Raser Technologies Receives Authorization for Military Development Project

PROVO, Utah--May 19, 2006--Raser Technologies, Inc. (NYSE Arca: RZ) ("Raser"), an energy technology company that develops and licenses advanced electric motor, controller and related technologies, today announced that it received Army authorization to proceed with the design and development of an Integrated Starter Alternator (ISA) for use in the U.S. Army's versatile HMMWV ("Humvee") vehicles. The authorization was provided through the recent addition of an Appendix to the existing Cooperative Research and Development Agreement (CRADA) between Raser and the US Army Tank Automotive Research, Development and Engineering Center, (TARDEC) which became effective on October 12, 2005.

The initial task for the 2006 statement of work is being performed under the CRADA. Initial funding of approximately $0.5 million has been appropriated for two follow-on tasks, and Raser is currently in contract discussions with the Army for funding of Raser's activities up to this amount during 2006. Raser anticipates that approximately $7.5 million in additional funding from Congress and the Army will be required in 2007 and beyond to prepare for military and commercial production of the ISA. The funding for such future activities in 2007 has not yet been appropriated by Congress or the Army.

"Raser is honored to work with the Department of Defense to improve the functionality of the Humvee," said Timothy D. Fehr, Raser's Chief Technology Officer. "The addition of a Symetron(TM)-enhanced ISA will be a further evolution in the lifecycle of this important military asset. Our ISA technology can be applied to the current fleet of Humvees as well as its eventual fleet replacement and larger trucks."

ISA technology offers three strategic advantages to the Humvee:

-- Greater onboard electrical generation: An ISA would eliminate the need for a separate, towed generator to power portable field equipment such as communications and medical units.

-- Improved fuel economy: Using idle reduction technology currently employed in commercial hybrid-electric passenger vehicles, an ISA-equipped Humvee would achieve fuel economy above the current 8 miles per gallon.

-- Stealth operations capabilities: The high torque available from a Symetron(TM)-enhanced ISA would allow limited-range stealth capabilities in an electric-only drive mode. This capability represents a highly strategic improvement to the current Humvee design, especially in urban settings.

"We are taking the developed technology of our P-50 ISA and applying it to the Humvee," said Brent M. Cook, Raser's Chief Executive Officer. "Our work on this project is a continuation of earlier design work we performed for the Army under a Small Business Innovation Research grant. This important project represents the next stage of ISA development, which will be suitable not only for military applications but for the commercial transportation markets."

About Raser Technologies

Formed in 2003, Raser Technologies 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 simple changes to existing products, but yields significant increases in power, performance and efficiency without the use of exotic materials. Further information on Raser Technologies, Inc. may be found at: www.rasertech.com.