Business Week

Friday, June 16, 2006

RAE Systems (AMEX:RAE) Mentioned In Business Week

How RAE Sniffs Out Security Leaks: "How RAE Sniffs Out Security Leaks

Investors scouting undiscovered plays in homeland and industrial security are snapping up RAE Systems (RAE ) (RAE). It makes sensors to detect trace levels of lethal gas and radiation. Julie Chen of New York Global Securities rates the stock, now at 3.80, a buy. Tian Hou of investment bank C.E. Unterberg, Towbin says: 'RAE is one of the most important plays in homeland security.' In 2004, RAE introduced the world's smallest portable chemical detection device and has since produced a multisensor detector, a wireless chemical sensor network, and a combined chemical and radiological detector. Products to screen cargo and containers have been tested at some U.S. ports, says Chen: 'What's unusual is that RAE has captured a big share of the market in both the U.S. and China,' she adds. Two U.S. plants generate 52% of sales, and two in China 33%. Chen expects RAE to earn 3 cents a share on sales of $70 million, vs. 1 cents on $60 million in 2005. "


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