Raser Technologies Inc. Announces Results of Shareholders Meeting

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 the results of Raser's Annual Meeting of Shareholders held on June 27, 2006, in Provo.

The meeting was conducted by Kraig Higginson, Executive Chairman of the Board for Raser Technologies. Brent M. Cook, Raser's Chief Executive Officer, and Timothy D. Fehr, Raser's Chief Technical Officer, made presentations reporting on Raser's recent progress on several projects and on the company's strategy for commercialization of its technologies. Fehr's report included a brief status update on several development projects which included the following highlights:

Automotive

Raser's P-50 Integrated Starter Alternator, which was designed and developed for testing by a major automaker, was awarded the Frost & Sullivan Innovation of the Year Award in Drive System Technology based on its test performance and the additional research and due diligence previously conducted by Frost & Sullivan. Raser has completed initial testing of the ISA and the automaker has requested advancement to the next phase of testing.

Alternator

Recent test results of an alternator designed by Raser, targeted to improve performance in traditional, low-cost, claw pole type alternators, for use in heavy duty trucks and larger vehicles, demonstrated up to 50% improvement in power generated from the alternator. Raser is also working on other advanced alternator designs based on its own innovations in research and development.

Military

Fehr also reported on progress with military development projects. Building on the success of a Small Business Innovation Research grant that was completed in 2005, Raser was placed under contract through its Cooperative Research and Development Agreement with the Army to begin the design and development of prototypes for evaluation by the Army's National Automotive Center (NAC). Raser has submitted a multiyear proposal to the NAC with specific tasks defined to permit authorization over several years as development milestones are met and funding becomes available. 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 has already received a diesel engine intended for the project to begin integration development work.

Industry - Flexmod Controller Testing

Ongoing Department of Energy (DOE) funded research designed to demonstrate an economical way to reduce power consumption nationwide, especially in electric motors used in pumps fans and air conditioning. The DOE has funded research through the State Technologies Advancement Collaborative (STAC) to evaluate the potential for system efficiency improvement when driven by a flexible modular controller. Preliminary results from the testing of Raser's FLEXMOD(TM) controller by Advanced Energy suggest a valuable improvement in system efficiency is possible with the FLEXMOD(TM) design. Detailed information and market opportunities will be announced when the test analysis and report have been completed.

Business Plan

Cook introduced Patrick Schwartz as the new president of Raser and commented on his extensive experience in commercialization of new technologies. Cook also described the strategic benefits of the proposed acquisition of Amp Resources, provided a brief update on the status of negotiations, and indicated that the company would provide a more detailed update in the near future. Cook concluded his comments by thanking the shareholders for their continued support and confidence in the company as management executes its business plan.

A total of 33,425,315 common shares, approximately 66% of issued and outstanding shares, were represented at the Annual Meeting. At the meeting, more than 99% of shareholders voted in favor of Reynold Roeder, Barry Markowitz and Alan Perriton as Class I directors to serve for a three-year term that expires at the 2009 Annual Meeting of Shareholders and until their successors have been duly elected and qualified. Additionally, the shareholders voted to ratify the appointment of Tanner LC as the company's independent registered public accountants for the fiscal year ending Dec. 31, 2006.

Two new members of Raser's board of directors were introduced at the meeting: Barry Markowitz, formerly with DTE Energy Services, and Alan Perriton, former senior executive with General Motors. New board member Reynold Roeder, currently CEO and co-owner of LECTRIX, LLC and former VP at Pacificorp Financial Services, was recognized but unable to attend the meeting.

The management presentations were followed by a question-and-answer period. Copies of the presentations may be found on the company's Web site: www.rasertech.com.

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.

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 ability of the company to integrate its technologies into commercial and government applications; the company's beliefs about the performance capabilities of its technology; the company's beliefs regarding its research and development efforts; the company's beliefs about the advantages of alternator, controller and ISA technologies; the company's ability to commercially license its technologies; the company's beliefs about the benefits of the proposed acquisition of Amp Resources; the ability of the company to obtain funding for development activities; and the ability of the company to obtain military or commercial production contracts.

These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment of the alternator, ISA and controller technologies; our inability to obtain funding for development activities; 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 favorably conclude transaction discussions with Amp Resources 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.