----

----

| x      |                     | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE  |
|--------|--------------------------|------------------------------------------------------------------------------|
|   |                     | ACT OF 1934                                                                  |
|   |      | FOR THE QUARTERLY PERIOD ENDED September 30, 2010                       |
|   |                     | OR                                                                           |
|   |
| o      |                     | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|   |                     | ACT OF 1934                                                                  |

| New York                     | 0-6890                   | 14-1462255          |
|------------------------------|--------------------------|---------------------|
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer       |
| of Incorporation)            |                     | Identification No.) |

| Large accelerated filer o                   | Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
|---------------------------------------------|---------------------|-------------------------|-----------------------------|
| (Do not check if a small reporting company) |

----

| PART I. FINANCIAL INFORMATION                                                                                                                                       | 2                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                                                                |              |
|      Item 1. Financial Statements                                                                                                               | 2                 |
|                                                                                                                                                                |              |
|           Condensed Consolidated Balance Sheets as of December 31, 2009 and September 30, 2010 (Unaudited)             | 2                 |
|                                                                                                                                                                |              |
|           Condensed Consolidated Statements of Operations (Unaudited)                                                  |              |
|           For the Three and Nine Months Ended September 30, 2009 and 2010                                              | 3                 |
|                                                                                                                                                                |              |
|           Condensed Consolidated Statements of Stockholders’ Equity (Deficit) and Comprehensive Loss (Unaudited) |              |
|           For the Nine Months Ended September 30, 2009 and 2010                                                        | 4                 |
|                                                                                                                                                                |              |
|           Condensed Consolidated Statements of Cash Flows (Unaudited)                                                  |              |
|           For the Nine Months Ended September 30, 2009 and 2010                                                        | 5                 |
|                                                                                                                                                                |              |
|           Notes to Condensed Consolidated Financial Statements (Unaudited)                                             | 6                 |
|                                                                                                                                                                |              |
|      Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                                        | 18                |
|                                                                                                                                                                |              |
|      Item 4. Controls and Procedures                                                                                                            | 25                |
|                                                                                                                                                                |              |
| PART II. OTHER INFORMATION                                                                                                                                          | 26                |
|                                                                                                                                                                |              |   |
|      Item 1.                                                                                                                                    | Legal Proceedings | 26 |
|                                                                                                                                                                |              |   |
|      Item 1A.                                                                                                                    | Risk Factors      | 26 |
|                                                                                                                                                                |              |   |
|      Item 5.                                                                                                                                    | Other Information | 28 |
|                                                                                                                                                                |              |   |
|      Item 6.                                                                                                                                    | Exhibits          | 28 |
|                                                                                                                                                                |              |
|      SIGNATURES                                                                                                                                 | 28                |

