Raser Technologies, Inc. (NYSE Arca: RZ) today announced that it has closed a private equity placement in which it raised $12.5 million in gross proceeds from six investors. The Company intends to use the net proceeds to accelerate its geothermal drilling program, to secure needed equipment, to support its growth initiatives and for general corporate purposes.

The transaction involved the sale of 2,693,552 shares of restricted common stock at a fixed price of $4.65 per share. The shares carry trading restrictions and were therefore sold at a discount to the Company’s recent, publicly traded market price. The transaction included the issuance to the investors of 942,739 warrants to purchase common stock at a strike price of $6.05. The Company has agreed to register the shares and warrant shares with the Securities and Exchange Commission within 135 days of the closing date of the transaction. The lead investor was Heartland Value Fund, managed by Heartland Advisors, Inc. (HAI). HAI is a Milwaukee-based investment manager with $3.2 billion of assets under management as of December 31, 2006.

Martin Petersen, CFO of Raser, said, “We are very pleased with this transaction. We view this group of investors as first rate, long-term shareholders who understand and endorse our business objectives. This financing will allow us to more aggressively pursue those plans.”

Brent Cook, Raser’s CEO, added, “We are pursuing a number of initiatives at an accelerated pace in both our Power Systems business segment and our Transportation and Industrial Technology segment. This additional capital strengthens our balance sheet, providing us greater flexibility in these pursuits. It is important that Raser maintain financial capabilities and establish key strategic relationships that will enable us to execute rapidly on our strategic initiatives.”

About Raser Technologies

Raser is a publicly-traded technology licensing and development company operating in two business segments. Raser’s Transportation and Industrial Technology segment focuses on using Raser’s Symetron(TM) technology to improve the efficiency and power density of electric motors and other applications. Raser’s Power Systems segment is seeking to develop new geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron(TM) technology. 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 the potential for geothermal power generation on our leased properties; and our beliefs about our ability to secure the equipment and services, on acceptable terms, required to complete our power projects. 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 for the intended applications; the strength of our intellectual property; our inability to attract, train and retain key personnel; and such other risks as identified in our annual report on Form 10-K for the year ended December 31, 2006, 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.