Raser Partners with Indonesia Power to Build 110 MW of Geothermal Power on Indonesia’s Most Populated Island

Raser Technologies, Inc. announced today that it was chosen to develop, in conjunction with Indonesia Power, over 100,000 acres of geothermal resources to build an estimated 110 megawatts (MW) of geothermal power in West Java, Indonesia’s most populated island. The 412 square kilometers concession surrounds the Tangkuban Perahu volcano, approximately 15 miles north of Bandung, the capitol of the West Java Province. Bandung has over 2 million people and is the largest city in the West Java Province, which has over 35 million residents.

Local officials and a team from Raser inspect an open geothermal pool.

Indonesia Power is a unit of PT Perusahaan Listrik Negara (PLN), Indonesia’s state owned utility and has 127 power plants producing 8,888 MW of power. Indonesia Power will hold 51% ownership in the venture with Raser, while Raser will own 49%. It is expected that the capital to fund the development of the project in West Java will be independently financed.

Nearly 8 million people live in the immediate vicinity
of the Tangkuban Perahu Volcano, shown here
in the background

PLN is expected to purchase the geothermal power in an effort to reduce its exposure to rising oil prices. Due to growth and rising fuel costs, Indonesia is experiencing an energy crisis and is actively pursuing a plan to grow geothermal power. Indonesia has a stated goal to more than double its current 838 MW of geothermal power output by 2010 and to further grow its geothermal power generation to 9,500 MW by 2025. Outside of the United States, Indonesia has the world’s largest geothermal power generation potential.

Looking into the caldera of the
Tangkuban Perahu volcano

“This unique region has several key factors. It has a high population with an emerging economy, one of the largest geothermal resources in the world, and a strong environmental commitment to renewable energy favoring geothermal “—Michael Hayter, Director of Geothermal Development, Raser Technologies

“We have studied this resource along with The Energy and Geoscience Institute and believe that it could potentially support 200 to 300 MW of clean renewable power,” stated Michael Hayter, Raser’s Director of Geothermal Development. “We anticipate that the initial phase of development will be a rapidly deployed binary plant with additional phases potentially including larger flash geothermal plants.”

Steam rises from the caldera of the volcano

“This may prove to be the beginning of many more projects and a long term commitment by Raser to develop geothermal power in Indonesia” —Michael Hayter, Director of Geothermal Development, Raser Technologies

“We are excited about working with Indonesia Power to expand our geothermal development,” stated Brent M. Cook, Raser’s Chief Executive Officer. “We recognize their expertise in geothermal power operations and applaud their commitment to further develop Indonesia’s significant geothermal resources. We are honored to be their partner and look forward to working with them closely over the next several years.”

Key Points

• Indonesia has the fourth largest population the world behind China, India and USA
• Indonesia has one of the largest reserves of geothermal resources in the world, second only to the USA
• Drivers: Indonesia is experiencing an energy crisis precipitated by the skyrocketing energy prices for oil and coal
• Indonesian government has established a Clean Energy Plan with geothermal power as the central component
• It is estimated geothermal power will contribute 30 percent to the country’s 10,000 megawatts (MW) electricity program –Jakarta Post Aug 11, 2008
• Raser’s project is in a well known geothermal area surrounding a volcano. Nearly 8 million people live within 15 miles of the volcano, with about 37 million people in the province
• Indonesia boasts a huge geothermal energy potential, with an estimated capacity of up to 27,000 MW of electricity, or equal to around 40 percent of the world’s geothermal reserves.
• Indonesia has some of the highest production of geothermal power in the world…currently, Indonesia’s 18 operation geothermal fields produce a combined 1,050 MW of power.

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 strength and enforceability of our agreements; our beliefs about our ability to successfully negotiate power purchase agreements; our beliefs about our ability to obtain project financing for the geothermal power plants we intend to develop; 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.