Raser Technology Reports 2005 Financial Results; Eventful Year Included Significant Progress in Product Development, Management Team Additions, National Exchange Listing and Intellectual Property Portfolio Enhancements

PROVO, Utah--April 14, 2006--Raser Technologies, Inc. (NYSE Arca:RZ) ("Raser"), an energy technology development and licensing company that advances electric motor, electronic motor drive, power generation and related technologies, today announced the filing of its annual report on form 10-KSB for the calendar year 2005 with the Securities and Exchange Commission. The document is available at www.sec.gov and may also be accessed through Raser's website, www.rasertech.com.

Revenue grew from $30,000 for the year ended 2004 to approximately $0.3 million for the year ended 2005. The increase in revenue is directly reflective of two government grants for development of Raser Symetron(TM)-enhanced solutions. Raser recorded a net loss applicable to common shareholders of approximately $14.6 million or $0.29 per fully diluted share in 2005 compared with a net loss applicable to common shareholders of approximately $11.3 million, or $0.24 per fully diluted share, in 2004. The 2005 loss represents increased investments in research and development, and higher administrative costs including fees paid to investment bankers. As of December 31, 2005, Raser had approximately $18.4 million in cash, restricted cash and short-term investments, and no long-term debt.

"Fiscal 2005 was an important year for Raser as we continued to gain traction in a number of industry segments with Raser Symetron," said Chief Executive Officer Brent M. Cook. "We have made meaningful forward strides during 2005 and into 2006 to capture the value of the Symetron(TM) portfolio of technologies and bring it to our target markets of transportation, industrial and power generation applications. We anticipate completing the testing phase with two customers during the first half of 2006 and then progressing toward the licensing phase. Our management team believes that by continuing these efforts, we will address specific market needs and deliver value to Raser shareholders."

Progress toward commercialization of Raser Symetron technology has been made on several fronts. These areas include:

Product Development: During 2005, Raser completed the first phase of a grant from the U.S. Army to design an Integrated Starter Alternator (ISA) in sizes appropriate for military vehicles. Raser anticipates additional funding decisions to be made during the first half of 2006. The Army development program was one of two ISA projects Raser is undertaking for customers in the transportation market.

Raser is also engaged in test evaluations of the Symetron(TM) technology for industrial applications. Raser management believes that the completion of the Amp Resources acquisition will accelerate the power generation market's adoption of Raser's technology by bundling Amp's heat transfer technology with Symetron(TM) to form an effective combination for geothermal and waste heat applications.

In addition to these ISA opportunities, Raser is actively promoting the development of Symetron(TM) technology in hybrid-electric vehicles. During 2005, Raser co-founded the Plug-In Hybrid Development Consortium, (the "Consortium") focusing on Plug-in Hybrid Electric Vehicles (PHEV). The Consortium is intended to close the gap between automotive vehicle designers and automotive technology suppliers to accelerate development and introduction of a commercially viable PHEV.

Management Team & Board Additions: Raser has significantly strengthened its market position through the addition of six highly experienced business experts and scientists to its management team and board of directors.

The management team has broadened its motor expertise through the addition of two new senior members:

-- Thomas Kaporch, SVP of Business Development. Mr. Kaporch is an internationally recognized authority on electronic motor drives, electric motors and power electronics and brings with him 25 years of industry experience. Prior to joining Raser, Mr. Kaporch served as President of Drives Research Corporation, a leading management consulting, market research and technology assessment firm specializing in electronic motor drives and electric motors. Kaporch also served as President of Yaskawa Corporation of America, the U.S. subsidiary of one the world's largest suppliers of AC electronic motor drives.

-- Dr. Sergei F. Kolomeitsev, Director of Advanced Motor Development. Prior to joining Raser, Dr. Kolomeitsev was manager of motor technology research and development at Valeo, one of the world's top automotive suppliers, where he was recognized as a senior expert in the areas of electric drive architecture, motor design and electromagnetic modeling. Kolomeitsev also served previously as senior scientist with Prestolite Electric and Dana Corp.

