The first award, which will be administered by the Army Research, Development and Engineering Command (RDECOM) as part of its evaluation of new technologies for field-readiness, will total approximately $250,000 over the next ten months. The program includes the delivery of five integrated, hybrid DMFC systems to Special Operations Forces (SOF). These systems are targeted to provide continuous power to devices used by SOF and to deliver more than two times the energy of the battery currently in use while fitting in the same form factor.

The second award, a Phase I Small Business Innovative Research (SBIR) contract from Marine Corp System Command, will provide $70,000 over the next six months to support MTI Micro efforts to analyze and report on current regulations and requirements necessary to field DMFCs and fuel refill systems. An optional three month period could raise the total value of the contract to $100,000.

"We are pleased that the Army and the Marine Corp recognize the potential for DMFCs to improve the capabilities of equipment used by soldiers in the field, and have chosen to support the necessary steps to evaluate this important technology for field use," said Dale Church, Chairman of MTI Micro.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, (Nasdaq: MKTY - News), is the developer of Mobion(TM), a patented 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. For more information: www.mtimicrofuelcells.com.