About RAE Systems

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RAE Systems Inc. (Amex: RAE)
RAE Systems, founded in 1991, is a leading global developer and manufacturer of rapidly deployable chemical and radiation detection monitors and multi-sensor networks for homeland security and industrial applications. RAE Systems’ technologically advanced products are based on proprietary technology, and include a full line of portable, wireless and fixed atmospheric monitors and photoionization detectors and gamma and neutron radiation detectors for the detection and early warning of hazardous materials.

Multiple Market Opportunities
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.

The Company’s 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. RAE Systems’ end users also include many of the world’s leading corporations in the airline, automotive, computer, and oil industries. RAE Systems’ products are used in civilian and government atmospheric monitoring programs in over 50 countries.

Growth Strategy
RAE Systems growth strategy 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.

Pursue key markets:

  • Homeland security market
  • Rapidly expanding network detection market

Expand the deployment of wireless sensor networks

  • Public venue protection
  • Transportation logistics
  • Community awareness

Leverage cost-efficient infrastructure in China
Pursue acquisitions, joint ventures, licensing agreements and corporate alliances

Competitive Advantages
Product Innovation: RAE Systems’ detectors are capable of gathering part-per-billion readings with a device the size of a cellular pager. While other companies have products that can gather similar accuracy readings, their devices are larger in size.

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 provides customer support in the form of active user seminars for the equipment it produces. This high level of customer support has enabled RAE Systems to build a strong brand and 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 chemical detection monitors and networks for homeland security and industrial 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, and environmental safety.

  • The company also has an international presence in Asia and Europe
  • RAE Systems is gaining market share in its markets
  • 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