December 10, 2008 09:00 AM Eastern Time 

MTI Micro Debuts World’s First Universal Charger with Removable Cartridge

ALBANY, N.Y.--(BUSINESS WIRE)--MTI MicroFuel Cells (“MTI Micro”), the developer of the award-winning Mobion^® off-the-grid portable power solutions and a subsidiary of Mechanical Technology, Incorporated (“MTI”) (NASDAQ: MKTY) unveiled today a new product intent external power-pack prototype capable of providing up to 25 hours of on-the-go power with each cartridge. This compact and light weight fuel cell charger comes with a removable cartridge that can be swapped for a new one when depleted. Each additional cartridge gives consumers another 25 Watt-hours of power. With the Mobion^® charger, for the first time, consumers can envision a world where power is instantly available where ever they are, when ever they need it.

“We are committed to ensure a process that delivers the engineering and manufacturing rigor necessary to make consistent, reliable products.”

The new Mobion^® self-sufficient power pack includes a USB interface, allowing the prototype to also be used as an independent energy source for a variety of purposes, including for recharging mobile phones, digital cameras, portable media players and other handheld electronic devices on the go.

With the amount of power from one small cartridge, the charger is designed to fully charge an average cell phone battery over 10 times; for an average user, this could power a cell phone for approximately one month, play 10,000 thousand songs or watch over 100 hours of video on their popular MP3 player, or take over 6000 pictures on a high end professional digital camera. In addition, the charger is designed with smooth edges for an easy grip comfortably fitting in the palm of one’s hand, and has interactive LED lights and easy-to-swap cartridges for intuitive use.

“Our Mobion^® product strategy is in line with what consumers on-the-go need. On average, in the U.S., mobile professionals carry 3.4 portable electronic devices with them, and are now buying a universal charger to conveniently recharge all their device batteries.” said Peng Lim, Chairman and Chief Executive Officer of MTI. “However, these conventional chargers still need to plug into an electrical outlet to recharge once the energy is used. Our Mobion^® charger allows consumers to charge their devices anytime, anywhere by eliminating the need to plug their devices or Mobion charger into a wall outlet and wait for a recharge – our Mobion^® charger generate electric power on the go and provides true mobility.”

At the core of MTI Micro’s compact charger prototype is its proprietary third generation Mobion^® Chip, a design architecture that embodies a reduction in the size, complexity, and cost of fuel cell construction. These changes drive improvements in reliability, manufacturability and low cost products. The Chip is based on 100% methanol fuel, passive, direct methanol fuel cell technology, and integrates a power module with fluid conditioning that allows the system to run in a wide environmental range including temperatures from 0C to 40C at any humidity level – an industry standard and a requirement of many OEMs who want to integrate fuel cells into their products. In laboratory testing, this third generation Mobion^® Chip demonstrated power of over 62 mW/cm² while producing more than 1800 Watt Hours Per Kilogram (Wh/kg) of energy from the direct methanol fuel feed.

“These chargers have been built using processes developed to increase throughput efficiency, intensify our testing, and increase reliability and consistency among units”, said Jim Prueitt, Vice President of Engineering and Operations. “We are committed to ensure a process that delivers the engineering and manufacturing rigor necessary to make consistent, reliable products.”

MTI Micro has plans to launch a product by the end of 2009 and pursue the consumer market with target applications which include hand-held communication, and other power-hungry portable electronic devices that can benefit from Mobion^® extended run-time, cord-free rechargeable power packs with continuous access to power anytime, anywhere.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc. (“MTI Micro”), a subsidiary of Mechanical Technology, Incorporated (NASDAQ: MKTY), is the developer of Mobion^® off-the-grid portable power solutions. MTI Micro has a team of entrepreneurial business executives, researchers and scientists; a proprietary direct methanol micro fuel cell power system and a number of system prototypes demonstrating size reductions and performance improvements; and related intellectual property. MTI Micro has received government funding and developed strategic partnerships to facilitate efforts to achieve 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, goals, beliefs, expectations, projections, plans, anticipation, outlook or predictions of the future are forward looking statements. Such statements include, among others, 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 applications; the importance of and benefits from developing or unveiling prototypes, and; the future prospects, markets, product launch, market acceptance, and commercialization plans of MTI Micro products in the consumer markets. All forward-looking statements are made as of today, and MTI and MTI Micro disclaims 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, its annual report on Form 10-K and Quarterly Reports on Form 10-Q.