Raser Technologies, Inc. Set to Join Russell 3000 Index

PROVO, Utah--June 29, 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 they have been selected to join the Russell 3000(R) Index when Russell Investment Group reconstitutes its family of U.S. indexes on June 30, according to a preliminary list of additions posted Friday on www.russell.com.

Membership in the Russell 3000, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000(R) Index or small-cap Russell 2000(R) Index as well as the appropriate growth and style indexes. Russell determines membership for its equity indexes primarily by objective, market capitalization rankings and style attributes.

"I am delighted that Raser has been selected for inclusion in the Russell 3000 Index. I believe that this membership will enhance our exposure within the investment community, and expect this to be a positive development for our shares and for our shareholders," said William Dwyer, Chief Financial Officer for Raser. "As we begin to capitalize on our technology innovations and positive test results we position ourselves for sustainable technology leadership in the marketplace for rotating electro-magnetic applications in transportation, industrial and power generation segments."

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading $3.8 trillion in assets currently are benchmarked to them. Investment managers who oversee these funds purchase shares of member stocks according to that company's weighting in the particular index.

Annual reconstitution of Russell indexes captures the 3,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization to create the Russell 3000. The largest 1,000 companies in the ranking comprise the Russell 1000 while the remaining 2,000 companies become the widely used Russell 2000. These investment tools originated from Russell's multi-manager investment business in the early 1980s when the company saw the need for a more objective, market-driven set of benchmarks in order to evaluate outside investment managers.

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.

About Russell

Russell, a global leader in multi-manager investment services, provides investment products and services in 44 countries. Russell manages more than $167 billion in assets and advises clients worldwide representing $2.4 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.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 performance capabilities of its technologies; the Company's ability to commercially license its technologies; and the Company's continued inclusion in the Russell 3000 Index.

These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, difficulties in obtaining commercial acceptance of our technologies, the strength of our patent and pending patents and other intellectual property and those of our competitors, the ability of the Company to meet the criteria for listing on the Russell 3000 Index and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 2006, 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.