Raser Technologies Announces Closing of $25.5 Million Registered Direct Offering

Provo, UT - July 7, 2009 - Raser Technologies, Inc. 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.

Raser 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.

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.

Contact:

Raser Technologies, Inc.
Issa Arnita
Investor Relations
(801) 765-1200
investorrelations@rasertech.com

Hayden IR
Cameron Donahue
(651) 653-1854
cameron@haydenir.com