Transcript

Hi, I’m Brent Cook, CEO of Raser Technologies. Welcome back to another “Up to Speed” message update from Raser management.

As I mentioned in our first volume of “Up to Speed”, this program will provide you with a regular update on exciting, new company events in between shareholder meetings.

Today we’ll be addressing two recent company events:

1. Raser’s listing on the Pacific Exchange

and

2. Raser’s signing of the Cooperative Research and Development Agreement, or "CRADA", with the U.S. Army's National Automotive Center.

Today you’ll get a chance to meet our Chief Financial Officer, Bill Dwyer, and our Chief Technology Officer, Tim Fehr.

One of the most important events for us recently is the listing on a national exchange. Many of you may be following some exciting news recently regarding the Pacific Exchange. We’ve decided to list with this exchange for some very important reasons which I’d like to share with you now.

Let me introduce you to our CFO, Mr. Bill Dwyer, who will provide some background on the exchange and our recent listing.

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Bill Dwyer

Hi, I'm Bill Dwyer, CFO of Raser Technologies.

I’d like to address now our recent listing on ArcaEx® and what that means to us as a company and to you as shareholders.

Our primary motivation for moving to the Pacific Exchange is to expand our investor base. Archipelago, sometimes referred to as ArcaEx®, is the electronic trading platform that is used by the Pacific Exchange to facilitate a fair marketplace with strict adherence to price and time priorities for all trades. In order to obtain this listing on the Pacific Exchange, we had to meet several stringent criteria including capitalization requirements, complete financial and disclosure reporting as well as corporate governance practices.

Several investors have asked about the implications of this listing on short selling of Raser common stock. In accordance with SEC rules, transactions on ArcaEx® will be subject to the “tick” test rule for short sales which generally prohibits short sales on down ticks. This “tick” test did not apply to our previous listing as an Over the Counter Bulletin Board quoted issue. It is the responsibility of each brokerage firm to confirm compliance with this rule.

We are working with several financial internet information sites to connect our historical news items and trading data as RSTG with our new listing as RZ on the Pacific Exchange. Hopefully you will see this historical information connected to the RZ trading symbol as sites such as MSN®, Yahoo!® and CBS Market Watch in the near future.

Finally, several investors have asked about the ability to place “good until cancelled” order on ArcaEx®. This order type is not available at the time of our listing on the Pacific Exchange, but we expect it to be implemented by ArcaEx® in the near future.

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Brent Cook

Many of you have already asked some good questions about our exchange listing. Let me share some answers to a few of the most frequently asked questions.
First, I’d like to address now our recent listing on ArcaEx® and what that means to us as a company and to you as shareholders. Perhaps the best way to do this is to outline for you the most frequently asked questions.
What is the ArcaEx®, and Why Did Raser choose to list with this exchange?
The ArcaEx® is an electronic trading platform untilized by the Pacific Exchange. It is a two tier trading exchange: Tier I firms qualify as “national listed exchange” stocks. Raser is a Tier I listing.

Raser accepted this invitation because of the increased availability to institutional investors and investors in general and the decreased cost of keeping public filings current.

What are the implications of the NYSE merger with ArcaEx®?

The merger is not complete and things can change prior to SEC shareholder approval. However, assuming the merger is approved and there are no surprises along the way, we anticipate there will be no implications on Raser. Raser will continue to be an ArcaEx® listed stock, but under the NYSE Group umbrella. Raser will trade on the ArcaEx® platform and be subject to ArcaEx® surveillance and continuing listing requirements. Raser will continue to review opportunities to expand its investor base and will explore further listings as they make sense.

Does ArcaEx® qualify as a major exchange for funds and institutions that are restricted to purchasing only stocks listed on major exchanges?

The Pacific Exchange/ArcaEx® is a national securities exchange and therefore meets the qualifications of many mutual funds and other investment pools. Raser cannot represent that the move to ArcaEx® will be the means of attracting such institutional investments, but it clears a significant hurdle for most of these funds.

Does a national market listing on ArcaEx® prevent Raser from listing on other national exchanges?

No. Raser can be simultaneously listed on ArcaEx® and other national exchanges. Raser will seek to do so when and if it makes sense for Raser investors.

What is the cost of the listing?

The listing fee has been waived for Raser because the company is not a new listing, but is an existing reporting company.

What are the implications for analyst coverage?

Listing on a national securities exchange provides Raser with additional exposure to mutual funds and other investment pools. Most analysts will not cover OTC stocks and listing on a national exchange clears a significant hurdle for such analysts.

As such, Raser’s exposure to analysts will likely increase. Although analysts make their own determinations regarding the companies they cover, Raser will likely have a much easier time gaining analyst coverage because of the listing.

How does this listing affect broker solicitation limitations?

