RAE Systems Announces Amended Merger Agreement With Vector Capital Increasing Price to $2.25 per Share

RAE Systems Inc. RAE today announced that it has entered into a further amendment to its merger agreement with an affiliate of Vector Capital under which the acquirer has increased the price per share to be paid to our unaffiliated stockholders to $2.25 per share. The termination fee payable in the event that the Vector merger agreement is terminated in connection with a superior offer has also been increased, to $5.75 million. The amended merger agreement was unanimously approved by the Special Committee of the Board of Directors of RAE. Vector Capital proposed this amendment on May 24, 2011 following a definitive proposal submitted on May 24, 2011 by Battery Ventures and SFW Capital Partners to acquire the Company for $2.20 per share. The transaction is subject to customary closing conditions, including the approval of RAE's stockholders. There is no financing condition to the transaction.