RAE Systems Announces Definitive Agreement to Acquire Majority Interest in KLH, a Beijing-Based Manufacturer of Security, Environmental and Personal Safety Monitors.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--May 3, 2004 Combination to create technology and distribution leader to serve rapidly growing China market RAE Systems Inc. (AMEX AMEX See: American Stock Exchange :RAE), a leading global developer and manufacturer of rapidly-deployable, multi-sensor chemical and radiation detection monitors and networks for homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States and industrial applications, today announced that it has signed a definitive agreement to acquire a 64% interest in KLH KLH Keyhole Limpet Hemocyanin KLH Knight of the Legion of Honour KLH Kloss, Lowe and Hoffman (audio equipment brand) KLH Korea Light Helicopter (Ke Li Heng), a privately-held company for a purchase price of $9 million. KLH is a Beijing-based manufacturer and distributor of security, environmental and personal safety monitors and equipment. With the acquisition of KLH, RAE Systems will be able to expand its presence in the burgeoning personal security and safety market in China and gain access to an established distribution channel. In addition, the acquisition adds a number of patented technologies and fixed systems to the company's portfolio, including sensing solutions for oxygen, LEL LEL Lower Explosive Limit LEL Lower Earnings Limit (UK tax/pensions) LEL Link, Embed and Launch LEL Library of English Literature LEL Lower Exposure Limit LEL Language Extended Lexicon , carbon monoxide carbon monoxide, chemical compound, CO, a colorless, odorless, tasteless, extremely poisonous gas that is less dense than air under ordinary conditions. It is very slightly soluble in water and burns in air with a characteristic blue flame, producing carbon dioxide; , hydrogen sulfide hydrogen sulfide, chemical compound, H2S, a colorless, extremely poisonous gas that has a very disagreeable odor, much like that of rotten eggs. It is slightly soluble in water and is soluble in carbon disulfide. , ammonia and chlorine. The transaction, which is subject to certain closing conditions as well as Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
The combined companies expect to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. significant growth opportunities resulting from complementary products, technologies, distribution channels and geographic presence in China. As one of the world's largest and fastest growing economies, the trend toward security, environmental safety and personal protection is growing quickly. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the US Commerce Department, China is expected to invest over $300 billion to build their infrastructure over the coming decade, including $23 billion in infrastructure, security and safety spending related to the 2008 Beijing Olympics and other similar events. "The established market presence and sales, distribution, and support organization of KLH will enable us to quickly and effectively address the growing need in China for security and environmental sensing and personal safety solutions," said Robert I. Chen, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of RAE Systems. "The market in China presents a significant opportunity, from large-scale infrastructure projects to increasing security and environmental awareness and regulations to growth in public transportation systems. With the powerful combination of KLH's fixed monitoring systems and our strengths in wireless sensing networks, we are looking forward to creating a market leader in security and safety. KLH was founded in April 1996 and currently has over 140 employees with developed distribution channels in 28 provinces. The company manufactures its own line of security and environmental safety and personal protection monitors, automated monitoring and control instruments and fixed industrial safety sensing and monitoring systems. In addition, the company currently serves as a distributor for RAE Systems' products as well as a number of other complementary security and safety, sensing and monitoring companies. "KLH is a spin-off from Beijing Science & Technology Academy, which has led many successful ventures in China, including one for General Electric," said Cao Feng Guo, chairman of the board of KLH, who will remain as a board member in the joint venture between RAE and KLH. "RAE Systems adds a globally recognized brand, international management, and leading technology to KLH's leadership in the China market. We are confident that we will now be a comprehensive supplier of technologically advanced products to the Chinese market with unparalleled distribution." For more information on KLH, please visit http://www.klh-sps.com/index_e.htm. For more information on details of the agreement, please read the attached question and answer list or visit www.raesystems.com. About RAE Systems RAE Systems is a leading global developer and manufacturer of rapidly deployable, multi-sensor chemical detection monitors and networks for homeland security and industrial applications. In addition, RAE Systems offers a full line of portable single-sensor chemical and radiation detection products. 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 Weapons that are capable of a high order of destruction and/or of being used in such a manner as to destroy large numbers of people. Weapons of mass destruction can be high explosives or nuclear, biological, chemical, and radiological weapons, but exclude the means of transporting or and other hazardous materials. Industrial applications include the detection of toxic industrial chemicals, volatile organic compounds volatile organic compound Environment Any toxic cabon-based (organic) substance that easily become vapors or gases–eg, solvents–paint thinners, lacquer thinner, degreasers, dry cleaning fluids and petrochemicals. RAE Systems' products are used by many U.S. government agencies, including the Department of Homeland Security Noun 1. Department of Homeland Security - the federal department that administers all matters relating to homeland security Homeland Security executive department - a federal department in the executive branch of the government of the United States , 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. Our end users also include many of the world's leading corporations in the airline, automotive, computer and oil industries. Our products are used in civilian and government atmospheric monitoring programs in over 50 countries. For more information about RAE Systems, please visit www.RAESystems.com Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press release contains "forward- looking" statements, as that term is used in Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are denoted by such words as "will be deployed". These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the general economic and industry factors and receptiveness of the market to RAE and its products. In addition, our forward- looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q filings, available online at http://www.sec.gov. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements. |
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