MPM Technologies, Inc. in Violation of Nasdaq Rule

Business Wire, June 19, 2002

Business Editors, High-Tech Writers

PARSIPPANY, N.J.--(BUSINESS WIRE)--June 19, 2002

MPM Technologies, Inc. (Nasdaq:MPML) announced today that Nasdaq, based on discussions with MPM and a review of its submissions, dated May 17 and 22, 2002, has determined that MPM violated Nasdaq Rule 4350 (i)(1)(A) which requires a company to obtain shareholder approval prior to the issuance of stock to an officer of the Company in excess of the lesser of 1% of total shares outstanding or 25,000 shares.

In that regard, on September 19, 2001, MPM and Michael J. Luciano, its Chairman and CEO, entered into a $600,000 convertible promissory note. The note is convertible at a 40% discount to the average trading price per share for the five days prior to the date of conversion. As such, Nasdaq has determined that the note is a "Future Priced Security." Subsequently, on March 4, 2002, Mr. Luciano converted $500,000 of the note at a 40% discount to the then current market price of $2.80 per share, or $1.68 per share. This conversion resulted in the issuance of 297,619 shares or 9.8% of the common shares outstanding. Since MPM issued these shares without first obtaining shareholder approval, it did not comply with Marketplace Rules 4350(i)(1)(A). In addition, since the note is a Future Priced Security and the potential issuance of share could exceed 20%, shareholder approval would also be required by Marketplace Rule 4350(i)(1)(D) which requires a company to obtain shareholder approval prior to issuance, or potential issuance, of stock equal to 20% or more of total shares outstanding at a discount. The Nasdaq panel at the Company's upcoming hearing will consider these issues.

About MPM Technologies, Inc.

MPM Technologies, Inc. is a holding company with four subsidiaries: Huntington Environmental Systems, Inc., and AirPol, Inc., both of which design, build, install and service industrial air pollution control systems; MPM Project Solutions Inc., which provides clients with project management, facility operations and maintenance, staffing support, consulting and technology services; and Nupower, Inc. which is engaged in the development and marketing of Skygas, a patented waste-to-fuel technology. Further information about MPM Technologies, Inc. may be obtained on the Internet at http://www.mpmtech.com.