Raser Technologies, Inc. Awarded Contract to Design and Develop
Integrated Starter Alternator for Military Vehicles

PROVO, Utah--(BUSINESS WIRE)--Raser Technologies, Inc. (NYSE Arca: RZ, “Raser”), a technology licensing company established to develop and license advanced electric motor, controller and related technologies, today reported that the company has received a contract for the design and development of working prototypes of a Symetron^TM Enhanced Integrated Starter Alternator (ISA) for use by the U.S. Army in its fleet of over 50,000 HMMWV (“Humvee”) vehicles.

“Raser is proud to have the opportunity to enhance the functionality of the Army’s workhorse fleet of Humvee’s”

Raser’s work will be performed in two phases. The first phase, expected to be performed over the next 18 months, provides Raser with funding of $461,000 and includes the delivery of engineering model ISA’s and controllers to the Army and its contractors for design and development testing. Raser expects the majority of revenue associated with this contract to be recorded in fiscal 2007. The current contract is being administered through ARINC.

Raser estimates that the second phase of preparing an ISA for full military and commercial production would require an additional $4.9 million in federal funding beginning in 2008. If funded, this second phase would include the delivery of fully-functioning ISA and controller prototypes for testing, evaluation and integration into current and developmental vehicle platforms.

The contract and scope of work are an extension of a project that was originally initiated with Raser and the Army’s Tank and Automotive Research and Development Center, (“TARDEC”) in October 2005.

“Raser is proud to have the opportunity to enhance the functionality of the Army’s workhorse fleet of Humvee’s,” said Raser President Patrick Schwartz. “The addition of a Symetron^TM Enhanced ISA and controller should boost fuel economy, improve performance on steep inclines, and simplify maintenance by switching belt-driven accessories to electric drive. A high-performance ISA can also generate adequate mobile power on-board, thereby eliminating the need to tow auxiliary generators to power field operations such as medical and telecommunications units.”

A recent article in RDECOM Magazine, a publication of the U.S Army Research, Development and Engineering Command, stated that previous field testing of hybrid Humvees had suggested that the benefits from hybrid electric power are “potentially endless.” The tests indicated that by applying an engine/generator as the prime power source, a high voltage battery pack for short term load leveling and brake event energy storage to military vehicles, the Army could not only have on-board power generating capabilities, but also additional capabilities to recover braking energy, improve fuel economy, reduce emissions, and provide silent mobility for stealth, while increasing survivability and improving soldier mobility and performance.

About ARINC

ARINC Incorporated is the world leader in transportation communications and systems engineering. The company develops and operates communications and information processing systems and provides systems engineering and integration solutions to five key industries: airports, aviation, defense, government, and surface transportation. Founded to provide reliable and efficient radio communications for the airlines, ARINC is headquartered in Annapolis, Maryland, and operates key regional offices in London and Singapore, with over 3,200 employees worldwide. ARINC is ISO 9001:2000 certified. Further information may be found at www.arinc.com

About Raser Technologies

Raser is a publicly traded technology licensing company focused on improving the efficiency of rotating electro-magnetic 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 ISA 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, particularly with the U.S. Army; our belief about the Company’s strategies with respect to the U.S. Army; our beliefs about the performance capabilities of our technology; 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; 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 ISA industry; our inability to adapt our technology for military applications; our inability to adapt our technology for military 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.