Frost & Sullivan Recognizes MTI MicroFuel Cells' Innovative Fuel Cell Design

PALO ALTO, Calif.--Oct. 1, 20049, 2004--Frost & Sullivan's recent study, World Micro Fuel Cell Markets, highlighted MTI MicroFuel Cells exceptional technology innovation accomplishments in developing Mobion(TM), a pioneering technology for integrated micro fuel cell designs.

In its analysis, Frost & Sullivan named MTI Micro as the recipient of the 2004 Technology Innovation Award for its fully integrated patent pending direct methanol fuel cell (DMFC) solution. The Award is presented to the company that has shown significant commercialization progress through technology innovation. MTI Micro has formulated a well-designed product introduction strategy and has earned widespread industry recognition. Its technological sophistication has set the company on a growth trajectory in the market.

"MTI Micro's Mobion(TM) compact construction enables integration within an OEM device," says Frost & Sullivan industry analyst Sara Bradford. "DFMCs are expected to be a contender in the 1.79 billion portable device unit shipment market by 2010."

Micro fuel cells have the potential to be used in a wide range of applications including battery replacements, transportation, light-duty vehicles, emergency power, consumer tools, marine applications, communications, and mobile power.

Mobion(TM) is being designed to power portable devices up to ten times longer than traditional battery packs. Added benefits include instant cord-free recharging wherein the fuel compartment can be refilled with the quick replacement of a cartridge. In addition, a patent pending design that creates a simplified fuel cell process that can be operated in any orientation is a key plus.

Mobion(TM) is a high-powered, lightweight power source. By making use of fuel cells instead of traditional batteries that contain heavy metal, it provides environmental benefits.

MTI Micro expects to introduce Mobion(TM) technology to the market by the end of 2004, with radio frequency identification (RFID) portable tag readers as the first application. Consumer portable devices that are likely to be adopters of micro fuel cell technology include notebook computers, smart cellular phones, and other power-hungry electronic devices.

About MTI MicroFuel Cells

MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Incorporated, , is the developer of Mobion(TM), a patented direct methanol micro fuel cell technology. MTI Micro 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. For more information: www.mtimicrofuelcells.com.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting, and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information, visit www.frost.com.