----

| (Dollars in thousands)                                                                                                          | December 31, |                                                 | September 30, |
|---------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------------------------------------|---------------|
|                                                                                                                            | 2009         |                             | 2010          |
| Assets                                                                                                                          |
| Current Assets:                                                                                                                 |         |                                                 |          |   |   |   |   |
|        Cash and cash equivalents                                                                  | $            | 785                                                  |          |   | $ | 574 |   |
|        Accounts receivable, less allowance for doubtful accounts ($92 in 2009 and $0 in 2010)     |         | 1,142                                                |          |   |   | 1,017 |   |
|        Inventories, net                                                                           |         | 789                                                  |          |   |   | 890 |   |
|        Prepaid expenses and other current assets                                                  |         | 166                                                  |          |   |   | 274 |   |
|               Total Current Assets                             |         | 2,882                                                |          |   |   | 2,755 |   |
| Property, plant and equipment, net:                                                                                             |         | 859                                                  |          |   |   | 519 |   |
|               Total Assets                                     | $            | 3,741                                                |          |   | $ | 3,274 |   |
|                                                                                                                            |
| Liabilities and Stockholder’s Equity (Deficit)                                                                            |
| Current Liabilities:                                                                                                            |         |                                                 |          |   |   |   |   |
|        Accounts payable                                                                           | $            | 323                                                  |          |   | $ | 410 |   |
|        Accrued liabilities                                                                        |         | 1,290                                                |          |   |   | 1,184 |   |
|        Deferred revenue                                                                           |         | 16                                                   |          |   |   | 18 |   |
|        Income taxes payable                                                                       |         | 20                                                   |          |   |   | 20 |   |
|               Total Current Liabilities                        |         | 1,649                                                |          |   |   | 1,632 |   |
| Long-Term Liabilities:                                                                                                          |         |                                                 |          |   |   |   |   |
|        Derivative liability                                                                       |         | 70                                                   |          |   |   | 56 |   |
|               Total Long-Term-Liabilities                      |         | 70                                                   |          |   |   | 56 |   |
|               Total Liabilities                                |         | 1,719                                                |          |   |   | 1,688 |   |
| Stockholders’ Equity (Deficit):                                                                                           |         |                                                 |          |   |   |   |   |
|        Common stock, par value $0.01 per share, authorized 75,000,000; 5,776,750 issued in        |         |                                                 |          |   |   |   |   |
|               both 2009 and 2010                               |         | 58                                                   |          |   |   | 58 |   |
|        Paid-in-capital                                                                            |         | 133,286                                              |          |   |   | 134,629 |   |
|        Accumulated deficit                                                                        |         |          (120,724 | )             |   |   |          (122,761 | ) |
|        Common stock in treasury, at cost, 1,005,092 shares in both 2009 and 2010                  |         | (13,754                                              | )             |   |   | (13,754 | ) |
|               Total MTI stockholders’ deficit            |         | (1,134                                               | )             |   |   | (1,828 | ) |
|        Noncontrolling interest                                                                    |         | 3,156                                                |          |   |   | 3,414 |   |
|               Total Equity                                     |         | 2,022                                                |          |   |   | 1,586 |   |
|               Total Liabilities and Stockholders’ Equity | $            | 3,741                                                |          |   | $ | 3,274 |   |
|                                                                                                                            |

----

| (Dollars in thousands, except per share)                                                                                 |                           | Three Months Ended |                           | Nine Months Ended |
|--------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------|--------------------------------|-------------------|
|                                                                                                                     |                           | September 30,      |                           | September 30,     |
|                                                                                                                     |       | 2009               |       | 2010              |       | 2009 |       | 2010 |
| Product revenue                                                                                                          |                           | $                  | 1,439                          |              |   | $ | 1,646 |   |   | $ | 4,298 |   |   | $ | 4,541 |   |
| Funded research and development revenue                                                                                  |                           |               | 526                            |              |   |   | 334 |   |   |   | 1,584 |   |   |   | 1,109 |   |
|        Total revenue                                                                       |                           |               | 1,965                          |              |   |   | 1,980 |   |   |   | 5,882 |   |   |   | 5,650 |   |
| Operating costs and expenses:                                                                                            |                           |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cost of product revenue                                                             |                           |               | 584                            |              |   |   | 662 |   |   |   | 1,877 |   |   |   | 1,933 |   |
|        Research and product development expenses:                                          |                           |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
|               Funded research and product development   |                           |               | 1,054                          |              |   |   | 537 |   |   |   | 3,176 |   |   |   | 2,134 |   |
|               Unfunded research and product development |                           |               | 292                            |              |   |   | 292 |   |   |   | 1,028 |   |   |   | 998 |   |
|        Total research and product development expenses                                     |                           |               |      1,346 |              |   |   | 829 |   |   |   | 4,204 |   |   |   | 3,132 |   |
|        Selling, general and administrative expenses                                        |                           |               | 698                            |              |   |   |      1,169 |   |   |   | 2,343 |   |   |   | 3,874 |   |
| Operating loss                                                                                                           |                           |               | (663                           | )                 |   |   | (680 | ) |   |   | (2,542 | ) |   |   | (3,289 | ) |
| Interest expense                                                                                                         |                           |               | (69                            | )                 |   |   | — |   |   |   | (171 | ) |   |   | — |   |
| (Gain) Loss on derivatives                                                                                               |                           |               | (150                           | )                 |   |   | (4 | ) |   |   | (118 | ) |   |   | 14 |   |
| Other (expense) income, net                                                                                              |                           |               | (20                            | )                 |   |   | (21 | ) |   |   | 4 |   |   |   | (50 | ) |
|        Loss before income taxes and non-controlling interest                               |                           |               | (902                           | )                 |   |   | (705 | ) |   |   | (2,827 | ) |   |   | (3,325 | ) |
| Income tax benefit                                                                                                       |                           |               | —                        |              |   |   | — |   |   |   | 199 |   |   |   | — |   |
|        Net loss, net of tax                                                                |                           |               | (902                           | )                 |   |   | (705 | ) |   |   | (2,628 | ) |   |   | (3,325 | ) |
| Plus: Net loss attributed to noncontrolling interest                                                                     |                           |               | 18                             |              |   |   | 339 |   |   |   | 56 |   |   |   | 1,288 |   |
|        Net loss attributed to MTI                                                          |                           | $                  | (884                           | )                 |   | $ | (366 | ) |   | $ |      (2,572 | ) |   | $ |      (2,037 | ) |
|                                                                                                                     |
| Loss per Share attributed to MTI (Basic and Diluted):                                                                    |                           |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per share attributed to MTI                                                                                         |                           | $                  | (.19                           | )                 |   | $ | (.08 | ) |   | $ | (.54 | ) |   | $ | (.43 | ) |
|                                                                                                                     |

