Raser Technologies Inaugurates Utah Geothermal Plant with Advanced Technology That Can Make Geothermal a Major Source of the U.S. Energy Supply

Raser Technologies, Inc. (NYSE Arca: RZ), a leader in geothermal power generation, inaugurated late yesterday its first commercial-scale power plant, in Beaver County, Utah, demonstrating the viability of advanced technology that can make geothermal a major price-competitive resource for this country’s energy supply. The plant’s output has already been committed to supply electricity to Anaheim.

The company noted that the Beaver County plant, called Thermo, was built in only six months using its revolutionary modular construction design, greatly reducing the normal five-to-seven years typically required for traditional plant development and construction technology.

Raser uses technology developed by UTC Power, a United Technologies Corp. (NYSE: UTX) company, to generate electricity from underground water at temperatures much lower than other technologies. This opens the door to vast resources of underground, heated water that heretofore were believed to be useless for generating electricity. The company estimates that by tapping U.S. geothermal resources, the country could eventually generate one-third of its energy needs.

“This is a momentous occasion,” said CEO Brent M. Cook of Raser Technologies at the plant’s ribbon cutting ceremony. “This power generation plant with its ground-breaking, rapid-deployment design and construction system and UTC Power’s low-temperature technology can make geothermal a mainstream source of energy for the nation.”

Cook noted that the National Renewable Energy Laboratory (NREL) recent report estimates that the nation has approximately 150,000 MW of identified and unidentified shallow geothermal resources, enough to meet approximately one-third of the nation’s electrical demand.

“We are pleased to welcome here today,” he added, “Senator Orrin Hatch (R-Utah), who has been a powerful advocate for geothermal in the Senate; Lt. Governor Gary Herbert of Utah; and the many partners that have made this historic geothermal plant possible.”

At the ribbon-cutting ceremony, Senator Orrin Hatch said, "In May of this year, I stood at this very spot and broke ground for a new kind of geothermal power plant. Today, just six months later, I stand here again and look around in amazement to see a complete power plant. Raser's new modular power plant design has begun a revolution in the power industry. If Raser can continue to replicate this successful model, it will unlock this country's most abundant and practical sources of renewable energy.”

Lt. Governor Herbert added, “Here in Utah we are blessed with some of the largest reserves of geothermal energy in the nation. We should be developing this clean renewable source of energy. The state of Utah applauds Raser’s innovation that enables the commercial production of the important resource.”

In acknowledging the historic significance of this event, Ed Wall, Program Manager, Geothermal Technologies Program with the Department of Energy, said, "The Office of Energy Efficiency and Renewable Energy at the United States Department of Energy congratulates the parties involved with the Thermo project on their deployment of a low temperature geothermal power plant. This opens the way for developing low to medium temperature geothermal resources that were previously thought insufficient for commercial power generation. The versatile modular generation technology employed in this project can be tailored to match local resources and to accommodate changing loads, demonstrating the growing potential of geothermal energy to provide clean, renewable, domestic, baseload power."

Using its rapid-deployment construction system, Raser Tech took 50 binary cycle units manufactured by UTC Power and linked them together like a computer network to create the 10 MW facility.

Seven other plants, tapping into Raser’s geothermal resources, are in the works for the western U.S. with another underway in Indonesia.

Cook added, “With the major construction of Thermo completed, we will work over the next four to six weeks to complete the commissioning process and have the plant operational for the next 35 years.”

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™ 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™ 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 contain 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 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 developments of our geothermal power projects; our beliefs about our ability to obtain adequate development funding; our beliefs about our ability to fund the required escrow accounts; 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 30, 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.