Raser Developing 100 MPG Plug-in Hybrid Light Truck for Initial Release to Utility...

Raser Developing 100 MPG Plug-in Hybrid Light Truck for Initial Release to Utility and Government Fleets

Pacific Gas and Electric Company to Test and Demonstrate Raser's
E-REV Fleet Truck
PROVO, Utah--(Business Wire)--
Raser Technologies (NYSE ARCA:RZ) today announced it is developing
a 100 mile per gallon (mpg) light truck in addition to a 100 mpg SUV.
Raser's plug-in electric drive system is designed to allow light
trucks such as the Chevy Silverado, Ford F-150, or Dodge Ram to
achieve over 100 mpg in typical local daily driving with near zero
emissions, by using electricity instead of petroleum as the primary
fuel. The announcement comes as Raser nears completion of a 100 mpg
SUV demonstration vehicle, built in cooperation with a leading global
OEM, using the same drive system. Unlike most hybrid or even plug-in
hybrid vehicles that still rely mainly on a combustion engine, an
extended range electric truck (E-REV) using Raser's drive system is
propelled entirely by a powerful 200 kW peak electric motor using
lithium ion batteries. The truck is being developed in cooperation
with the Plug-In Hybrid Consortium Development
(www.HybridConsortium.org) and is designed to operate with zero direct
emissions during typical local daily driving.

In addition to their widespread use in utility and government
fleets, light trucks historically have been the most popular vehicles
sold in the U.S. However, with skyrocketing oil prices, truck sales
have dropped dramatically, while the cost of operating working trucks
in America's fleets has risen sharply. "Successful demonstration of
Raser's E-REV drive system in utility and government fleets may lead
the way to mass production of 100 mpg trucks and a revival in truck
sales," said James Spellman, Vice President of Transportation Business
Development for Raser Technologies.

Pacific Gas and Electric Company (PG&E) of California will test
and demonstrate one of the first E-REV pick-up trucks from Raser
Technologies. In February, PG&E signed an agreement with Raser
Technologies to purchase two plug-in hybrid SUVs using Raser's
electric drive system for early testing and demonstration.

"Plug-in hybrid electrics present tremendous potential to reduce
the environmental impact of our operations and fuel costs," said
Andrew Tang, senior director of smart energy web at PG&E. "PG&E has
one of the largest private fleets in the nation, which includes a
large portion of pick-up trucks. We are particularly excited to work
with Raser to demonstrate the benefits of applying plug-in hybrid
electric technology to light trucks."

Raser's plug-in hybrid trucks are expected to cut operational fuel
costs up to 75 percent by driving in all-electric mode during typical
daily fleet routes of up to 40 miles. When driving beyond the 40-mile
battery electric range, the E-REV trucks may continue up to 400 miles
by generating their own electricity.

"We applaud PG&E's leadership in further greening their fleet and
helping over 300 other fleets do the same. We realize how important
this kind of vehicle will be to fleets and look forward to
demonstrating the first 100 mpg fleet truck with PG&E. With
electricity priced about a quarter as much as gas, a practical
electrically powered pick-up truck is something this country needs
now," said David West, Vice President of Raser Technologies and
co-founder of the Plug-in Hybrid Development Consortium.

Raser has already established a development agreement with a
leading global automaker and a leading automotive integrator to build
a 100 mpg plug-in hybrid electric SUV using Raser's proprietary
electric drive system and award-winning Symetron(TM) technology.

PG&E owns and operates one of the largest utility clean fuel
fleets in the nation with more than 1,300 natural gas vehicles. PG&E's
clean fuel fleet consists of service and crew trucks, meter reader
vehicles and pool cars that run either entirely on compressed natural
gas or have bi-fuel capabilities. Over the last 15 years, PG&E's clean
fuel fleet has displaced over 4.1 million gallons of gasoline and
diesel, and helped to avoid 7,000 tons of carbon dioxide from entering
the atmosphere.

About Raser Technologies

Raser (NYSE Arca:RZ) is a publicly-traded, environmentally focused
technology licensing and development company operating in two business
segments. 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(TM) technology developed internally by its
Transportation and Industrial Technology segment. Raser's
Transportation and Industrial Technology segment focuses on
extended-range plug-in-hybrid vehicle solutions and using Raser's
award-winning Symetron(TM) 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 performance
and market applicability of our products; our beliefs about the status
and enforceability of the Company's intellectual property; our beliefs
about the strength of our existing and potential business relations in
the motor industry; our beliefs about the strength and enforceability
of our agreements, our beliefs about the performance capabilities of
our technology; our beliefs about the capabilities, expertise and
intentions of our partners; our ability to hire, train and retain key
personnel; our ability to successfully complete field testing of
Symetron(TM) technologies. 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; the strength of 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-Q for the quarter ended March 31, 2008, 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.

Raser Technologies, Inc.
Investor Relations
Richard Putnam, 801-765-1200
investorrelations@rasertech.com
or
Hayden Communications, Inc
Cameron Donahue, 651-653-1854
cameron@haydenir.com

Copyright Business Wire 2008