----

| (Dollars in thousands)                                                                                    |                           | Nine Months Ended |
|-----------------------------------------------------------------------------------------------------------|--------------------------------|-------------------|
|                                                                                                      |                           | September 30,     |
|                                                                                                      |       | 2009              |       | 2010 |
| Common Stock                                                                                              |                           |              |   |   |   |   |   |   |
|        Balance, beginning                                                   |                           | $                 | 58 |   |   | $ | 58 |   |
|        Balance, ending                                                      |                           | $                 | 58 |   |   | $ | 58 |   |
|                                                                                                      |
| Paid-In Capital                                                                                           |                           |              |   |   |   |   |   |   |
|        Balance, beginning                                                   |                           | $                 |      132,781 |   |   | $ |      133,286 |   |
|               Stock-based compensation   |                           |              | 440 |   |   |   | 1,343 |   |
|        Balance, ending                                                      |                           | $                 | 133,221 |   |   | $ | 134,629 |   |
|                                                                                                 |
| Accumulated Deficit                                                                                       |                           |              |   |   |   |   |   |   |
|        Balance, beginning                                                   |                           | $                 | (117,570 | ) |   | $ | (120,724 | ) |
|               Net loss                   |                           |              | (2,572 | ) |   |   | (2,037 | ) |
|        Balance, ending                                                      |                           | $                 | (120,142 | ) |   | $ | (122,761 | ) |
|                                                                                                      |
| Treasury Stock                                                                                            |                           |              |   |   |   |   |   |   |
|        Balance, beginning                                                   |                           | $                 | (13,754 | ) |   | $ | (13,754 | ) |
|        Balance, ending                                                      |                           | $                 | (13,754 | ) |   | $ | (13,754 | ) |
|                                                                                                      |
| Noncontrolling Interest (NCI)                                                                             |                           |              |   |   |   |   |   |   |
|        Balance, beginning                                                   |                           | $                 | 11 |   |   | $ | 3,156 |   |
|               Equity contribution        |                           |              | — |   |   |   | 1,546 |   |
|               Net loss attributed to NCI |                           |              | (56 | ) |   |   | (1,288 | ) |
|        Balance, ending                                                      |                           | $                 | (45 | ) |   | $ | 3,414 |   |
|                                                                                                      |
| Total Stockholders’ Equity (deficit)                                                                |                           |              |   |   |   |   |   |   |
|        Balance, ending                                                      |                           | $                 | (662 | ) |   | $ | (1,828 | ) |
|                                                                                                      |
| Total Comprehensive (Loss)                                                                                |                           |              |   |   |   |   |   |   |
|        Net loss                                                             |                           | $                 | (2,572 | ) |   | $ | (2,037 | ) |
|               Other comprehensive (loss) |                           |              | — |   |   |   | — |   |
|        Total comprehensive (loss)                                           |                           | $                 | (2,572 | ) |   | $ | (2,037 | ) |
|                                                                                                      |

