Raser Technologies Initiates Test Demonstration Program

PROVO, Utah--Dec. 22, 2003--Raser Technologies Inc. (OTCBB: RSTG) announces that it has installed its proprietary Symetron(TM) Technology into a leading automobile manufacturer's electric motor. The intent of this test program is to install Symetron(TM) Technology into the manufacturer's current electric motor, and evaluate performance improvements. The test demonstration protocol began with an extensive paper test, which predicted significant improvements. This first phase justified advancing to installation and dynamometer testing at the automobile manufacturer's facility. Participating in the tests are several leading automobile and motor manufacturers, which share a common interest in the project.

Raser Technologies' CEO Kraig Higginson remarked, "Conducting testing programs for potential customers is the first step in developing licensing agreements with automobile and industrial electric motor manufacturers. Early results from test demonstration programs show that the Symetron(TM) Technology is enabling up to a 300% increase in baseline horsepower and torque, while maintaining efficiency. Following a test demonstration, we anticipate motor manufacturers will conduct additional testing for specific current and future applications. These tests are key to determine the amount of improvement available to current motors, and in developing new higher performance motors to meet manufacturers' demands."

Founded in 2001, Raser Technologies believes that its patents cover breakthrough electric motor technology. This technology more effectively harnesses one of nature's most useful forms of energy and delivers it in a low-cost, lightweight electric drive system for industry, home and electric vehicles.

This press release may contain forward-looking statements including the company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, realization of customer contracts, strength of the company's pending intellectual property, changes in anticipated earnings of the company and other factors detailed in the company's filings with the SEC. In addition, the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The company does not undertake to update them; however, it may choose from time to time to update them and if it should do so, it will disseminate the updates to the investing public.

A list of the potential risk factors that may affect the company's prospects may be found in the company's most recent 8K filing dated Oct. 1, 20034, 2003. These risk factors should be read in conjunction with this release.