Raser Technologies Unveils Two Electric Vehicles in Test Demonstration Programs

PROVO, Utah--May 10, 2004--At the National Clean Cities Vehicles show in Ft. Lauderdale, Fla., on May 3-5, 2004, Raser Technologies (OTC BB: RSTG) unveiled two electric vehicles currently in its test demonstration program. Raser demonstrated a battery-powered light utility truck equipped with a Symetron(TM) enhanced motor. "This street test demonstration drive preliminarily shows that a small inexpensive industrial electric motor, enhanced by Symetron(TM) technology, can become powerful enough to drive a vehicle and haul its full 1200 LB payload up a steep grade," said David West, VP marketing for Raser Technologies.

People lined up for a chance to "test drive" the all-electric truck including an acceleration timed test drive by Clean Cities Regional Director Ernie Oaks. West added, "We were quite surprised by the excitement generated by this popular little truck at the show. The public has been waiting a long time for electric vehicles they can afford and that can run cleanly with zero emissions. Selling at under $12,000 the electric truck is ideal for maintenance crews, fleets, campuses, and parks. All-electric vehicles can operate more economically in a fleet by utilizing low-cost electric power priced as low as 24 cents per equivalent gallon in some states. One popular feature of this versatile truck is that it comes with optional cargo cab, scissor lift, dump and tipper configurations. It is ideal for cities, universities, and others fleets looking for an inexpensive, clean, electric vehicle with low maintenance costs."

Raser also showed the same size motor installed in a Polaris snowmobile designed for use in sensitive areas such as Yellowstone National Park. Raser exhibited its breakthrough electric motor technology at the show including its new pancake motor design called P-2, ideal for integrated starter generators and hybrid truck systems which the company believes will offer high torque and economy without the use of permanent magnet materials.

Cities' managers and fleet operators can play a leadership role in choosing clean electric vehicles for their fleets. This test demonstrates how Symetron(TM) technology provides not only the power expected by consumers but can also help make clean zero emission vehicles more affordable.

"We feel that Symetron(TM) technology can play a big role in helping fleet managers not only reduce their emissions by choosing electric or hybrid electric vehicles, but also help them to reduce their operating and maintenance costs," said Kraig Higginson, CEO Raser Technologies. Symetron(TM) technology is also being applied to larger motors for rapid transit buses, delivery trucks, and other fleet vehicles.

The National Clean Cities organization is part of the U.S. Department of Energy and focuses on helping to provide America's cities with clean vehicle alternatives.

Information about Clean Cities: http://www.eere.energy.gov/cleancities/

Raser Technologies (http://www.rasertech.com)

Founded in 2001, Raser Technologies believes that its pending 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. 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, 20044, 2003. These risk factors should be read in conjunction with this release.

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 patents, validation of the technology, 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.