----

| (Dollars in thousands)                                                               | Nine Months Ended September 30, |
|--------------------------------------------------------------------------------------|---------------------------------|
|                                                                                 | 2009                            |       | 2010 |
| Operating Activities                                                                 |                            |   |   |   |   |   |   |
| Net loss                                                                             | $                               | (2,628 | ) |   | $ | (3,325 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities:          |                            |   |   |   |   |   |   |
|        (Gain) loss on derivatives                      |                            | 118 |   |   |   | (14 | ) |
|        Depreciation and amortization                   |                            | 486 |   |   |   | 371 |   |
|        Stock based compensation                        |                            | 440 |   |   |   | 1,343 |   |
| Changes in operating assets and liabilities:                                         |                            |   |   |   |   |   |   |
|        Accounts receivable                             |                            | (128 | ) |   |   | 125 |   |
|        Inventories                                     |                            | 442 |   |   |   | (101 | ) |
|        Prepaid expenses and other current assets       |                            | (32 | ) |   |   | (108 | ) |
|        Accounts payable                                |                            | 35 |   |   |   | 87 |   |
|        Income taxes payable                            |                            | (216 | ) |   |   | — |   |
|        Deferred revenue                                |                            | 2 |   |   |   | 2 |   |
|        Accrued liabilities – related parties     |                            | (314 | ) |   |   | — |   |
|        Accrued liabilities                             |                            | 171 |   |   |   | (106 | ) |
| Net cash used by operating activities                                                |                            |             (1,624 | ) |   |   |             (1,726 | ) |
|                                                                                 |                            |   |   |   |   |   |   |
| Investing Activities                                                                 |                            |   |   |   |   |   |   |
|        Purchases of property, plant and equipment      |                            | — |   |   |   | (31 | ) |
| Net cash used by investing activities                                                |                            | — |   |   |   | (31 | ) |
|                                                                                 |                            |   |   |   |   |   |   |
| Financing Activities                                                                 |                            |   |   |   |   |   |   |
|        Net borrowings on related party debt            |                            | 1,210 |   |   |   | — |   |
|        Proceeds from capital raise and warrants issued |                            | — |   |   |   | 1,546 |   |
| Net cash used in financing activities                                                |                            | 1,210 |   |   |   | 1,546 |   |
| Increase (Decrease) in cash and cash equivalents                                     |                            | (414 | ) |   |   | (211 | ) |
| Cash and cash equivalents - beginning of period                                      |                            | 1,662 |   |   |   | 785 |   |
| Cash and cash equivalents - end of period                                            | $                               | 1,248 |   |   | $ | 574 |   |
|                                                                                 |

----

----

-  obtain additional government or private funding of the Company’s direct methanol fuel cell research, development, manufacturing readiness and commercialization; 
-  secure additional debt or equity financing; or 
-  further reduce its current expenditure run-rate.  

