MTI Micro Unveils New Mobile Fuel Cell Prototype for Digital Cameras at Premier International Fuel Cell Event

Business Wire, Feb 26, 2008

New Mobion([R]) powered digital camera grip and cell phone concept among prototypes to be demonstrated at Hydrogen and Fuel Cell Expo in Tokyo

ALBANY, N.Y. -- MTI MicroFuel Cells (MTI Micro), the developer of the award-winning Mobion([R]) micro fuel cell technology and a subsidiary of Mechanical Technology Incorporated (NASDAQ:MKTY) unveils tomorrow a new prototype for the digital camera market at the 4th International Hydrogen and Fuel Cell Expo in Tokyo, Japan. In addition to a demonstration featuring the Company's most recent Mobion([R]) powered external power pack chargers, the new camera-grip prototype will be on display at booth number 5-14 along with a new embedded fuel cell concept model demonstrating Mobion's([R]) potential for integration into future portable electronic devices.

MTI Micro's new Mobion([R]) powered Direct Methanol Fuel Cell (DMFC) camera-grip prototype works like a camera battery-pack grip for digital single-lens reflex (DSLR) cameras. Theprototype is designed to provide twice as much energy as existing camera battery-pack grips of the same size. Also, the Mobion([R]) camera grip can be refilled with methanol for instant power, which allows photographers the freedom to use the camera any time, anywhere, without having to recharge from a wall outlet.

"Digital cameras make up the second largest revenue segment in the consumer lithium-ion battery market," said Peng Lim, CEO of MTI. "With more advanced features being designed into new models, such as high-definition video recording and playback, battery life becomes a key issue. This camera grip prototype demonstrates our ability to remove power consumption issues for manufacturers, so that they can keep innovating and developing new products."

Today's DSLR cameras are increasingly being purchased by average consumers; this new prototype addresses the power demands of this widening market segment. According to industry sources, in 2007, there were approximately six million DSLRs shipped that are compatible with MTI Micro's prototype, and the market is expected to continue to grow in the next several years.

MTI Micro's booth at the expo will showcase functional prototypes and present visitors with an overview of the potential applications for Mobion([R]) micro fuel cells. MTI Micro's refillable Mobion([R]) external power pack chargers will be supplying power to a variety of cutting-edge portable devices, including a cell phone, a digital camera, an MP3 player and a smart phone. Visitors will be able to interact with each independently Mobion([R]) powered device at the booth.

Additionally, the Company has developed a new embedded fuel cell concept model, which will also be on display. Designed for a cutting edge Smartphone, the concept model highlights the anticipated future product direction for Mobion([R]) micro fuel cells in the consumer market.

"The International Hydrogen and Fuel Cell Expo will provide us with additional opportunities to demonstrate our prototypes to the many interested parties who could potentially become our strategic partners," said Mr. Yasuo Mohri, newly appointed Japan-based representative for MTI Micro. "With a continual presence in Japan, our relationships will benefit from a local point of contact, so MTI Micro can continue to foster stronger relationships in the region while solidifying its leadership position in commercializing direct methanol fuel cell technology."

MTI Micro's Mobion([R]) demonstration can be seen at MTI Micro's display booth number 5-14 at the Fuel Cell Expo from Wednesday, February 27 through Friday, February 29. For more information on the 4th Annual Hydrogen and Fuel Cell Expo in Tokyo, visit http://www.fcexpo.jp/english/.

MTI Micro is developing Mobion([R]) cord-free rechargeable power pack technology as a superior solution for powering the multi-billion dollar portable electronics market. MTI Micro's strategy is to enter the market in 2009 with Mobion([R]) products for use in the consumer electronics industry for applications like cell phones, digital cameras, PDAs, MP3 players and other handheld electronic devices.

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.

Statements in this press release which are not historical fact including statements regarding management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, MTI Micro's future business prospects, technology and performance; the market potential for and progress MTI Micro is making in developing its Mobion([R]) fuel cell systems for consumer applications; the importance of and benefits from developing or unveiling prototypes; the ability of MTI Micro or our Japanese representative to develop key relationships with OEM decision makers, foster business development, or sell and support fuel cell systems to customers, and; the future prospects, markets, product launch, market acceptance, and commercialization plans of MTI Micro products in the consumer markets. All forward-looking statements are made as of today, and MTI and MTI Micro disclaim any duty to update such statements. It is important to note that MTI Micro's and MTI's actual results could differ materially from those projected in forward-looking statements. Factors that could cause the anticipated results not to occur include, among others, risks related to financing; uncertainties in development, manufacturing and competition; and the risk factors listed from time to time in MTI's SEC reports including but not limited to, the annual report on Form 10-K and Quarterly Reports on Form 10-Q.