Raser Technologies Announces Closing of $25.5 Million Registered Direct Offering

PROVO, Utah--(Business Wire)--
Raser Technologies, Inc. (NYSE: RZ) announced today that it closed its
previously announced sale of approximately $25.5 million of its common stock and
warrants in a registered direct offering. Net proceeds to the Company from the
offering, after placement agent fees and offering expenses, are approximately
$23.8 million.

Calyon Securities (USA) Inc. served as lead placement agent and RBC Capital
Markets and JMP Securities LLC served as co-placement agents for the offering.

Raser CEO Brent M. Cook said, "We look at this as a compelling opportunity for
Raser to move forward with its development plans, as we continue to work on
several sources of funding for future power plants."

Raser believes the proceeds from the registered direct offering, together with
additional potential funding from strategic vendors and other partners, will
allow the Company to obtain plant construction financing for the power projects
it is currently developing. Raser recently announced that it had executed a term
sheet with the Southern California Public Power Authority ("SCPPA") for 110
megawatts (MW) of renewable geothermal power. The proposed agreement would
provide for the sale to SCPPA municipalities of all of the power generated by
the related power plants. SCPPA would also prepay a portion of the contracted
rate to fund a portion of the costs necessary to construct the 110MW of
capacity. Although the term sheet is nonbinding, Raser has had productive
discussions with SCPPA and expects to finalize the terms in the near future. The
company also announced that the Department of Energy ("DOE") cleared Raser`s
loan guarantee application to proceed to the next stage of due diligence. Raser
intends to continue to pursue these types of funding sources as well as other
sources for the construction of its planned power plants.

"In order to be in a position to obtain funding from these sources of capital
for our projects, we need to provide a portion of the capital for the power
plant development ourselves, primarily for well field development," added Mr.
Cook. "This direct offering, along with other strategic alliances are necessary
to move the company forward. In an economy where very few are obtaining growth
capital, the fact that Raser was able to complete this transaction demonstrates
the confidence investors have in our business. Raser remains strategically
positioned in two of the most exciting areas of our nation`s energy plans:
green, renewable energy and more fuel-efficient transportation."

This press release does not and shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities, nor shall there be any
sale of the securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any state or jurisdiction.

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 related to our ability to accelerate or further our
development plans and our ability to obtain the additional financing we need for
plant construction. 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.

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

Copyright Business Wire 2009