ALBANY, N.Y.-- MTI MicroFuel Cells Inc. (MTI Micro), the developer of the award-winning Mobion(TM) micro fuel cell battery replacement technology, has been named 2005 Fuel Cell Entrepreneurial Company of the Year by Frost & Sullivan, an independent growth consulting firm in the technology and research markets.

This Award is presented to the company that has demonstrated excellence in the alternative energy storage market by successfully offering a focused product line within its market segment, has demonstrated technical superiority, and has employed sound business and marketing strategies. This Frost & Sullivan Award signifies the identification of a unique product solution with significant market potential. Candidate companies were evaluated on products, services, business and marketing plans.

"The fuel cell market is heating up with a variety of players and we are honored that Frost & Sullivan recognized MTI Micro's work in this space as exemplary," said William Acker, CEO, MTI Micro Fuel Cells.

MTI Micro revolutionized the fuel cell industry in December 2004 when it commercialized and shipped the world's first integrated micro fuel cell product powering a portable electronics device. MTI Micro delivered a micro fuel cell solution for powering an RFID tag reader to Intermec Technologies Corporation, a provider of supply chain information products, services and systems. The micro fuel cell was designed to deliver up to five times the runtime of lithium-ion battery-based readers.

The device delivered to Intermec is based on MTI Micro's breakthrough Mobion(TM) technology that uses a proprietary approach, which manages the water flow internal to the fuel cell without the need for complex "micro-plumbing." Mobion(TM) was developed to deliver two important user benefits: instant cord-free re-charging, using a replaceable fuel cartridge, and extended run times up to five times longer when compared to existing Li-Ion battery technology.

"MTI Micro's Mobion(TM) technology is one of the first fully integrated micro fuel cell designs introduced into the portable device marketplace," said Sara Bradford of Frost & Sullivan. "In addition to significant technological breakthroughs, MTI standouts for their ability to execute against important milestones for development and delivery of products and partnerships."

The 2005 Entrepreneurial Company of the Year Award will be presented to MTI Micro at the Excellence in Industrial Technologies Awards Banquet at the Registry Resort & Club in Naples, Florida on May 25, 2005.

About MTI MicroFuel Cells Inc.

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, (Nasdaq: MKTY - News), is the developer of the award winning Mobion(TM) 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 http://www.mtimicrofuelcells.com