Frost & Sullivan Names MTI MicroFuel Entrepreneurial Company of the Year for Fuel Cells.

NAPLES, Fla. -- Frost & Sullivan will present MTI MicroFuel Cells, Inc. (MTI Micro) with the 2005 Fuel Cell Entrepreneurial Company of the Year Award at tonight's Excellence in Industrial Technologies Banquet.

MTI Micro revolutionized the industry as a leading fuel cell developer in the micro fuel cell space and was the first to commercialize and ship a micro fuel cell product in 2004.

"To become a truly entrepreneurial-spirited company, many aspects are considered from product development and innovation, to strategic partnerships and achievement of financial resources to ensure a large probability of success," says Frost & Sullivan research manager Sara Bradford. "MTI Micro has clearly demonstrated an entrepreneurial spirit in pursuance of delivering the world's first micro fuel cell shipment in 2004."

Since 2001, the company has striven to develop and strengthen necessary platforms to bring micro fuel cell technology from conceptual stage to product launch. This infant industry faces many challenges including slow adoption new technology, lack of cartridge/fuel refill standardization, transportability of cartridges, and growth from low to high volume manufacturing with decreasing cost curves.

MTI Micro has committed itself to overcoming these issues through a combination of its internal capabilities and strategic partnerships.

MTI Micro achieved numerous patent-pending designs with the ultimate goal of overcoming a key challenge micro fuel cell technologies face - compact size. Its innovative internal design requires no pumps or re-circulation loops, therefore, creating a simpler design and streamlining the size of the cell.

The company also gained multiple certifications that build end-user confidence in its safety and performance standards.

In June 2004, MTI Micro announced Mobion(TM) technology, a truly innovative design in the micro fuel cell arena. The company successfully delivered its first Mobion(TM) product used with Intermec Technologies GmbH's handheld Radio Frequency Identification (RFID) tag reader device. This is considered a high-drain device, requiring an energy source that can efficiently power it for an extended period of time.

"Having identified the tremendous opportunity in the niche RFID market, MTI Micro moved to supply Mobion(TM) technology for tag readers," notes Bradford. "This strategic move not only built up MTI Micro's brand recognition, but also initiated the growth of micro fuel cells as an alternative to conventional battery chemistries in high-drain portable devices."

Micro fuel cells hold great promise for handheld devices in military or industrial sector that require a high amount of power and have restraints in terms of weight. Consumer-portable devices could take more time to penetrate due to challenges in terms of distribution and market entry barriers.

Frost & Sullivan presents this Award to the company that has demonstrated excellence in the alternative energy storage market by successfully offering a focused product line within its market segment. The Award signifies the recipient's identification of a unique or bold product or service solution with significant market potential. Additionally, it recognizes the technical superiority and sound business and marketing strategies of the company.

Held in Naples, Fla., Frost & Sullivan's Excellence in Industrial Technologies Awards Banquet honors world-class companies for outstanding performance and achievements in their industries. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.

About MTI MicroFuel Cells, Inc.

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, (NASDAQ:MKTY), is the developer of the award winning Mobion(TM) 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

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.