Raser Technologies Executes Term Sheet with Southern California Public Power Authority for a Potential 110 MW Pre-Paid Power Purchase Agreement

PROVO, Utah--(Business Wire)--
Raser Technologies, Inc. (NYSE: RZ) announced that it has entered into a term
sheet with the Southern California Public Power Authority ("SCPPA") to sell 110
megawatts of renewable geothermal power to certain SCPPA member municipalities
in a pre-paid arrangement. The power plants would be built at Raser`s Thermo,
Utah site, over a three year period.

The term sheet establishes the basic terms of a Power Purchase Agreement, or
"PPA," under which Raser would develop 110 MW of geothermal power for sale to
SCPPA in a pre-paid arrangement. Under a pre-paid PPA, the purchaser of the
power pays for a portion of the expected power generation up front and then pays
a reduced monthly amount for the remaining power and environmental attributes.
The term sheet is non-binding, and either party can end discussions at any time,
for any reason, without liability to the other party.

Pre-paid PPAs are structured to take advantage of the municipalities` ability to
borrow at favorable rates to purchase power up front at a reduced rate. This
allows the municipalities to improve the economics of the transaction and
provide greater price stability over the life of the agreement, as well as
provide greater access to renewable energy projects. In turn, a pre-paid
structure allows developers like Raser to secure funding for their projects from
an alternative source in challenging economic times. The pre-paid PPAs would
provide Raser with greater flexibility for planning and developing its
commercial geothermal power projects.

Richard Clayton, Executive Vice President for Raser, said, "We are excited to
have signed this term sheet and be nearing completion of negotiations for this
significant power purchase agreement with SCPPA. We have had productive
discussions with SCPPA to date and hope to finalize the PPA in the near future."

About SCPPA

The Southern California Public Power Authority (SCPPA) is a joint powers
authority consisting of 11 municipal utilities and one irrigation district.
SCPPA members deliver electricity to approximately 2 million customers over an
area of 7,000 square miles, with a total population of 6 million. The Members
include the municipal utilities of the cities of Anaheim, Azusa, Banning,
Burbank, Cerritos, Colton, Glendale, Los Angeles, Pasadena, Riverside, Vernon,
and the Imperial Irrigation District. SCPPA was formed in 1980 to finance the
acquisition of generation and transmission resources for its members. Currently,
SCPPA has five generation projects and three transmission projects, bringing
power from Arizona, Nevada, New Mexico, Texas, Utah, and Wyoming.

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
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 about our ability to finalize a power purchase agreement,
our beliefs about preliminary drilling results; our beliefs about the potential
for geothermal power generation on our leased properties and its qualification
for certain federal tax credits; our beliefs about our ability to exploit the
available geothermal resources; our beliefs about the expected timing relating
to the testing and commissioning of our geothermal power projects; our beliefs
about a local utility`s ability to complete their work in a timely manner; our
beliefs about our ability to obtain adequate development funding; our beliefs
about our ability to utilize our technology and other available technologies to
produce electric power from the available resources; and our beliefs about the
geothermal market in general. 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; our ability to adapt our technology and third-party technology for
the intended applications; our ability to secure necessary permits; the strength
of our intellectual property; 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 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 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.
Issa Arnita
Investor Relations
(801) 765-1200
investorrelations@rasertech.com
or
Hayden IR
Cameron Donahue
(651) 653-1854
cameron@haydenir.com
or
Public Relations contact: Stern & Co.
Richard Stern
212 888-0044
richstern@sternco.com
Alison Simard
323-650-7117
arsimard@sternco.com

Copyright Business Wire 2009