Provo, UT, June 22, 2010 – Raser Technologies (NYSE: RZ) began drilling on its second geothermal project located in the Animas basin in southwestern New Mexico.

“We’re making good progress,” said Ben Barker, Raser’s Vice President of Resource Management.  “Right now we’re cleaning the mud out of the hole and changing it over to fresh water so we can do an air lift test.”

That test was successful.  Now geologists will take samples to study the geothermal water’s chemical make up as well as the permeability of the resource itself.

Mr. Barker added, “The Animas basin is one of the most recognized ground water resources in New Mexico.”

The Lightning Dock area is one of the most studied, undeveloped geothermal resources in the entire United States.  Numerous wells have been drilled since the 1970’s, providing Raser with valuable geological information.

“We’re excited about this project,” said Hidalgo County’s Economic Development Coordinator, Tad Powers.  “The government and the county have been backing this project every step of the way.  We’d do anything we can to promote it, to support it.”

The project is expected to be a 15 megawatt power plant.  The drilling is being performed by Barbour Well, Inc. of Henderson, Nevada.

About Raser Technologies

Raser (NYSE: RZ) is an environmental energy technology company focused on geothermal power development and technology licensing.  Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.

Cautionary Note Regarding Forward-Looking Statements

This video and press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding: our beliefs about preliminary drilling results; our beliefs about the potential for geothermal power generation on our leased properties; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the development of our geothermal power projects; our beliefs about our ability to obtain adequate development funding; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; our ability to regain and maintain compliance with NYSE listing standards; and our beliefs about the geothermal market in general. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to secure necessary permits; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 2010, as filed with the Securities and Exchange Commission, and all subsequent filings.

All forward-looking statements in this video and press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release