Raser’s Thermo Project to Receive Recovery Act Grant Funds

Provo, UT, February 17, 2010 – Raser Technologies, Inc. (NYSE: RZ), an energy technology company, announced today that the U.S. Treasury has approved its renewable energy grant application for the Company’s Thermo No. 1 geothermal power plant.  The grant is provided by the U.S. Treasury Department under the Section 1603 renewable energy grant program created by the American Recovery and Reinvestment Act of 2009.  Raser should receive the funds within five business days.

 “We are very pleased with the approval of our application,” said Nick Goodman, Chief Executive Officer of Raser Technologies.  “These grant funds place the Company in a strong position to continue developing our extensive geothermal assets, and to deliver clean renewable energy.”

 As previously announced, the funds will go to retire debt and obligations relating to the Thermo No. 1 Project.  In addition to the grant funds, Raser is reaching out to new potential tax equity partners in an effort to capitalize on the remaining estimated $15 to $20 million of tax benefits at the Thermo No. 1 project, such as deductions for accelerated depreciation.  As part of the project restructuring announced in December of 2009, Raser became the sole owner of the Thermo No. 1 project, opening the door for Raser to bring in a new tax-equity partner in the future. 

 Kraig Higginson, Chairman of Raser Technologies, commented, “The approval of our grant application is a positive step in our restructuring and will help us move ahead with additional geothermal projects.  There is tremendous opportunity in our resource portfolio, and together with our technology and financing partners, we expect to play a significant role in the geothermal space going forward.  I believe that geothermal power will prove to be a major component in the overall renewable energy expansion, and that those who take advantage of the available technologies and financing options, will be well positioned to capitalize on these opportunities.” 

 The Section 1603 grant program is offered by the U.S. Treasury to qualified renewable energy projects in lieu of investment tax credits or production tax credits. The grant amount for most geothermal projects is equal to 30% of the authorized capital costs of the project.

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.

 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 strength and enforceability of our agreements; our belief about the positive financial impact this grant money will have on Raser and its Thermo No.1 partners; our belief about our ability to develop future geothermal projects and the geothermal industry in general.  These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, our ability to develop our geothermal portfolio; our ability to secure necessary funding to financing further development, the competitive environment and our ability to compete in the industry; 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 September 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 press release.

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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