New Agreement Extends Final Testing to June 30, 2010

Provo, UT, February 16, 2010 – Raser Technologies, Inc. (NYSE: RZ), an energy technology company, announced today that it has reached an agreement with project financing partners to extend the final performance and completion test of the Thermo No. 1 Project to June 30, 2010. 

Chief Executive Officer, Nick Goodman, stated “We are pleased that our financing partners have agreed to this extension.  We are working hard to optimize the Thermo No. 1 power plant.  I am happy to report that the output of the plant continues to increase as we make certain modifications.”

Raser recently recompleted four wells to reduce the inflow of water from the coolest formations and increase the average temperature of water entering the plant.  The Company has also made changes to the plant generators to improve efficiency as well as other modifications to increase the overall output of the plant.

“The recompletions have begun to show positive results,” said Ben Barker, Vice President of Resource Management.  “Geothermal aquifers store a lot of fluid and we have a backlog of mixed water at less than optimal temperature that needs to be produced before we see the full benefit.  This extension should give the reservoir time to respond and begin to show its true potential.”

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 potential for the Thermo No. 1 well field to heat up;  our beliefs about the strength and enforceability of our agreements;  our beliefs about the acceptability of our grant application by the federal government, the amount of funds we our eligible to receive under the grant, and the ability of the government to promptly process our grant application and make timely payment of any grant funds; 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, the risk that our grant application could be delayed, the risk that the federal government may not timely process our application, the risk that the federal government may deny all or part of our grant application, or determine that we are not eligible to receive the full amount we estimate we are eligible to receive; 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