----

| (Dollars in thousands)                                         |                      |                           |            | Test and                       |    |         |   |                              |
|----------------------------------------------------------------|---------------------------|--------------------------------|-----------------|--------------------------------|---------|--------------|--------|-----------------------------------|
|                                                           |                      |                           |            | Measurement                    |    | Consolidated |
|                                                           | New Energy                |       | Instrumentation |       | Totals  |
| December 31, 2009                                              |                      |                           |            |                           |    |         |   |                              |   |   |
| U.S. and State Government                                      | $                         | 143                            |            | $                              | — |         |   | $                                 | 143 |   |
| Commercial                                                     |                      | —                        |            |                           | 1,091   |         |   |                              | 1,091 |   |
|        Total Accounts Receivable |                      | 143                            |            |                           | 1,091   |         |   |                              | 1,234 |   |
| Less: Allowance for Doubtful Accounts                          |                      | —                        |            |                           | (92     | )            |   |                              | (92 | ) |
|        Total                     | $     | 143                            |            | $          | 999     |         |   | $        | 1,142 |   |
|                                                           |
| September 30, 2010                                             |                      |                           |            |                           |    |         |   |                              |   |   |
| U.S. and State Government                                      | $                         | 239                            |            | $                              | 53      |         |   | $                                 | 292 |   |
| Commercial                                                     |                      | —                        |            |                           | 725     |         |   |                              | 725 |   |
|        Total Accounts Receivable |                      | 239                            |            |                           | 778     |         |   |                              | 1,017 |   |
| Less: Allowance for Doubtful Accounts                          |                      | —                        |            |                           | — |         |   |                              | — |   |
|        Total                     | $                         | 239                            |            | $                              | 778     |         |   | $                                 | 1,017 |   |
|                                                           |                      |                           |            |                           |    |         |   |                              |   |   |

| (Dollars in thousands) | December                  |                           | September |
|------------------------|---------------------------|--------------------------------|-----------|
|                   | 31, 2009                  |       | 30, 2010  |
| Finished goods         | $     | 465                            |      | $     | 259 |
| Work in process        |                      | 193                            |      |   | 262 |
| Raw materials, net     |                      | 131                            |      |   | 369 |
|                   | $                         | 789                            |      | $ | 890 |
|                   |                      |                           |      |   |   |

----

|                                                  | Three Months Ended |                           | Nine Months Ended |
|-------------------------------------------------------|--------------------|--------------------------------|-------------------|
|                                                  | September 30,      |                           | September 30,     |
|                                                  | 2009               |       | 2010              |       | 2009 |       | 2010 |
| Federal statutory tax rate                            | 34.00              | %                              |              | 34.00 | % |   | 34.00 | % |   | 34.00 | % |
| State taxes, net of federal tax effect                | 5.00               |                           |              | 5.97 |   |   | 5.77 |   |   | 6.04 |   |
| Change in valuation allowance                         | (33.37             | )                              |              | (39.78 | ) |   | (38.34 | ) |   | (40.18 | ) |
| Minimum State Income Tax YTD – Estimated        | —            |                           |              | — |   |   | .12 |   |   | — |   |
| Reversal of Uncertain Tax Position for NYS Settlement | —            |                           |              | — |   |   | 6.86 |   |   | — |   |
| Permanent tax difference on derivative valuation      | (5.65              | )                              |              | (.19 | ) |   | (1.42 | ) |   | .14 |   |
| Other, net                                            | .02                |                           |              | — |   |   | .05 |   |   | — |   |
| Tax rate                                              | 0.00               | %                              |              | 0.00 | % |   | 7.04 | % |   | 0.00 | % |
|                                                  |               |                           |              |   |   |   |   |   |   |   |   |

| (Dollars in thousands)                       | Three Months Ended        |                           | Nine Months Ended |
|----------------------------------------------|---------------------------|--------------------------------|-------------------|
|                                         | September 30,             |                           | September 30,     |
|                                         | 2009                      |       | 2010              |       | 2009 |       | 2010 |
| Operations before noncontrolling interest    |                      |                           |              |   |   |   |   |   |   |   |   |
|        Federal | $     | —                        |              | $     | — |   | $     | — |   | $     | — |
|        State   |                      | —                        |              |   | — |   |   | 199 |   |   | — |
|        Total   | $                         | —                        |              | $ | — |   | $ | 199 |   | $ | — |
|                                         |                      |                           |              |   |   |   |   |   |   |   |   |

