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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 O6CVUEEQD/EQxkxrJ/rER8cI/kzo+jdb71NusH9AznKUGX4aNF1nyXZXacWndbS9
 ahp6z3UZ7rwJTcs6kIs7WA==

<SEC-DOCUMENT>0001181431-03-032283.txt : 20031121
<SEC-HEADER>0001181431-03-032283.hdr.sgml : 20031121
<ACCEPTANCE-DATETIME>20031121115256
ACCESSION NUMBER:		0001181431-03-032283
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031120
FILED AS OF DATE:		20031121

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RAE SYSTEMS INC
		CENTRAL INDEX KEY:			0001084876
		STANDARD INDUSTRIAL CLASSIFICATION:	MEASURING & CONTROLLING DEVICES, NEC [3829]
		IRS NUMBER:				770588488
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1339 MOFFETT PARK DRIVE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			95112
		BUSINESS PHONE:		408-752-0723

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NETTAXI INC
		DATE OF NAME CHANGE:	19990422

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			FEISEL LYLE
		CENTRAL INDEX KEY:			0001261089

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31783
		FILM NUMBER:		031017146

	BUSINESS ADDRESS:	
		STREET 1:		1339 MOFFETT PARK DR
		CITY:			SUYNNYVALE
		STATE:			CA
		ZIP:			95112
		BUSINESS PHONE:		408 752 0723

	MAIL ADDRESS:	
		STREET 1:		1339 MOFFETT PARK DR
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			95112
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd23582.xml
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-11-20</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0001084876</issuerCik>
        <issuerName>RAE SYSTEMS INC</issuerName>
        <issuerTradingSymbol>AMEX: RAE</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001261089</rptOwnerCik>
            <rptOwnerName>FEISEL LYLE</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O RAE SYSTEMS, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>1339 MOFFETT PARK DRIVE</rptOwnerStreet2>
            <rptOwnerCity>SUNNYVALE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94089</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector><isOfficer>0</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther></reportingOwnerRelationship></reportingOwner><derivativeTable><derivativeTransaction><securityTitle><value>Option (Right to Buy)</value></securityTitle><conversionOrExercisePrice><value>3.07</value></conversionOrExercisePrice><transactionDate><value>2003-11-20</value></transactionDate><deemedExecutionDate><value>2003-11-20</value></deemedExecutionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>A</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>10000</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2003-11-20</value></exerciseDate><expirationDate><value>2003-11-20</value></expirationDate><underlyingSecurity><underlyingSe
curityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>10000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>40000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><ownerSignature><signatureName>Lea Anne Matsuoka</signatureName><signatureDate>2003-11-21</signatureDate></ownerSignature></ownershipDocument>



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