Raser Technologies Completes Initial Round of Venture Financing

PROVO, Utah--July 26, 2004--Raser Technologies Inc. (OTC BB: RSTG) (the "company") announces that it has completed the initial round of venture financing for $2.0 million. The concluded financing round included participation from select domestic and international investment funds.

Information on Raser Technologies Inc. may be found at: 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 10K filing dated March 30, 2004. These risk factors should be read in conjunction with this press 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.