----

|               | Year Ended        |                           | Nine Months Ended  |
|--------------------|-------------------|--------------------------------|--------------------|
|               | December 31, 2009 |       | September 30, 2010 |
| Common Shares      |              |                           |               |
| Balance, beginning | 5,776,750         |                           | 5,776,750          |
| Balance, ending    | 5,776,750         |                           | 5,776,750          |
|               |
| Treasury Stock     |              |                           |               |
| Balance, beginning | 1,005,092         |                           | 1,005,092          |
| Balance, ending    | 1,005,092         |                           | 1,005,092          |
|               |              |                           |               |

|                                                                                                          | December 31, |                           | September 30, |                           |       |
|---------------------------------------------------------------------------------------------------------------|--------------|--------------------------------|---------------|--------------------------------|------------|
|                                                                                                          | 2009         |       | 2010          |       | Expiration |
| Derivatives issued:                                                                                           |         |                           |          |                           |       |
| Warrants, exercisable beginning June 20, 2007, to purchase the Company’s                                |         |                           |          |                           |       |
|        common stock issued to three investors at a purchase price of $18.16 per |         |                           |          |                           |       |
|        share                                                                    | 378,472      |                           | 378,472       |                           | 12/19/2011 |

----

|                                     | December 31, |       | September 30, |
|------------------------------------------|--------------|--------------------------------|---------------|
|                                     | 2009         |                           | 2010          |
| Expected life of option (number of days) | 730          |                           |          | 456 |   |
| Risk-free interest rate                  | 1.14         | %                              |          | 0.42 | % |
| Expected volatility of stock             | 162.7        | %                              |          | 206.6 | % |
| Expected dividend yield                  | None         |                           |          | None |   |

| Stock options outstanding            | 897,208   |
|--------------------------------------|-----------|
| Stock options available for issuance | 119,341   |
| Warrants outstanding                 | 378,472   |
| Number of common shares reserved     | 1,395,021 |
|                                 |      |

| (Dollars in thousands, except shares)                               | Three Months Ended |                           | Nine Months Ended |
|---------------------------------------------------------------------|--------------------|--------------------------------|-------------------|
|                                                                | September 30,      |                           | September 30,     |
|                                                                | 2009               |       | 2010              |       | 2009 |       | 2010 |
| Numerator:                                                          |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                            | $                  | (884                           | )                 |   | $ | (366 | ) |   | $ | (2,572 | ) |   | $ | (2,037 | ) |
|                                                                |
| Denominator:                                                        |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS:                                                          |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares outstanding, beginning of period                      |               | 4,771,658                      |              |   |   | 4,771,658 |   |   |   | 4,771,658 |   |   |   | 4,771,658 |   |
| Less Weighted average non-vested restricted stock                   |               | —                        |              |   |   | — |   |   |   | — |   |   |   | — |   |
| Denominator for basic earnings per common shares –            |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Weighted average common shares |               | 4,771,658                      |              |   |   | 4,771,658 |   |   |   | 4,771,658 |   |   |   | 4,771,658 |   |
|                                                                |
| Diluted EPS:                                                        |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Common shares outstanding, beginning of period                      |               | 4,771,658                      |              |   |   | 4,771,658 |   |   |   | 4,771,658 |   |   |   | 4,771,658 |   |
| Less weighted average non-vested restricted stock due to anti-      |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        dilutive effect                |               | —                        |              |   |   | — |   |   |   | — |   |   |   | — |   |
| Denominator for diluted earnings per common shares –          |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Weighted average common shares |               | 4,771,658                      |              |   |   | 4,771,658 |   |   |   | 4,771,658 |   |   |   | 4,771,658 |   |
|                                                                |               |                           |              |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                        |                      |                     |   | MTI                      |      | Non Controlling Interest |   |                     |
|-----------------------------------------------------------------------------------------------------------------------------|---------------------------|--------------------------|--------|--------------------------|-----------|--------------------------|--------|--------------------------|
|                                                                                                                        | Average                   |      |   |      | Ownership |      |   |      | Ownership |      |   |
|                                                                                                                        | Price                     |                     | Shares |                     | %         |                     | Shares |                     | % |   | Total Shares |
| Balance at 12/31/2007                                                                                                       |                      |                     |   | 46,030,453               |      | 96.3                     |   | 1,750,345                |   | 3.7 |   | 47,780,798 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|        Stock issued for MTI Options to MFC Employees                                          | $     | 0.45                     |   | 31,469                   |      |                     |   |                     |   |   |   | 31,469 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|               Transfer of Plug Power securities to MFC     | $                         | 0.35                     |   | 7,319,181                |      |                     |   |                     |   |   |   | 7,319,181 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|               Conversion of Loan Receivable                | $                         | 0.24                     |   | 10,416,667               |      |                     |   |                     |   |   |   | 10,416,667 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
| Balance at 12/31/08                                                                                                         |                      |                     |   | 63,797,770               |      | 97.3                     |   | 1,750,345                |   | 2.7 |   | 65,548,115 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|        Stock issued for MTI Options to MFC Employees                                          | $                         | 0.14                     |   | 10,501                   |      |                     |   |                     |   |   |   | 10,501 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|               Conversion of Bridge Loan                    | $                         | 0.07                     |   | 11,241,666               |      |                     |   | 44,622,759               |   |   |   | 55,864,425 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
| Balance at 12/31/09                                                                                                         |                      |                     |   | 75,049,937               |      | 61.8                     |   | 46,373,104               |   | 38.2 |   | 121,423,041 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
|               Common Stock issued under Purchase Agreement | $                         | 0.07                     |   |                     |      |                     |   | 22,095,243               |   |   |   | 22,095,243 |
|                                                                                                                        |                      |                     |   |                     |      |                     |   |                     |   |   |   |   |
| Balance at 09/30/10                                                                                                         |                      |                     |   | 75,049,937               |      | 52.29                    |   | 68,468,347               |   | 47.71 |   | 143,518,284 |

