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Raser Technology (RZTI.OB) Finalizes Transaction to Launch New Electric Automotive Company

Prominent technology company Raser Technologies, Inc. announced on Tuesday that it has finalized a transaction to form a new electric automotive company with a small group of private investors. Led by California investor Carl E. Berg, the plan will be focused initially on trucks and SUVs for fleet customers.

In the transaction, Mr. Berg will capitalize the new company with $4.5 million, which will be used as working capital for the new company. Mr. Berg will receive $2.5 million in cash, $1.5 million of which was paid at closing and the remainder is to be paid by December 20, 2010. Additionally, Raser receives a 39% interest in the new company and will retain the right to appoint one of the three members of the company’s board of directors.

Mr. Berg commented, “I am very pleased with the acquisition and the opportunity for rapid growth in the electric vehicle market based on Raser’s strategic position, orders and their E-REV truck technology. I believe that this automotive company will offer a completely new kind of work truck to help electrify the largest segment of the automobile business and convert thousands of soft orders into deliveries over the next few years.”

Kraig Higginson, Raser Technologies chairman, commented, “We have been working on separating the automotive and renewable energy segments, and believe that this will allow both businesses to operate and attract capital more efficiently. We have been successful in the development of a very promising E-REV powertrain technology. We are pleased that it will soon be offered commercially in America’s most popular vehicle, the pick-up truck, by an exciting new electric vehicle company. The new company plans to begin delivering the first extended range electric trucks to fleet customers beginning the end of this year.”

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