Provo, UT, July 23, 2009 – Raser Technologies, Inc. announced today that it has restructured its existing $15 million line of credit, funded by certain stockholders of the Company.  In connection with the amended agreement, Raser paid off $2.9 million of the loan principal and $0.4 million of accrued interest.  The maturity date of the remaining principal balance of $10.5 million was extended until July 31, 2010 and can be repaid early without penalty. Lenders who have funded a majority of the outstanding balance also have the right to demand early repayment of all or part of the outstanding balance at any time after November 15, 2009.  The principal balance, and any accrued interest thereon, can be paid in the form of cash or equity securities at the sole discretion of Raser. The interest rate remains the same as previously announced.

Raser CEO, Brent Cook said, “This amended line of credit will allow us to focus more of our capital toward our development efforts. We believe we have several promising financing opportunities for growth that we expect to utilize in the near future.”

As was previously disclosed, the Company recently signed a term sheet with the Southern California Public Power Authority (SCPPA) for 110 megawatts of geothermal power.  This prepaid power purchase agreement would provide the majority of funds required to build the power plants to produce that power. We are seeking 30% clean energy grants authorized by the American Reinvestment and Recovery Act that would provide additional funding to cover up to 30% of the cost to build these plants.

Raser has also submitted an application to the Department of Energy for loan guarantees in connection with the financing of an additional 42 megawatt power project.  If the application is approved, Raser intends to couple this loan guarantee with clean energy grants to fund the majority of the 42 megawatts of power. This loan guarantee application is in the latter stages of the approval process. In addition, Raser is seeking additional loan guarantees and additional grants for other projects.

“The new administration is heavily focused on supporting efforts of renewable energy companies like Raser,” said Cook.  “We will continue pursuing these government incentives.  We believe the loan guarantees and other grants we have applied for are an attractive opportunity that can help our company grow.”

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 and Raser’s Symetron™ technology developed internally by its Transportation and Industrial segment. Raser’s Transportation & 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 related to our ability to accelerate or further our development plans, our ability to obtain the additional financing we need for plant construction, and our ability to repay our line of credit. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including risks associated with economic conditions, the availability of financing, and the other risks identified in Raser’s quarterly report on Form 10-Q for the quarter ended March 31, 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 Raser as of the date hereof, and Raser undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this release.

contacts

Raser Technologies, Inc.                    

Issa Arnita

Investor Relations

(801) 765-1200

investorrelations@rasertech.com

Hayden IR

Cameron Donahue

(651) 653-1854

cameron@haydenir.com