This prototype of a charger accessory -- the size of a small paperback novel -- displays the strengths and innovative qualities unique to MTI Micro's Mobion(R) technology such as 100% methanol, light weight, and most importantly longer device run time -- a feature that customers deeply care for.

This Mobion(R) accessory charger prototype provides over 95Wh of continuous run-time and allows users to charge a number of portable electronic products. For example, it is designed to charge an average cell phone battery over 30 times or give customers about a month of phone usage on one full charge per day. It is also designed to allow customers to take more than 5,000 pictures on a small portable digital camera, or recharge a 5 gigabyte video/audio MP3 player over 40 times.

"This prototype's form factor allows users to carry more power without the inconvenience of carrying multiple chargers and adaptors, and hunting for wall outlets," said Juan Becerra, Vice President of Market and Business Development at MTI Micro. "This accessory prototype has 3 to 5 times more capacity than any other charger in its class, and it addresses current trends in portable electronics."

Trends in portable electronics are creating a growing need for longer- lasting power. Consumers want increased intelligence and wireless functionality -- for example more memory, color screens, satellite TV, and multi-purpose devices like cell phones that are also digital cameras, PDAs, and MP3 players. In addition, typically in the consumer electronics industry, new technologies enter the market with form factors that gives both OEMs and end-users the flexibility to choose the new technology as an option, and are normally external to the device at first. Examples of these technologies include modems, Wi-Fi, and 3G wireless such as HSDPA and EVDO cards which were not embedded within laptop computers when first introduced into the market. Now, many of these technologies are included inside the laptops.

In the consumer market, MTI Micro recently signed an exclusive agreement with Samsung Electronics -- one of the largest and most innovative mobile phone suppliers in the world -- to develop Mobion(R) fuel cell prototyppes for various mobile phones and accessories. MTI Micro is working very closely with Samsung in customizing prototypes scheduled to be delivered to Samsung for testing in the fourth quarter.

"This Mobion(R)-1 prototype is an indication of our technology progress that coupled with our consumer electronic and fuel distribution partners bring us a step closer to our ultimate goal -- making Mobion(R) a standard power sourcce used for powering all types of mobile products in military, industrial, and consumer applications," said Peng Lim, CEO of MTI Micro.

MTI Micro remains on track to meet its milestone of a customer demonstration of a product-intent military portable power system in the third quarter.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated (MTI), is the developer of the award-winning Mobion(R) direct methanol micro fuel cell technology. MTI Micro 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 facilitate efforts to achieve commercialization. More information is available at http://www.mtimicrofuelcells.com/.