Raser Technologies Enters into a Transaction with Three Major Lenders to Repay a Significant Portion of its Line of Credit

PROVO, Utah--Raser Technologies, Inc. , an energy technology company, today announced it has entered into a transaction with three of its line of credit lenders to facilitate Raser’s repayment of their loan principal and accrued interest totaling $5.4 million. The offering from Raser to the lenders includes 3,201,526 shares of common stock priced at $1.68 per share, which was at a premium to the closing price of the common stock on the day the offering to the lenders was completed. In addition, the lenders received warrants to purchase 1,600,762 shares of common stock with a strike price of $1.61.

The Company’s fourth major lender, Kraig Higginson, Raser’s Chairman, is precluded from participating in this offering due to certain regulatory restrictions relating to his position as an officer of the company. The Company intends to explore alternative structures for satisfying its obligations to this lender under the line of credit at a later date. Mr. Higginson has told the Company that he intends to enter into a similar transaction with Raser once an appropriate alternative structure is determined. The principal and accrued interest outstanding to Mr. Higginson currently totals $5.3 million.

In addition to the sale to the lenders, the Company is also required to offer up to 1,120,526 additional shares and warrants to purchase up to 560,258 shares of common stock to certain stockholders and former stockholders of Raser who have the right to participate in this offering pursuant to agreements entered into on June 30, 2009 as part of the Company’s registered direct equity offering. Each of the participation rights holders is entitled to purchase a number of shares and warrants equal to its pro rata portion of 35% of the shares and warrants offered on the same terms and conditions as the line of credit lenders. If all of these participation rights holders elect to participate in the offering to the full extent possible, Raser will receive additional gross cash proceeds totaling $1.9 million.

This press release does not constitute an offer to sell or a solicitation to buy any securities. This offering may be made only by means of a prospectus and a prospectus supplement. Copies of the prospectus supplement and the base shelf prospectus relating to the offering may be obtained by either contacting Raser at the address below or by accessing the Securities and Exchange Commission website, www.sec.gov.

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 regarding our ability to satisfy our remaining obligations under our line of credit. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the 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.