Brokers will be free of the investor suitability forms, etc. once the stock is listed on Pacific Exchange (a "national securities exchange") for trading on the ArcaEx® system. It's the responsibility of each brokerage firm to confirm this with its compliance and/or legal department.

Additional info that may be of interest:
Raser currently has 2 registration statements that it is required to keep effective every quarter. This requirement would continue several years, for so long as Raser is an OTC listed stock. This is a costly process. Raser will no longer be required to file related updates because of the listing on a national exchange. Instead, our quarterly and other SEC filings become incorporated by reference into the registrations.

Also, future financings will be significantly cheaper, simpler, and quicker in terms of filing what is referred to as a form S-3 instead of a form SB-2.

Does a national market listing on ArcaEx® prevent Raser from listing on other national exchanges?

No. Raser can be simultaneously listed on ArcaEx® and other national exchanges. Raser will seek to do so when and if it makes sense for Raser investors.

Now I’d like to introduce you to our Chief Technology Officer, Mr. Tim Fehr. Tim Fehr played an important role at Boeing before joining Raser Technologies. While at Boeing, Tim led thousands of engineers and worked on several important projects including the 777 aircraft and their Phatom Works group. Tim will now get you Up to Speed about the Cooperative Research and Development Agreement between Raser and the U.S. Army.

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Tim Fehr

Hello, I’m Tim Fehr, Chief Technology Officer for Raser Technologies. Recently, Raser entered into a Cooperative Research and Development Agreement with the U.S. Army. This was announced in a press release that gives you the basic details of this important event. I’d like to give you some additional information that will help you understand what this means and why it is important to Raser.

As you may be aware Raser has been working with the Army’s Tank and Automotive Research and Development Center called TARDEC through a Small Business Innovative Research award. The work involved conceptual design and performance projection for an Integrated Starter Alternator, or ISA, for military hybrid vehicles. We were encouraged to design for the HMMWV for the small size vehicle. We were also encouraged to design for a medium sized truck in the Family of Military Tactical Vehicles as a larger sized vehicle. The results of the study were attractive to the Army Sponsors.

By entering in to a Cooperative Research and Development Agreement, or CRADA, the Army has greatly expanded the opportunity for Raser to adapt its technology in a broader way.

This CRADA is with the Army’s National Automotive Center or NAC. The NAC is responsible for the Army’s research and development of future combat vehicles.

This Cooperative Research and development agreement does several things.

1. It establishes a long term working relationship with the U.S. Army

2. It provides for the protection of Raser’s intellectual property.

3. It allows Raser to participate in confidential advanced planning and design programs.

4. It greatly expands the opportunity for Raser to apply its technology across a broader range of military vehicles

5. It increases Raser’s level of security and confidentially with the Army so Raser can participate in higher-level technology and vehicle design discussions.

6. It puts Raser in a more proactive position to recommend the application of its technology for new and emerging vehicle designs.

Most importantly, this has a direct impact in potential revenue to Raser through commercial production opportunities.

For those of you unfamiliar with military terms, a Cooperative Research and Development Agreement or CRADA, is an agreement between commercial companies in industry such as Raser Technologies, and a government agency to allow them to work together on high level projects. They were created initially as part of the Technology innovation Act of 1980 and they allow the Federal government and non-Federal partners to…

1. optimize their resources,

2. share technical expertise in a protected environment,

3. and share intellectual property emerging from the effort,

4. and speed the commercialization of that technology

5. and it allows all parties to keep research results emerging form the CRADA confidential

6. allows government and their partner to share patents and patent licenses in jointly developed areas

7. while allowing one partner to retain exclusive rights to a patent or patent license.

This is a significant milestone that allows Raser to expand and accelerate the commercialization of its technology for military and non-military use. It also allows us to participate in the design and development of future military vehicles that would benefit from Raser’s recent and on-going developments in advanced electromagnetics technology.

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Brent Cook

I’m sure you’ll agree with me that these recent events are important to Raser and its commitment to seeing our technology in the market place.

Thank you for joining us again for another volume of Up to Speed. Until next time, this is Brent Cook with Raser Technologies.
 

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 the following: the Company's beliefs about the performance capabilities of its technology; the Company's ability to quickly license the technology; the Company’s ability to enter into, and benefits of, joint venture, mergers, acquisitions or other strategic transactions; the ultimate result of development agreements and executed contracts; and the Company's beliefs regarding its research and development efforts. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, our inability to compete in the transportation, industrial and power generation industries with its technologies; our inability to achieve commercial acceptance of our technology, our inability to meet government technical and contractual requirements, the strength of our patent and pending patents and other intellectual property and those of our competitors, our inability to protect our intellectual property, our inability to attract, train and retain key personnel, and such other risks as identified in our quarterly report on Form 10 -QSB for the quarter ended June 30, 2005, as filed with the Securities and Exchange Commission, and all subsequent filings, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. 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.