Raser Secures 50-Year Geothermal Lease.

Raser Enters Development Phase of Geothermal Power Generation Business

Business in Transportation, Industrial and Military Sectors to Continue

PROVO, Utah -- Raser Technologies, Inc. (NYSE Arca: RZ) "Raser", a publicly traded technology licensing company focused on improving the efficiency of rotating electromagnetic and heat transfer applications within the Transportation, Industrial and Power Generation markets, today reported that it has secured geothermal rights to certain Nevada properties owned by Truckee River Ranches, LLC, under the terms of a 50-year lease agreement.

In exchange for $25,000 in cash and 25,000 shares of restricted Raser common stock, Raser may begin development and construction of geothermal power plants on Truckee's three major ranches north of Las Vegas. Upon completion of the first such plant, Truckee will receive an additional 25,000 restricted shares. Also, Truckee will receive a $50,000 advance against undisclosed total royalties in projects developed on these properties. The agreement allows for Raser to develop approximately 11,600 acres of fee simple lands and pledges cooperation and priority in any geothermal rights of Truckee that may exist on the remaining ranch acreage. These ranches contain approximately 3 million acres of owned and leased properties, much of which lies within the US Geological Survey's "known geothermal resources area" (KGRA). KGRAs are either areas of obvious geothermal activity such as hot springs designated by the US Geological Survey (USGS), or areas where applications to lease overlap to such a degree as to indicate strong geothermal potential.

Dr. Carl F. Austin, a consulting geologist to Raser with 40 years' experience in the geothermal energy business, said, "Some of the largest known geothermal sites are found in Nevada and California. The area being studied for Raser holds the potential to be a truly significant geothermal resource. Many people have tried to get their hands on these properties over many years. I'm pleased to be working with Raser Technologies on such an exciting opportunity."

Austin pointed to the many hot springs, hot wells and even the well-known "Diana's Punch Bowl" (Devil's Punch Bowl) a currently active hot spring, located within the deeded portions of the ranches.

Brent M. Cook, CEO of Raser, stated, "This lease offers Raser an excellent starting point to launch into the geothermal power generation spaces utilizing our recently acquired heat-transfer technologies. We expect to move rapidly into the development phases of this exciting resource during 2007. We believe that developing geothermal power projects will be a significant addition to Raser's business."

The recently secured heat-transfer technology involves binary cycle generation, in which the steam or water from the geothermal reservoir never comes into direct contact with the blades of the turbine generator. This method has a competitive advantage when used for water-based geothermal resources of generally low temperature, ranging from approximately 93 to 183 degrees C, but it works at higher temperatures as well. In a binary system, warm geothermal fluid is pumped to the surface and channeled into heat transfer equipment. The geothermal water is then used as a source to heat a "working fluid," which then vaporizes to turn the turbine generator. After the heat transfer process is complete, the now cooler water is returned to the reservoir. The primary technical advantage of the binary method is its ability to efficiently convert more commonly found low temperature water resources into power through the use of working fluids that have a low boiling point. It also has the tremendous advantage of producing zero emissions, making it a renewable "non-polluting" energy source.

Geothermal energy, generated using the heat from the Earth's interior, is a renewable source of energy that does not rely on any type of fossil fuel. The heat comes from molten rock (known as "magma") deep below the geothermal resource. Over thousands of years, rainwater seeps through the cracks in the Earth's surface and collects in vast underground reservoirs. The magma's heat raises the temperature of the water in these reservoirs until it becomes super heated. Wells are drilled to reach this hot water, often to depths of 500 to 10,000 feet. These "production wells" bring up the hot water where it can be used either directly or indirectly (via a working fluid) to spin turbine blades, which in turn spin a shaft directly connected to an electrical generator. The water is then injected back into the Earth to help insure that the water isn't taken out of the geothermal resource faster than it is replaced. When properly managed, a geothermal resource is sustainable and renewable.

The government has recognized the potential in developing this form of electricity generation and has created incentives within the tax code to encourage its propagation. Tax credits and various other tax benefits are available for activities involved in geothermal power plant development and electricity generation. Many of these tax benefits are permanent parts of the US tax code. Additionally, section 45 of the Internal Revenue Code provides for a renewable electricity production tax credit that historically has been renewed by a vote of Congress before it expires. Raser Technologies intends to develop geothermal power plants in order to reap the financial benefits of both the revenue derived from the generation of the electricity as well as from the monetization of these tax credits."

Cook continued, "We have been working hard over the past year to enter this exciting market. With the combination of our recently secured geothermal technology license, our newly acquired geothermal property assets and the expertise of Raser's board of directors in the field, we are poised to become a leader in global geothermal markets."

Cook concluded, "At the same time, we will continue our ongoing efforts to develop our business in the Transportation and Industrial sectors. Indeed, they will combine with our Power Generation business to create a long-term, stable base for our business."

Underlying Raser's contribution in these sectors is its Symetron[TM] motor and drive technology, which is designed to take electric motor technology closer to its theoretical limit. This technology is designed to more efficiently harness one of nature's most useful forms of energy and deliver it in a low cost, lightweight electric drive system for industry, home, and electric vehicles. In the future, Symetron motor technology may help power the geothermal stations that the company builds.

About Raser Technologies

Raser is a publicly traded technology licensing company focused on improving the efficiency of rotating electromagnetic and heat transfer applications within the Transportation, Industrial and Power Generation markets. Raser's breakthrough Symetron[TM] motor technology is designed to take electric motor technology closer to its theoretical limit. This revolutionary motor technology works under a set of proprietary design innovations. Application of this technology requires a few simple changes to conventional motors, but yields significant increases in power, performance and efficiency without the use of exotic materials. The company is also expanding its interest in power generation to include the construction of geothermal electricity generating plants, deriving revenues from both the sale of the electricity as well as through monetizing the tax credits tax attributes that such plants possess. 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 the following: our beliefs about the performance and market applicability of our products, including our heat recovery technology; our beliefs about the status and enforceability of the Company's intellectual property; our beliefs about the strength of our existing and potential business relations in both the motor industry and the geothermal industry; our beliefs about the strength and enforceability of our agreements with Truckee and other third parties; our beliefs about the potential for geothermal power generation on the Truckee properties; our belief about the Company's ability to exploit the available geothermal resources; our beliefs about the performance capabilities of our technology; our beliefs regarding the time needed to develop and bring into service geothermal power plants; our beliefs about the geothermal market; our beliefs about potential financing opportunities; our understanding and investigation into tax credits and potential benefits for renewable energy projects; our beliefs about the funding requirements for follow-on development work; our ability to commercially license our technology; our ability to hire employees sufficient to accelerate engineering and testing; our ability to raise sufficient financing to take advantage of our intellectual property and leased properties; our understanding of heat-transfer technology 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 competitive environment and our ability to compete in the industry; our inability to adapt our technology for geothermal applications; our inability to adapt our technology for specific applications; 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 September 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.