Steven Fischer, Chairman and CEO of MTI, outlined progress at both MTI MicroFuel Cells, the developer of Mobion(TM) technology, and MTI Instruments, which designs and manufactures precision test and measurement systems. Concerning MTI Instruments, Mr. Fischer reported on a 36% annual sales increase in 2004, and discussed new product introductions.

The focus of the meeting included product development, market opportunities, and the review of milestones for 2005. MTI Micro reiterated its plans to enter the military and consumer markets with its breakthrough Mobion(TM) technology to power portable electronic devices longer than an equivalent size battery pack and provide instant, cord-free re-charging.

William Acker, CEO of MTI Micro discussed the current milestones for 2005 and that MTI Micro and its fuel refill partner completed milestone 3, effective as of May 23, 2005 and amended its Strategic Alliance Agreement to include additional work for product identification, suitability, and OEM validation. MTI Micro has been and remains committed to the high volume, high growth market opportunity of powering consumer devices with micro fuel cells.

Other progress for MTI Micro includes a growing intellectual property portfolio, which represent advances in DMFC technology with 21 U.S. patents granted and an additional 55 U.S. and 20 international patent applications filed.

Also at the meeting, the Company announced that Fletcher International, Ltd. (Fletcher) elected to exercise its right in full to purchase approximately 1.8 million shares of Plug Power common stock owned by the Company with proceeds to MTI of approximately $1.3 million. After this transaction, Fletcher has no further right to acquire Plug Power common stock from MTI. Additionally, approximately 900 thousand shares of Plug Power common stock will be released from escrow resulting in the Company having approximately 3.8 million shares of unrestricted Plug Power securities.

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.