PROVO, Utah, September 9, 2008 — Raser Technologies, Inc. announced today that it received cash from its initial funding from the close of the Thermo project financing that includes construction funding and tax equity capital that was announced last week. As was reported last week, the funding arrangement, which was entered into pursuant to the commitment letter Raser received earlier this year, provides non-recourse debt financing and tax equity capital to construct the Thermo geothermal power plant. Under this arrangement, the tax equity capital is provided in exchange for most of the tax benefits provided by the renewable energy project.

Proceeds from debt financing and tax equity capital for the initial funding of Thermo were approximately $30 million, from which approximately $14 million were paid to Raser for reimbursement of construction costs paid by Raser prior to closing. Under the funding agreement, additional cash proceeds from the tax equity capital will be received by Thermo when needed to complete plant construction.

“We are very pleased to have completed this financing for our first project at the Thermo site. Our progress on the plant’s construction has been very good, and we expect that construction will be completed in October of this year,” stated Martin Petersen, Raser’s Chief Financial Officer.

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 contains 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 belief 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 the power plants; our beliefs about the strength and enforceability of our agreements; our beliefs that the conditions necessary to fund the development of our geothermal projects can be satisfied; our beliefs about the economic benefits of contemplated financing structures; our understanding of accounting treatments for financial reporting of tax treatment of our geothermal projects; and our beliefs about the geothermal market generally. 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 for geothermal 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