In addition to deeper technical skills, Raser has also benefited from the industry insights and business experience that four new board members bring to Raser. The four new board members are:

-- James A. Herickhoff, President, Chief Operating Officer and a Principal of Wold Talc Company. He is also Vice Chairman and member of the Board of Directors of Headwaters, Inc. and Chairman of its Compensation Committee.

-- Barry Markowitz, Former President of DTE Energy Services, a sister company to Detroit Edison and a subsidiary of DTE Energy. Prior to his position at DTE, Markowitz was a vice president for the Bechtel Group of Companies, focusing on power industry engineering and construction.

-- Alan Perriton, Former Officer & Senior Executive, General Motors Corporation, brings over 34 years of executive experience with GM in the U.S. and Asia.

-- Reynold Roeder, Chief Executive Officer and Co-Owner of LECTRIX, LLC, is a developer of merchant electrical transmission projects throughout North America. He is also the principal and owner of Roeder & Company LLC, a consulting firm specializing in energy-related matters and tax credit transactions.

Intellectual Property Protection: As a technology development and licensing company, it is essential that Raser protect its intellectual property on a global basis through patents. Raser received its first patent in early 2005, and the U.S. Patent and Trademark Office has since issued notices of allowance on three additional patent applications. The notices of allowance signify the Patent Office's intent to issue final patents. Raser has an additional eight U.S. and five international patent applications pending. Raser anticipates filing additional patent applications in 2006 to cover proprietary aspects of the Symetron(TM) portfolio of technologies.

Additional Accomplishments:

-- In April 2005, Raser consummated a preferred stock equity financing transaction with an aggregate of $20,000,000 before expenses of the offering of approximately $1,600,000.

-- On November 3, 2005, Raser began trading under the character ticker symbol RZ on the Archipelago Exchange(SM) (ArcaEx(R)), the nation's first totally open, all-electronic stock exchange. ArcaEx has since merged with the New York Stock Exchange resulting in Raser being listed as a New York Stock Exchange Group company (NYSE Arca:RZ).

-- On January 19, 2006, Raser announced a definitive agreement to acquire Amp Resources, LLC, an energy technology development and licensing company focused on large-scale commercialization of thermal energy conversion technologies currently implemented in geothermal and waste heat power projects. The combined companies expect to accelerate the adoption of Raser Symetron(TM) enhanced products among industrial and power generation suppliers and end-user companies by providing a compelling value proposition for organizations seeking renewable energy solutions.

The Amp Resources acquisition is expected to close in the second quarter of 2006 and will add another 29 professionals with excellent experience in energy technology development and licensing, and power plant development and operations.

About Raser Technologies

Formed in 2003, Raser believes that its pending patents and proprietary intellectual property cover breakthrough technologies. Raser's Symetron(TM) technologies more efficiently harness electrical energy in electric motor, controller, alternator and generator technologies. Application of Symetron(TM) generally requires minor changes to existing products, but yields significant increases in power, performance and efficiency without the use of exotic materials. Further information on Raser may be found at: www.rasertech.com.

Cautionary Note Regarding Forward-Looking Statements

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 the following: the Company's beliefs about the benefits of the proposed acquisition of Amp Resources, LLC; the Company's expectations that the acquisition will be accretive to Raser's results; the Company's beliefs about the performance capabilities of its technology and the technology of Amp Resources; the Company's ability to commercially license the technology; the ability of the Company to hire and retain employees sufficient to accelerate engineering and testing; and the Company's beliefs regarding its research and development efforts and the commercial impact of current government contracts. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, difficulties encountered in integrating merged businesses, uncertainties as to the timing of the acquisition; approval of the transaction by the stockholders of the companies, if necessary; the satisfaction of closing conditions to the transaction, including the receipt of regulatory approvals; the competitive environment of the motor, controller and power generation industries, and competitive responses to the proposed acquisition; our inability to achieve commercial acceptance of our technology, our inability to compete effectively in the marketplace; the strength of our patent and pending patents and other intellectual property and those of our competitors; our inability to protect our intellectual property; our inability to attract, train and retain key personnel, and such other risks as identified in our annual report on Form 10-KSB for the year ended December 31, 2005, as filed with the Securities and Exchange Commission, and all subsequent filings, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. 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.