MTI Micro Demonstrates Industry Breakthrough in Fuel Cell Life Test

ALBANY, N.Y.--(Business Wire)--
MTI MicroFuel Cells Inc. ("MTI Micro"), the developer of Mobion(R)
off-the-grid portable power solutions and a subsidiary of Mechanical
Technology, Incorporated ("MTI") (NASDAQ: MKTY), today announced that
it has achieved 2,700 hours of continuous operation with a Mobion(R)
laboratory cell - the building block of the Company's Mobion(R) chip
and systems. In comparison, a typical cell phone plan in the U.S.,
marketed to moderate to heavy users, includes 3,000 minutes per month
which, over the life of a typical 2 year contract, translates to only
1,200 hours of use.

In an industry report published by the Journal of Power Sources,
tests conducted on direct methanol micro fuel cells show degradation
of up to 35% after only 360 hours of operation. In addition to the
2,700 hours of continuous run-time, our Mobion(R) test, which is still
ongoing, successfully demonstrated a significant achievement by
showing power degradation of less than 15% - which we believe is a
breakthrough for the micro fuel cell industry.

"Our test results are a clear indication of the technical progress
we have made on performance metrics including life, degradation,
temperature, and humidity levels which are required to bring products
to market in the consumer electronics industry. To our knowledge,
there are no other published results that match ours," said Jim
Prueitt, Vice President of Engineering and Operations at MTI Micro.
"With these results, we believe we continue to be a leader in the
micro fuel cell industry as we work toward the commercialization of
our Mobion(R) power sources."

According to Frost and Sullivan, the average power degradation in
a lithium ion battery can be approximately 50% of their charging
capacity after two years. As most cell phone users notice after a
short time of ownership, the battery in their phone does not hold a
charge like it did when it was new. They must recharge their phones
more and more often and be more conscious of saving power.

"In less than a year, we have been chosen by three consumer
electronic OEMs who are striving to meet the needs of consumers who
want a longer lasting and more reliable power source," said Peng Lim,
Chairman and CEO of MTI. "We believe these results show our
technological leadership and our future ability to help OEMs meet
those needs with our Mobion(R) technology."

With these latest test results, MTI Micro is also in line with
targets set by the Department of Energy in a recent funding
opportunity announcement which required fuel cells under 50 Watts to
have a life test of at least 2000 hours.

MTI Micro's strategy is to provide Mobion(R) portable power
products for use in the multi-billion dollar consumer electronics
industry for applications including cell phones, digital cameras,
PDAs, MP3 players and other handheld electronic devices. The Company's
Mobion(R), 100% methanol feed, passive DMFC technology has been
demonstrated in fully-functional prototypes and concept models in
three primary product directions: external cord-free rechargeable
power packs, attached fuel cell power sources and embedded micro fuel
cell designs.

About MTI MicroFuel Cells

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

Statements in this press release which are not historical fact
including statements regarding management's intentions, hopes, goals,
beliefs, expectations, projections, plans, anticipation, outlook or
predictions of the future are forward looking statements. Such
statements include, among others, MTI Micro's future business
prospects, technology and performance; the market potential for MTI
Micro's Mobion(R) fuel cell systems and the progress it is making in
developing and commercializing those systems for consumer
applications; future funding commitments from the DOE; and, the
importance of and benefits from any laboratory testing. All
forward-looking statements are made as of today, and MTI Micro and MTI
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, its Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.

Mechanical Technology, Incorporated
George Relan, 518-533-2220
Vice President of Corporate Development
grelan@mechtech.com

Copyright Business Wire 2008