Raser Technologies Announces Additional Extension Agreement with Thermo No. 1 Financing Partners

PROVO, Utah--Raser Technologies, Inc. , an energy technology company, today announced it has signed an additional extension agreement until November 2, 2009, with its financing partners for the Thermo No. 1 plant. This extension will allow the parties time to finalize amendments to the Thermo Financing Agreements.

The contract extension amends the date by which Raser and its partners anticipate finalizing an updated agreement on the structure and final completion date of the Thermo No. 1 plant. The previous deadline was October 16, 2009, and with the new agreement, the date has been reset to November 2, 2009. The Thermo Financing Agreements provide project financing and tax equity capital for the project, and the Company is amending its Thermo Financing Agreements in order to be consistent with recent tax law changes under the American Recovery and Reinvestment Act of 2009. The Company is also amending other provisions and deadlines in the Thermo Financing Agreements related to bringing the project to full capacity. Raser expects to reach full capacity of 10 MW by the end of 2009.

“We continue to make progress on the amendments and are working closely with our financing partners,” said Richard Clayton, Principal Executive Officer. “Finalizing these amendments will allow us the flexibility we need to complete Thermo No. 1 and to continue developing our extensive geothermal capabilities and the infrastructure necessary to deliver clean, renewable energy efficiently and cost-effectively now and in the future.”

About Raser Technologies

Raser is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. 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: our beliefs about our ability to exploit available geothermal resources; our beliefs about our well field completion plan; our beliefs about the expected timing relating to the restructuring of our financial agreements; our beliefs about the economic benefits of contemplated financing structures, and our beliefs about our ability to qualify for government incentives. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to secure necessary permits; our ability 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, 2009, as filed with the Securities and Exchange Commission, and all subsequent filings.

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 report.