« Previous | Next » | All Messages |  RZ Message Board Home | recommend post |  Ignore Poster

RZ News Raser Technologies Comments on Impact of Tax Relief and Health Care Act of 2006 on Geothermal Energy Production

PROVO, Utah--(BUSINESS WIRE)--Raser Technologies, Inc. (NYSE Arca: RZ), a publicly traded energy technology company, focused on improving the efficiency of rotating electromagnetic and heat transfer applications within the Transportation, Industrial and Power Generation markets, today commented on what H.R. 6111 Tax Relief and Health Care Act of 2006 means to Raser Technologies that President Bush signed into law last week.

Brent M. Cook, CEO of Raser, said, “There are essentially two provisions that affect the tax code as it relates to geothermal energy production. Each is an important government investment in the future energy security of the country.

“First and foremost, the act extends the production tax credit (PTC) for another year. To qualify for the PTC, an energy generating facility must be placed in service on or before December 31, 2008 to qualify for the PTC. For most facilities, the PTC previously was set to expire on December 31, 2007.

“Secondly, the act increases dollar limitations applicable to clean renewable energy bonds. In addition, the act extends the issuance date for clean renewable energy bonds to December 31, 2008.”

As part of Raser Technologies 2007 business plan, the company expects to develop geothermal electrical generating facilities and is in negotiations to secure the rights to do so in a “known geothermal resources area,” [KGRA] as defined by the US Geological Survey. In the coming months, the facilities will generate electricity for the US power grid, and that will form a stream of revenue for Raser.

Cook added, “In addition to the revenue from providing electricity, though, the tax credits addressed in the act represent assets that can be monetized. Without going into detail, we believe that we can boost the returns from the construction of a geothermal plant dramatically through the monetization of the tax credits that go with them. The government has recognized the potential in developing this form of electricity generation and has created incentives within the tax code to encourage its propagation. The extension of these credits underlies that policy.”

He concluded, “The extension of these credits though 2008 makes this a more attractive business. We believe that we will be able to attract strategic partners more easily with this legislation in place, and that will make this a bigger business than it would otherwise be.”

About Raser Technologies

Formed in 2003, Raser is a publicly traded technology licensing company focused on improving the efficiency of rotating electromagnetic and heat transfer applications within the Transportation, Industrial and Power Generation markets. Raser’s Symetron motor technology is designed to take electric motor technology closer to its theoretical limit. Application of Symetron^TM generally requires simple changes to existing products, but yields significant increases in power, performance and efficiency without the use of exotic materials. The company is also expanding its interest in power generation to include the development of geothermal electricity generating plants, deriving revenues from both the sale of the electricity as well as through monetizing the tax credits and attributes that such plants possess. Further information on Raser Technologies, Inc. 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: the ability of the Company to integrate its technologies into commercial applications; the Company’s beliefs about the performance capabilities of its technologies; the Company’s beliefs regarding its research and development efforts; the Company’s beliefs about the Company’s ability to exploit the available geothermal resources; our beliefs about the performance abilities of our technologies; advantages of its Flexmod™ and Symetron™ technologies; the Company’s ability to commercially license its technologies; the Company’s beliefs about trends in the markets; and the Company’s beliefs about trends in the motor industry.

These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment of the Flexmod™ and Symetron™ and heat transfer technologies; our inability to obtain funding for development activities; our inability to achieve commercial acceptance of our technology; our inability to compete effectively in the marketplace; the Company’s beliefs about the Company’s ability to exploit the available geothermal resources; the strength of our patent and pending patents and other intellectual property and those of our competitors; our inability to protect our intellectual property; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 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.