Completion of Tax Equity Capital for Development of Raser’s 10 MW Utah Geothermal Power Plant

Provo, Utah, October 20, 2008 — Raser Technologies, Inc. announced today that it has received the final $21 million installment of the tax equity payment under a definitive agreement that provides project financing and tax equity capital for Raser’s 10 megawatt (MW) Thermo geothermal power project near Beaver, Utah. The funding arrangement previously provided approximately $30 million of non-recourse debt financing and tax equity capital to construct the Thermo geothermal power plant. Under this arrangement, the tax equity capital is provided by Raser’s tax equity partner in exchange for most of the tax benefits provided by the renewable energy project.
Raser’s proprietary geothermal plant is designed to produce 14 MW of gross and 10 to 11 MW of net electrical power, or enough to power approximately 9,000 homes in the City of Anaheim, which has agreed to purchase the zero emissions power for the next 20 years. This final tax equity payment is expected to help Raser to complete the construction of its first Thermo plant by the end of October, just six months after the groundbreaking ceremony. Using Raser’s revolutionary rapid deployment strategy, the Company is expected to complete the first commercial geothermal power plant to be developed in less than one year.
Raser recently announced the results of an independent geological engineering report completed by GeothermEx, Inc. which concluded that the Thermo resource and wells had sufficient heat and flow to produce significantly in excess of the planned 10 MW. The report concludes that the larger Thermo area resource could most likely produce more than 230 MW of geothermal power. Raser believes the initial 10 MW Thermo plant has a resource with sufficient heat and flow that it could potentially support expansion through “cascading” or “bottom cycling” to produce additional net power.

Brent M. Cook, Raser’s CEO, commented, “The receipt of the final funding for the Thermo project financing marks another significant milestone towards executing our innovative development strategy for producing clean renewable energy that is important to our nation’s energy future. This closing allows Raser to continue moving forward with our rapid deployment plans. We are proud to say that this first plant is scheduled to be producing power, in just six months from our groundbreaking in May of this year. That fact alone revolutionizes the building and operations of geothermal power plants as we have known them in the past. Before now, the average time to develop a geothermal power project has been approximately five to seven years. We believe this vast Thermo resource has the potential to support many additional development projects as we move forward with our rapid deployment strategy. The verification of this resource and its vast potential reserves is perhaps one of the most significant events in the history of the Company.”

About Raser Technologies
Raser (NYSE Arca: RZ) is a publicly traded, environmentally focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron™ technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology 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 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 and its qualification for certain federal tax credits; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the developments of our geothermal power projects; our beliefs about our ability to construct power plants; our beliefs about the strength and enforceability of our agreements; our beliefs about the ability of the parties to meet the conditions imposed in the funding agreements; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; our beliefs about our ability to secure the equipment and services, on acceptable terms, required to complete our power projects; our ability to attract alliance, monetization or financial partners for the power projects we intend to develop; our beliefs about our ability to successfully conclude contract negotiations with our financing partners on acceptable terms; our beliefs in the ongoing financial stability of our financing partners; our beliefs that the conditions necessary to fund the development of our geothermal projects can be satisfied; our beliefs regarding the revenues and costs associated with a normalized geothermal power plant including the development and management fees that we would receive in connection with such normalized plant; our beliefs regarding the potential for bottom-cycling operations and the potential economic benefits associated with such bottom-cycling operations; our understanding of accounting treatments for financial reporting of tax treatment of our geothermal projects; 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 June 30, 2008, as filed with the Securities and Exchange Commission, and all subsequent filings.

All forward-looking statements in this 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

Raser Technologies, Inc.
Richard Putnam
Investor Relations
(801) 765-1200
investorrelations@rasertech.com

Hayden Communications, Inc.
Cameron Donahue
(651) 653-1854
cameron@haydenir.com