Raser Secures Second 50-Year Geothermal Lease.

Raser Expands Resources for Geothermal Power Generation Business

PROVO, Utah -- Raser Technologies, Inc. (NYSE Arca: RZ), a technology licensing and development company established to develop and license advanced electric motor, controller and related technologies as well as to establish geothermal electricity generating plants, announced today that it has secured geothermal rights to the McGee geothermal lease properties in Nevada under the terms of a 50-year lease agreement. This is the second such agreement Raser has made as it pursues its development stage business plan to establish a geothermal power generation business.

In exchange for $5,000 in cash and 5,000 shares of restricted Raser common stock, Raser may begin development and construction of geothermal power plants on the leased lands located in Nevada. The leased properties are within a few miles of the previously leased acreage but are suspected to lie in a different geological fault area. They also fall within the US Geological Survey's "known geothermal resources area" (KGRA). Basically, 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 a property overlap to such a degree as to indicate strong geothermal potential.

Brent M. Cook, CEO of Raser, stated, "We suspect that the property covered by this new lease is part of a different geological fault structure than the majority of the previously leased properties and helps diversify our geothermal product opportunities. We are pleased with this new addition and look forward to developing and optimizing this resource."

Raser's recently acquired 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 provides a competitive advantage when used for water-based geothermal resources of generally low temperature, ranging from approximately 93 to 183 degrees C. The technology is also effective at higher temperatures. 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, which can be converted to electricity using the heat from the Earth's interior, qualifies as a renewable source of energy that does not rely on any type of fossil fuel. 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, 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.

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. 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 the lessor and other third parties; our beliefs about the potential for geothermal power generation on the leased 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.