MTI Micro Showcases Developmental Pilot Production Prototypes at 2008 International Consumer Electronics Show

ALBANY, N.Y.--(BUSINESS WIRE)--MTI MicroFuel Cells Inc. (MTI Micro), developer of the award-winning Mobion^® micro fuel cell technology for handheld electronic devices and a subsidiary of Mechanical Technology Incorporated (MTI) (NASDAQ: MKTY), announced a successful showing at the 2008 International Consumer Electronics Show (CES), as executives from the Company hit the conference floor with a series of external power pack prototypes and met with potential partners, customers and leading consumer electronics manufacturers.

“CES is a great event and we were glad to be there to share the progress that Mobion® technology has made in the past year”

“CES is a great event and we were glad to be there to share the progress that Mobion^® technology has made in the past year,” said Peng Lim, CEO of MTI. “In demonstrating our latest external power pack prototype, leading consumer electronics manufacturers from around the world were able to witness Mobion^®’s capabilities and anticipated product direction as we move toward our goal of launching a micro fuel cell product in 2009.”

The latest prototypes displayed at CES were produced in Albany, NY at MTI Micro’s new developmental pilot production line. MTI Micro first announced the successful development of a series of external power pack prototypes late last year including improvements on size reductions greater than 60% and increases in energy and power density.

MTI Micro is developing Mobion^® cord-free rechargeable power pack technology as a superior solution for powering the multi-billion dollar portable electronics market. MTI Micro's strategy is to enter the market with low power products for use in the consumer electronics industry for applications like cell phones, PDAs, MP3 players and other handheld electronic devices.

In 2007, MTI Micro signed an agreement with Trident Systems, Inc., a leader in the development of unattended ground sensors, signed a continuing collaboration covering cell phone and cell phone accessories with its top tier, global Korean partner, and signed an agreement with DaeHong, its Korean representative.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, (NASDAQ: MKTY), is the developer of the award winning Mobion^® direct methanol micro fuel cell technology. The Company has a world-class team of entrepreneurial business executives, researchers and scientists; a number of system prototypes demonstrating size reductions and performance improvements; significant related intellectual property; and has received government awards and developed strategic partnerships to help accelerate commercialization. More information is available at www.mtimicrofuelcells.com.

Statements in this press release which are not historical fact including statements regarding management’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, future prospects and applications for fuel cell systems; MTI Micro’s future business prospects, technology and performance; the market potential for and progress MTI Micro is making in developing its Mobion^® fuel cell systems for consumer or military applications; the importance of and benefits from a developmental pilot production line, and; the future prospects, markets, product launch, market acceptance, and commercialization plans of MTI Micro products in the consumer or military markets. All forward-looking statements are made as of today, and MTI and MTI Micro disclaim any duty to update such statements. It is important to note that MTI Micro’s and MTI’s actual results could differ materially from those projected in forward-looking statements. Factors that could cause the anticipated results not to occur include, among others, risks related to financing; uncertainties in development, manufacturing and competition; and the risk factors listed from time to time in MTI’s SEC reports including but not limited to, the annual report on Form 10-K and Quarterly Reports on Form 10-Q.