Raser Technologies Inc. Reports Second-Quarter 2006 Financial Results

PROVO, Utah--July 28, 2006--Raser Technologies Inc. (NYSE Arca: RZ) ("Raser"), an energy technology company that develops and licenses advanced electric motor, controller and related technologies, today reported financial results for the quarter ended June 30, 2006. The company reported a net loss of approximately $5 million, or $0.10 per common share, for the 2006 quarter compared to a net loss of approximately $7.9 million, or $0.16 per common share, for the comparable 2005 quarter. Raser recorded revenue of $34,409 during the 2006 second quarter compared to $148,961 in revenue during the comparable 2005 quarter. The company ended the 2006 quarter with cash and notes receivable totaling $13.3 million. Full financial statements for Raser on Form 10-Q are available in the Investor Relations section of the company's Web site, www.rasertech.com, and in the EDGAR filings at www.sec.gov.

"We continued to make progress on our three-pronged strategy to commercialize our Symetron(TM) technology," said Chief Executive Officer Brent M. Cook. "We have identified opportunities in the transportation, industrial, and power generation markets for this revolutionary technology, and market reaction has been favorable. Raser's initial focus and most extensive development work has been on transportation applications. We have developed and tested an alternator that can produce up to 56% more electrical current than a conventional design. Discussions have begun with potential customers for licensing of this technology."

"We have also developed an integrated starter alternator (ISA) that we expect to test at a customer site in the current quarter. Internal tests of our design have demonstrated power and efficiency levels that can be beneficial to automobiles and trucks in either a conventional or hybrid configuration," stated Timothy Fehr, chief technology officer for Raser. "Surging fuel prices have sharpened interest in hybrids and ISA technology, and we expect to participate in the growth of this emerging industry."

"We believe the range of potential industrial applications for Symetron(TM) technologies is broad and deep," said Cook. "We see an attractive opportunity in the air conditioning segment, where demand for greater energy efficiency has been mandated through implementation of 13-SEER standards earlier this year. This new standard represents a 30% increase in energy efficiency from the prior 10-SEER regulation. Our work with Advanced Energy for the U.S. Department of Energy is expected to be completed in the third quarter, and should provide additional insight into the application of Symetron(TM) technology for the HVAC market."

In the Power Generation market segment, we agreed to acquire Amp Resources LLC in an acquisition agreement dated Jan. 19, 2006. On June 16, 2006, Amp Resources delivered a termination notice of the acquisition agreement. We believe the contractual conditions for termination have not been met and are exploring our options and evaluating our rights with respect to the acquisition agreement. The parties continue to discuss alternatives regarding the transactions contemplated by the acquisition agreement. The proposed acquisition and its purported termination involve risks and uncertainties that are more fully set forth under the caption "Risks Related to the Proposed Acquisition of Amp Resources and its Purported Termination" under "Risk Factors" in Item 1A of Part II of our quarterly report on Form 10-Q.

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 motors, controllers, 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 performance and market applicability of our products, including our alternator, ISA and HVAC motor technologies; the completion of the Amp Resources acquisition; the validity of Amp Resources' purported termination of the acquisition and our rights related thereto; the outcome of ongoing discussions with Amp Resources regarding the acquisition and alternative transactions; our beliefs about the performance capabilities of our technology; our ability to commercially license our technology; our ability to hire employees sufficient to accelerate engineering and testing; and our beliefs regarding our research and development efforts.

These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the risk that we may be unable to complete the Amp merger or any alternative transaction; the competitive environment and our ability to compete in the ISA, alternator and power generation industries; our inability to achieve commercial acceptance of our technology; 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 quarterly report on Form 10-Q for the quarter ended June 30, 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.