“We are pleased with the DOE’s continued support for the ongoing development of manufacturing techniques for the commercialization of our Mobion® technology,” said Peng Lim, CEO of MTI. “This additional funding will contribute to our efforts in designing the Mobion® platform for testability as part of our manufacturing readiness plan this year, in preparation for a Mobion® product launch in the consumer market in 2009.”

This funding authorization is part of a cost-shared development contract originally awarded in 2004 through a merit-reviewed, competitive process involving academia, industry and DOE national laboratories. Since its inception and including the most recent authorization, the DOE has funded or committed to fund an aggregate of $3 million to MTI Micro’s Mobion® developmental efforts.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc. (“MTI Micro”), a subsidiary of Mechanical Technology, Incorporated (NASDAQ: MKTY), is the developer of Mobion® off-the-grid portable power solutions. MTI Micro has a team of entrepreneurial business executives, researchers and scientists; a proprietary direct methanol micro fuel cell power system and a number of system prototypes demonstrating size reductions and performance improvements; and related intellectual property. MTI Micro has received government funding and developed strategic partnerships to facilitate efforts to achieve commercialization. More information is available at www.mtimicrofuelcells.com.