ALBANY, N.Y.--MTI MicroFuel Cells Inc. (MTI Micro), developer of the award-winning Mobion(R) micro fuel cell technology for handheld electronic devices and a subsidiary of Mechanical Technology Incorporated (MTI) (NASDAQ: MKTY), announced that the company has completed initial testing of a number of Mobion(R) units from its developmental pilot production line. MTI Micro will share results of the test and demonstrate its prototypes later this month at the U.S. Department of Energy (DOE).

The initial test of Mobion(R) prototype systems produced on the developmental pilot production line showed more than a 10% improvement in both energy and power over test results in the fall of 2007. These achievements can be attributed to platform design refinements and subsystem reliability from the developmental pilot production line.

MIT Micro will be presenting future development opportunities for portable power sources at the Fuel Cell Pre-Solicitation Workshop this month at the DOE office in Golden, Colorado. The DOE will be using input from MTI Micro and other participants to assist them in the development of fuel cell funding announcement opportunities for 2009. In addition, MTI Micro will also brief the DOE on test results and demonstrate its new developmental pilot production prototypes.

In 2007, the DOE committed $1.0 million dollars to MTI Micro's Mobion(R) developmental efforts including the development of mass manufacturing techniques and the optimization of its unique Mobion(R) technology platform. This funding is part of a cost shared program which is expected to result in up to $1.8 million in funding from the DOE between 2007 and 2008.

"We appreciate the continued support from the Department of Energy as we advance toward our goal of manufacturing readiness in 2008 and product launch in 2009," said Peng Lim, CEO of MTI. "This program provides resources that advance broader fuel cell manufacturing technology and help support MTI Micro's developmental efforts."

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, (NASDAQ: MKTY), is the developer of the award winning Mobion(R) 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.