Now Expects to Generate 130 MW of Power Available For Sale By The End of 2012

Updated Geothermal Power Plant Approach Provides Company with Strong Projected Average Economics

Provo, UT, September 9, 2009 –Raser Technologies, Inc. (NYSE: RZ), an energy technology company, today provided an update to its geothermal power generation strategy, assumptions and anticipated timelines.

Based on the evaluation of its existing construction, and advances in technology, Raser has adjusted its rollout expectations.  Raser now plans to add 40 megawatts of electricity available for sale in each of 2010, 2011 and 2012, bringing the total megawatts available for sale by the end of 2012 to 130. These projects are dependent on the availability of funding. If Raser does not secure adequate funding for well field development within the next few months, it will have to adjust this plan. Raser has updated its approach to now use larger binary cycle generators, along with the smaller units currently in operation at Raser’s first power plant, the Thermo No. 1 Plant (Hatch Plant).  Raser expects to use anywhere from two to eight of the larger generators per plant, in some cases coupled with smaller units as Raser deems appropriate.  Raser’s current geothermal power plant uses 50 smaller generators.  Raser projects each power plant will provide up to 20 megawatts of electricity available for sale to the utilities compared to 10 megawatts of electricity, which will be the total for sale from Raser’s first power plant, once at full capacity.

“These changes should improve the overall economics of our power plants moving forward,” said Richard Clayton, Principal Executive Officer. “Throughout Raser’s development planning, we had intended to utilize larger generating units as they became available.  Our current supplier has made significant advances in making larger units available. We are also reviewing similar equipment from other manufacturers.”

The updated business plan is anticipated to improve the projected average plant economics.  Additional information regarding Raser’s modified power plant approach can be found in the Securities and Exchange Commission Form 8-K, which was filed by Raser this morning and can be found at http://www.rasertech.com/8K.

About Raser Technologies
Raser (NYSE: RZ) 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 the potential for geothermal power generation on our leased properties; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the development and completion of our geothermal power projects; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; our beliefs about the geothermal market in general; our beliefs about our ability to construct power plants; our beliefs about the strength and enforceability of our agreements; 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 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 beliefs regarding the revenues and costs associated with an average geothermal power plant including the development and management fees that Raser would receive in connection with such average plant; and our beliefs about the performance and market applicability of our products; and our beliefs about the status and enforceability of our intellectual property. 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; 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, 2009, 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 report.
contacts

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

Hayden IR
Cameron Donahue
(651) 653-1854
cameron@haydenir.com