-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 BGU7i25SSG35GKuL7ytclmnY0cxoyZ4RFbC0ffs2jZz09D7RiL4U73HcgWzvPHfN
 kja4JP7OWxqU0nrm0GsgpA==

<SEC-DOCUMENT>0001181431-06-048888.txt : 20060821
<SEC-HEADER>0001181431-06-048888.hdr.sgml : 20060821
<ACCEPTANCE-DATETIME>20060821203637
ACCESSION NUMBER:		0001181431-06-048888
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060811
FILED AS OF DATE:		20060821
DATE AS OF CHANGE:		20060821

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:		3775 NORTH FIRST STREET
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134
		BUSINESS PHONE:		408-952-8200

	MAIL ADDRESS:	
		STREET 1:		3775 NORTH FIRST STREET
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134

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

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Vervais Gregory J
		CENTRAL INDEX KEY:			0001372641

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31783
		FILM NUMBER:		061047488

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		925 906 0771

	MAIL ADDRESS:	
		STREET 1:		34 SUGARLOAF TERRACE
		CITY:			ALAMO
		STATE:			CA
		ZIP:			94507
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd128022.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-08-11</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001084876</issuerCik>
        <issuerName>RAE SYSTEMS INC</issuerName>
        <issuerTradingSymbol>AMEX: RAE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001372641</rptOwnerCik>
            <rptOwnerName>Vervais Gregory J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3775 NORTH FIRST STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN JOSE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95134</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Vice President Human Resources</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Employee Stock Options (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.64</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2007-03-28</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-03-28</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">1/4 on Initial Vest Date (date included in Table II column 2 above), provided the Optionee's Service has not terminated pror to such date plus 1/48 for each full month of the Optionee's continious Service from the Initial Vesting Date until the Vested Ratio equals 1/1.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael Ownby, Attorney-in-Fact</signatureName>
        <signatureDate>2006-08-21</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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