensor patents and has developed proprietary photoionization, wireless, and radiation technologies. By leveraging both established American and China-based manufacturing subsidiaries, together with a global sales channel and partners, RAE Systems provides the highest level of quality, value, and satisfaction to its customers around the world.


Competitive Advantages

Product Innovation: RAE Systems' detectors are capable of gathering part-per-billion readings with a device the size of a cellular phone.

Wireless Integration: RAE Systems' equipment collects data and transmits it from a remote location to a centralized location for analysis. Few competitors have the same wireless capability, and none are as focused on the growing homeland security marketplace as RAE Systems.

Customer Service: RAE Systems high level of customer support has enabled it to build a strong brand and close customer relationships, as well as differentiate itself from competitors.

Patented Technology: RAE Systems has 18 issued and pending patents for its technology.



Investment Rationale

RAE Systems is a rapidly growing developer and manufacturer of multi-sensor gas detection monitors and networks for a wide range of applications.

• RAE Systems has an extensive patent portfolio with broad protection
• RAE Systems competes at the higher end in its product categories, with historically high gross margins
• A portion of RAE Systems' sales is derived from consumables, and future contributions from these high margin items will grow as the installed base of RAE Systems' products grows
• There is industry recognition of RAE Systems' technology and increasing visibility of its brand
• RAE Systems is a product leader with a strong position in various growing markets, including homeland defense, the military, industrial, HazMat and first responders, and environmental safety

The company also has an international presence in Asia and Europe

• RAE Systems is gaining market share
• RAE Systems has a diversified, blue-chip customer base
• RAE Systems' growth is driven by a combination of organic and strategic acquisitions

RAE Systems has an established and cohesive management team, with a track record of delivering compound annual growth in revenues and earnings. RAE Systems has a strong scientific advisory board supporting long-range marketing and product development strategies.