Jun 12 - Business Wire

Raser Technologies, Inc. (NYSE Arca: RZ) announced today it has executed a power purchase agreement (PPA) with the Salt River Project Agricultural Improvement and Power District (SRP), a major utility district of the State of Arizona serving the Phoenix area, for Raser's Lightning Dock geothermal power plant in New Mexico. The PPA will provide for the delivery by Raser of approximately 10 megawatts (MW), or enough electricity to power approximately 5,500 homes in the Phoenix area, of renewable geothermal power for 20 years. Under the agreement, Raser plans to begin delivering electricity on or before December 15, 2008.

The SRP power purchase agreement provides for a stated selling price with annual increases over the term of the agreement. The PPA also provides for an increase in the price per MWh if the Federal production tax credit for renewable power is not extended and the project does not qualify for the production tax credit in its current form. SRP has the right of first refusal for any additional power produced by the Lightning Dock project if it is expanded. The Lightning Dock project is one of the oldest Known Geothermal Resource Areas (KGRA) in New Mexico and has been well studied for over 20 years. The project has 41 wells exhibiting temperatures from 250 to more than 300 degrees (F). Third party geological studies have verified that sufficient heat and flows are available to produce geothermal power. Raser intends to initially build a 10 MW power plant, and then expand the facility to maximize the resource at a later date.

The environmentally focused Utah-based company has 32 MW of signed PPA contracts with another 110 MW in various stages of approval and negotiation with utilities and municipalities. Raser also has approximately 85 MW of geothermal projects currently under development and anticipates that its first projects will be completed in 2008.

"We see an increasing demand from utilities and municipalities like SRP for green power which reduces emissions and reduces our energy dependence on fossil fuels," said Maddie Reicher, Evolution Markets Inc., an environmental and energy brokerage firm that facilitated the SRP transaction. "A number of additional states have recently adopted renewable portfolio standards (RPS) mandating that a minimum percentage of power supplied by these utilities to their customers come from renewable energy sources like Raser's geothermal project in New Mexico. Raser is well positioned with its geothermal energy pipeline approach to help them meet the growing demands from businesses and residents and meet the higher standard of renewable energy use."

"We are excited to support SRP's commitment to expand their use of renewable energy," stated Brent M. Cook, Raser's Chief Executive Officer. "Our geothermal power plants are designed to provide baseload renewable energy with virtually no harmful emissions. This additional PPA is yet another milestone for Raser Technologies in meeting our goal of continuing to initiate the development of approximately 100 MW per year for the next two years and 150 MW of geothermal energy each year thereafter. With the PPA now signed with SRP, we expect to move forward in completing the Lightning Dock project by the end of this year."

About The Salt River Project

SRP is the third-largest public power utility in the nation, serving more than 935,000 electric customers in the greater Phoenix metropolitan area.

About Raser Technologies

Raser (NYSE Arca: RZ) is a publicly-traded, environmentally focused technology licensing and development company operating in two business segments. 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(TM) technology developed internally by its Transportation and Industrial Technology segment. Raser's Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser's award-winning Symetron(TM) 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; our belief about our ability to exploit the available geothermal resources; our beliefs about the strength and enforceability of our agreements; our beliefs about our ability to successfully negotiate power purchase agreements; and our beliefs about the geothermal market generally. 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 geothermal 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 quarterly report on Form 10-Q for the quarter ended March 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.