Raser Provides Update on Department of Energy Loan Guarantee Program

PROVO, Utah--(Business Wire)--
Raser Technologies, Inc. (NYSE:RZ), an energy technology company, announced
today that it has received notice from the Department of Energy ("DOE") that its
loan guarantee application for its "East Thermo" project has been denied. In its
notice, the DOE stated "we believe that the East Thermo project possesses
fundamental strength, but would benefit from continued development…."

Project East Thermo is a future phase Thermo-area proposed development,
approximately six miles to the east of Raser`s Thermo No. 1 plant. Raser
submitted the loan guarantee application in an effort to extend its range of
potential financing options, which also includes potential pre-paid power
purchase agreements. Raser recently announced that it had entered into a term
sheet with the Southern California Public Power Authority ("SCPPA") for a
pre-paid power purchase agreement that would cover Raser`s next 110 MW to be
developed out of the Thermo resource.

"We understand the DOE`s decision and remain confident in our ability to fully
develop our resources. We have other projects that are further along in the
development process than East Thermo and are in better positions at this time
for both this and other loan guarantee programs," stated Raser`s principal
executive officer Dick Clayton. "We are moving forward with SCPPA on the
pre-paid power purchase agreement and believe that, if finalized, it will assist
us in our development efforts at Thermo for the foreseeable future. We are also
evaluating the recommendations made by the DOE and determining when the timing
may be right to re-submit the East Thermo application."

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.
Raser`s Transportation and 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 June 31, 2009, as filed with the Securities and
Exchange Commission, and all subsequent filings.

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