Company Reaffirms Thermo Construction Schedule and Funding

PROVO, Utah, September 17, 2008 – Raser Technologies, Inc. today commented on the announced acquisition of Merrill Lynch by Bank of America, praising the combination of the financial giants. Raser also reaffirmed that the construction and expected completion of its Thermo geothermal power project are on schedule for an October completion, and that the remainder of the tax equity capital for the Thermo project is expected to be funded timely in accordance with the binding agreement between Raser and Merrill Lynch.

Brent M. Cook, Raser’s Chief Executive Officer, commented, “Bank of America has been active in financing the energy sector, and we would expect this effort to continue with the acquisition of Merrill Lynch. We believe that the union of Merrill Lynch and Bank of America will create a strong investment and commercial banking company that will be in an excellent position to help Raser move forward with its aggressive growth strategy in the renewable energy markets. We look forward to continuing our positive relationship with Merrill Lynch as part of this new, larger full service financial services firm. We also intend to continue discussions with other sources of potential capital interested in investing in geothermal energy. We believe there are a number of potential capital sources that would be interested in participating as an additional partner in the financing of our future plants. We believe we are well-positioned both in our geothermal business and in our transportation business to meet the growing demands for clean energy and highly efficient use of that energy.”

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 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 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 belief in the ongoing financial stability of our financing partners; 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