MTI Micro Signs Collaboration Agreement with Top-Tier Power Tool Manufacturer in the Industrial Market

MTI MicroFuel Cells Inc. ("MTI Micro”), the developer of Mobion^® off-the-grid portable power solutions and a subsidiary of Mechanical Technology, Incorporated ("MTI”) (NASDAQ: MKTY) announced today that they have entered into an agreement with a leading manufacturer of power tools to evaluate the Mobion^® platform for use in future cordless products for industrial applications.

In a collaborative effort, MTI Micro and the power tool manufacturer are currently evaluating MTI Micro’s Mobion^® direct methanol fuel cell (DMFC) prototype. With MTI Micro’s patented replaceable fuel cartridge design, it can generate cord-free power that replaces current batteries and eliminates the wait time for it to charge up, and can also increase a users’ mobility by eliminating the need to find an available wall plug.

"We are pleased to be working with a leading power tool manufacturer. This relationship will allow MTI Micro to pursue opportunities beyond the consumer electronics market,” said Peng Lim, CEO of MTI. "With their extensive engineering background in manufacturing top-of-the-line industrial tools, this opportunity opens the door for micro fuel cells as an independent power source for various applications.”

MTI Micro’s Mobion^® DMFC platform incorporates a modular design that enables the flexibility required for micro fuel cells to be used in a wide range of applications, including mobile consumer electronics and other devices that require extended run-time and true mobile power.

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.

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 MTI Micro’s ability to successfully commercialize its Mobion® fuel cell system. 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 actual results could differ materially from those projected in forward-looking statements. Factors that could cause the anticipated results not to occur include the lack of funding to complete the commercialization of its direct methanol fuel cell technology; and the risk factors listed from time to time in MTI’s SEC reports including but not limited to, MTI’s annual report on Form 10-K for the year ended December 31, 2008.