Raser Technologies Announces Interest Payment to Convertible Note Holders

Raser Technologies, Inc., an energy technology company, announced today it has made the semi-annual interest payment of $2.2 million to the holders of Raser’s 8.00% Convertible Senior Notes due 2013. The interest payment was required to be paid by November 1, 2010.

Raser CEO, Nick Goodman said, “We are pleased to be able to put the matter of this payment behind us and move forward with our business plan. We continue to make progress on several initiatives including: the development of the Lightning Dock, New Mexico geothermal project, the development of extended range electric trucks for fleet use, the sale of Thermo No. 1 and the separation of our automotive segment.”

About Raser Technologies

Raser is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia. Raser’s Transportation and 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 our ability to accomplish our business plan goals; our beliefs regarding our ability to develop extended range electric trucks; our beliefs regarding our ability to develop the proposed Lightning Dock geothermal power project; our beliefs about our ability to sell the Thermo No. 1 plant; and our beliefs about our ability to potentially separate our Transportation and Industrial segment into a separate company. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the risks identified in our quarterly report on Form 10-Q for the quarter ended June 30, 2010, 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.