MTI Micro Plans Commercialization of Military Products In 2006

MTI MicroFuel Cells Inc. (MTI Micro), the developer of Mobion(TM) micro fuel cell technology for handheld electronic devices, announced plans to deliver products to the government and military markets in 2006. MTI Micro is a subsidiary of Mechanical Technology Incorporated (Nasdaq: MKTY). MTI Micro plans to offer fuel cell products that lighten the loads of military electronic devices -sensors, rugged PDAs, radios, and other electronics typically powered by high-cost, heavy, non-rechargeable batteries.


To ramp up for the 2006 entry into the military markets, MTI Micro is working on a range of military projects during 2005. The Company plans to deliver sensor powerpack prototypes to the Army’s Special Operations Command Forces (SOCOM) in the second quarter of 2005; develop and deliver a soldier/radio power pack prototype in the third quarter; and announce an agreement with a lead customer/partner for sensor products by the end of the year.


MTI Micro is now providing Mobion(TM) based test and evaluation kits for government labs and military device manufacturers. The kits demonstrate the advantages of powering a variety of military electronics with a direct methanol fuel cell. The MobionTM kit connects to a handheld electronic, such as global positioning system (GPS) unit, serving as an alternative source of power, replacing the GPS’s typical battery. Users also can simultaneously connect the Mobion(TM) kit to a computer, monitor fuel cell activity, and collect data for analysis.


As part of the Company’s strategic focus on military markets, John R. Sperling has joined MTI Micro as Director of Government Sales. Mr. Sperling, a retired Air Force Colonel who will be headquarted out of the Company’s Washington area office, has more than 13 years of experience managing defense and private industry programs, conducting sensitive analysis and briefings for senior members in the government and congressional leaders, and providing policy oversight, as well as program and budget analysis for multi-million dollar programs. Previously, Mr. Sperling was Director of Government Relations for GE Ion Track where he increased explosive detection equipment sales to the U.S. Government and the U.S. military by ten fold in only three years.

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