This paper presents an integrated sensor network and distributed event processing architecture for managed in-building traffic evacuation during natural and human-caused disasters, including earthquakes, fire and biological/chemical terrorist attacks. The proposed wireless sensor network protocols and distributed event processing mechanisms offer a new distributed paradigm for improving reliability in building evacuation and disaster management. The networking component of the system is constructed using distributed wireless sensors for measuring environmental parameters such as temperature, humidity, and detecting unusual events such as smoke, structural failures, vibration, biological/chemical or nuclear agents. Distributed event processing algorithms will be executed by these sensor nodes to detect the propagation pattern of the disaster and to measure the concentration and activity of human traffic in different parts of the building. Based on this information, dynamic evacuation decisions are taken for maximizing the evacuation speed and minimizing unwanted incidents such as human exposure to harmful agents and stampedes near exits. A set of audio-visual indicators and actuators are used for aiding the automated evacuation process. In this paper we develop integrated protocols, algorithms and their simulation models for the proposed sensor networking and the distributed event processing framework. Also, efficient harnessing of the individually low, but collectively massive, processing abilities of the sensor nodes is a powerful concept behind our proposed distributed event processing algorithms. Results obtained through simulation in this paper are used for a detailed characterization of the proposed evacuation management system and its associated algorithmic components.