ALBANY, N.Y.--MTI MicroFuel Cells Inc. (MTI Micro), the developer of the award-winning Mobion® micro fuel cell technology and a subsidiary of Mechanical Technology Incorporated (Nasdaq: MKTY - News), announced today it has achieved two times the energy of a BA5590 battery -- one of the most frequently used military batteries -- in a Mobion® laboratory test unit, acchieving 200 percent of the energy in the same size package.

In the military markets, MTI Micro is focusing its proprietary Mobion® technology to target key portable applications used in day-to-day military operations such as multi-band, secured communications radios, and remote, unattended sensors.

"We believe that being able to extract two times the energy of the BA5590 battery in the same size package is an industry's first, and it certainly speaks to the capabilities of our Mobion® proprietary technology in the key important metric -- the total energy of the system," said Russ Marvin, VP of Engineering at MTI Micro.

The Mobion® test units ran continuously on one integrated fuel tank to achieve greater than 380Wh of energy in the same size and shape as the BA5590 battery -- This Mobion® application would be ideal for running low-power military sensors.

"Military sensors are power hungry devices situated in remote strategic locations where changing batteries may not be ideal," said Mitch Wathan, SOCOM's Naval Air Systems Command representative. "Mobion® technology 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's latest demonstration is based on MTI Micro's award winning Mobion® technology. MTI Micro's technology is protected by more than 75 patents and applications representing a number of breakthrough discoveries.

The Company believes that the Mobion® technology has significant benefits over primary battery packs used in military operations including higher energy density, longer mission duration, and lighter loads. In the case of the key metric -- energy -- the advantage becomes even greater as extra refills are carried with the Mobion® system. Each refill would be significantly smaller and lighter than the extra battery carried to produce the same amount of energy.

This announcement follows the Company's plans to enter the government and military market in 2006. To ramp up for entry readiness, the company has met a number of milestones in 2005, and plans to announce an agreement with a lead customer/partner for a military/homeland security product by the end of the year.

"We see DMFC products as providing tremendous potential benefits for our armed forces including significantly lighter loads, longer device use time, and lowered personnel costs related to frequent remote battery replacements," said Dr. William Acker, CEO of MTI Micro. "This achievement is an important step that moves us to the forefront in the development and commercialization of our Mobion® technology for these important military applications."

About MTI MicroFuel Cells Inc.

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