"This delivery marks the achievement of our milestone of completing shipments of prototypes by the end of the second quarter," said Peng Lim, CEO of MTI. "We are very pleased with our on-time delivery and we will continue to work together to test and evaluate this new prototype shipment."

MTI Micro is developing next-generation fuel cell prototypes based on its 100% methanol fuel feed, passive technology known as Mobion(R) and has made significant size reductions to its fuel cell prototypes. This second delivery of industrial design prototypes is more than 30% smaller in size and 20% lighter in weight than its predecessors from the first delivery in November of 2006.

These advanced industrial design prototypes contain Mobion(R) chips. Recently, the Company announced its state-of-the-art Mobion(R) chip, which integrates a power module with fluid conditioning that allows its fuel cell system to run in a wide environmental range including temperatures from 0oC to 40oC at any humidity level — an industry standard in consumer electronics and a requirement of many OEMs.

Together, MTI Micro and its partner are exploring ways to potentially power a series of mobile phone and mobile phone accessories with fuel cell technology so new media-rich features (e.g. video, audio) can be added.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated (MTI) (Nasdaq: MKTY), 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.