Provo, UT, September 2, 2009 –Raser Technologies, Inc., an energy technology company, announced today that it has received notice from the Department of Energy (“DOE”) that its loan guarantee application for its “East Thermo” project has been denied.  In its notice, the DOE stated “we believe that the East Thermo project possesses fundamental strength, but would benefit from continued development….” 

Project East Thermo is a future phase Thermo-area proposed development, approximately six miles to the east of Raser’s Thermo No. 1 plant.  Raser submitted the loan guarantee application in an effort to extend its range of potential financing options, which also includes potential pre-paid power purchase agreements. Raser recently announced that it had entered into a term sheet with the Southern California Public Power Authority (“SCPPA”) for a pre-paid power purchase agreement that would cover Raser’s next 110 MW to be developed out of the Thermo resource. 

“We understand the DOE’s decision and remain confident in our ability to fully develop our resources. We have other projects that are further along in the development process than East Thermo and are in better positions at this time for both this and other loan guarantee programs,” stated Raser’s principal executive officer Dick Clayton.  “We are moving forward with SCPPA on the pre-paid power purchase agreement and believe that, if finalized, it will assist us in our development efforts at Thermo for the foreseeable future.  We are also evaluating the recommendations made by the DOE and determining when the timing may be right to re-submit the East Thermo application.” 

About Raser Technologies
Raser is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology. 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 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 our ability to finalize a power purchase agreement, 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 testing and commissioning of our geothermal power projects; our beliefs about a local utility’s ability to complete their work in a timely manner; 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; 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 31, 2009, as filed with the Securities and Exchange Commission, and all subsequent filings.

Raser Technologies, Inc.                                                                                

Issa Arnita                                                                                                            

Investor  Relations                                                                                                              

(801) 765-1200   

investorrelations@rasertech.com                                                                   

 Hayden IR

Cameron Donahue

(651) 653-1854

cameron@haydenir.com