May 28, 2009 08:00 ET

Governor Arnold Schwarzenegger to Showcase Raser’s Electric Hummer H3 in a Demonstration Drive at the California State Capitol

New Plug-in Electric Vehicle Technology Could Allow America’s Top Selling Vehicles to Run Primarily on Electricity, Dramatically Reducing Emissions and Gas Consumption

SACRAMENTO, Calif. --(Business Wire)-- May 28, 2009 Raser Technologies, Inc. (NYSE: RZ), a leading energy technology company, will join with California Governor Arnold Schwarzenegger today to demonstrate Raser’s Electric Hummer H3, designed to achieve 100 mpg for a typical daily drive of 60 miles. The H3 uses an extended range electric vehicle (E-REV) powertrain developed by Raser Technologies. The Hummer H3 is a mid-sized SUV, similar in size to a Jeep Commander.

Governor Arnold Schwarzenegger will view the new plug-in electric Hummer H3 at the California State Capitol Thursday in a demonstration drive with Raser Chairman Kraig Higginson.

“I believe low-carbon fuel vehicles are the future and I want to see them succeed right here in California,” said Governor Schwarzenegger. “That’s why I’m bringing cars like this one to the Capitol where we can show the world there is a market for smart and innovative technologies that will also create jobs in the auto industry.”

According to a 2008 report by the U.S. Department of Transportation, trucks and SUVs account for nearly half the vehicles on the road and a majority of the emissions and fuel consumption.

“California has been known for its leadership in emissions and fuel economy standards which have been a driving force in establishing the new national CAFE standard,” said Kraig Higginson, Chairman of Raser Technologies. “We believe Raser’s E-REV powertrain will enable trucks and SUVs to meet or exceed this new standard while dramatically reducing emissions in larger vehicles,” added Higginson.

The most significant advantage of the E-REV is its ability to displace petroleum in favor of electric fuel, by driving the first 40 miles all on electricity. That’s significant because the majority of Americans drive fewer than 40 miles a day. “One of the best ways to improve gas fuel economy is not to burn gas,” stated David West, vice president of marketing for Raser Technologies and co-founder of the Plug-In Hybrid Development Consortium. “Most people will drive the Electric Hummer H3 primarily on electricity for about 60 cents per equivalent gallon of gasoline and will fill up with gas only a few times a year, rather than once a week,” added West.

In addition to plug-in electric vehicle technology, Raser is a leader in modular, low temperature geothermal power generation. Raser provides clean renewable geothermal power to California and intends to ramp up development of its large geothermal holdings to meet growing demand for base load renewable energy.

More information on the Electric Hummer H3 can be found at www.rasertech.com/hummer.

About Raser Technologies

Raser (NYSE: RZ) 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 and Raser’s Symetron™ technology developed internally by its Transportation and Industrial segment. Raser’s Transportation & 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 preliminary drilling results; our beliefs about the potential for geothermal power generation on our leased properties and its qualification for certain federal tax credits; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the testing and commissioning of our geothermal power project; our beliefs about local utility’s ability to complete their work in a timely manner; our beliefs about our ability to obtain adequate development funding; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; and our beliefs about the geothermal market in general. 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; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our annual report on Form 10-K for the quarter ended December 31, 2008, 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 press release.

Raser Technologies, Inc.
David West
Vice President Marketing
801-836-6350
david.west@rasertech.com
or
Hayden IR
Cameron Donahue, 651-653-1854
cameron@haydenir.com
or
Public Relations
Stern & Co.
Richard Stern, 212-888-0044
richstern@sternco.com
Alison Simard, 323-650-7117
arsimard@sternco.com