As part of its agreement with Fletcher, the Company has escrowed 2.7 million shares of Plug Power common stock that may be purchased by Fletcher, on one or multiple occasions, from June 1, 2005 to December 31, 2006, at a potential discount to the then market price. 

The proceeds of this stock sale are expected to be used primarily to support the operations of MTI MicroFuel Cells Inc. (MTI Micro), a subsidiary of the Company, and a leader in the design, development and commercialization of award winning Mobion(TM) technology suitable for handheld electronic devices. Mobion(TM) technology is intended to be used as a cordless power source for portable devices in consumer, commercial and military markets. MTI Micro introduced its first Mobion(TM) based product in December. 

"Including this $8 million investment from Fletcher, we now have approximately $23 million in cash and $17 million in unrestricted marketable securities to continue to support the Company's operations," said Steven Fischer, Chairman and Chief Executive Officer of MTI. 

About MTI 

MTI is primarily engaged in the development and commercialization of award winning Mobion(TM) cord-free advanced portable power systems, through its subsidiary MTI MicroFuel Cells Inc. (MTI Micro). MTI Micro shipped its first Mobion(TM) based product in December 2004, and has a world-class 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 significant related intellectual property. MTI Micro has received government awards and developed strategic partnerships to help accelerate commercialization. MTI is also engaged in the design, manufacture, and sale of high-performance test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. For more information about the Company please visit http://www.mechtech.com.