"SOCOM is a leader in fostering the development and optimization of portable power solutions for special operations forces, and its objective is to reduce the size and weight of current power sources used in the field by 50%," said Mitch Wathan, SOCOM's Naval Air Systems Command representative. "The activity with MTI Micro supports these objectives as DMFCs have shown great potential to improve the status quo."

The five sensor power pack prototypes MTI Micro delivered are in the same form factor of the BA5590 -- one of the most commonly used batteries in the military. These early-stage Mobion(TM) hybrid prototypes are intended to demonstrate the capabilities of the technology and power a range of low-power sensor applications, which are becoming increasingly important for military operations. Applications can range from surveillance and monitoring of U.S. borders for homeland defense to deploying sensors in enemy territory for surveillance and combat operations where changing batteries in remote and sometimes dangerous locations is not desirable. Mobion(TM) powered sensors could offer the military longer device use time, uninterrupted intelligence data, less dangerous missions, and lower costs due to less frequent battery replacements.

MTI Micro also delivered, for evaluation, a 15W average and 150W peak early-stage hybrid system powering a Falcon® II Radio to SOCOM. The prototype replaces the existing battery power source and attaches to the back of the radio in the same way as the battery. When commercialized, this key design feature of directly replacing the battery will help to expand the adoption of Mobion(TM) power packs in both new and used equipment, and ease the retrofit of existing batteries.

Multi-band radios like the Falcon® II are critical in providing fast, reliable, and secure communication for special operations forces in the battlefield, and our patented Mobion(TM) technology is being developed to increase the runtime of these essential devices.

"The delivery of these units to SOCOM demonstrates the flexibility of our proprietary Mobion(TM) technology to power key military applications like sensors and radios which have distinct and different power demands," said Dr. William Acker, CEO of MTI Micro. "This delivery successfully completes our third quarter milestones and brings us closer to product readiness and the commercialization of our technology first in the military markets and ultimately within the consumer markets."

MTI Micro will be showing its radio power pack prototype at the Annual Association of the United States Army conference which will be held in Washington D.C. from October 3-5, 2005. The conference brings together key military officials, industry leaders, and the latest military technology available.

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