----

| Option term                   | 5 years |
|-------------------------------|---------|
| Volatility                    |    | 115 | % |
| Risk-free interest rate       |    | 1.46 | % |
| Dividend yield                |    | 0 | % |
| Fair value per option granted | $       | 0.07 |

| Option term                   | 5 years |
|-------------------------------|---------|
| Volatility                    |    | 115 | % |
| Risk-free interest rate       |    | 2.39 | % |
| Dividend yield                |    | 0 | % |
| Fair value per option granted | $       | 0.07 |

----

| Level 1: |   | Quoted market prices in active markets for identical assets or liabilities, which includes listed equities.                                                                                                                                                                                                                                                                                 |
|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| Level 2: |   | Observable market based inputs or unobservable inputs that are corroborated by market data. These items are typically priced using models or other valuation techniques. These models are primarily financial industry-standard models that consider various assumptions, including the time value of money, yield curves, volatility factors, as well as other relevant economic measures. |
|     |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| Level 3: |   | These use unobservable inputs that are not corroborated by market data. These values are generally estimated based upon methodologies utilizing significant inputs that are generally less observable from objective sources.                                                                                                                                                               |

| (Dollars in thousands)                                    |                      |                           |    |                           |    |                           |                      |   |   |                      |   |
|-----------------------------------------------------------|---------------------------|--------------------------------|---------|--------------------------------|---------|--------------------------------|---------------------------|--------|--------|---------------------------|--------|
|                                                      |                      |                           |    |                           |    |                           |                      |   |   | Balance at                |
| Balance Sheet Classification                              | Level 1                   |       | Level 2 |       | Level 3 |       | Sept. 30, 2010            |
| Financial Liabilities:                                    |                      |                           |    |                           |    |                           |                      |   |   |                      |   |
|        Derivative liability | $     | —                        |    | $          | — |                           | $     | 56     |   | $     | 56     |
| Total fair value of liabilities                           | $                         | —                        |    | $                              | — |                           | $                         | 56     |   | $                         | 56     |
|                                                      |                      |                           |    |                           |    |                           |                      |   |   |                      |   |

| (Dollars in thousands)                                    |                      |                           |         |                           |             |                           |                      |    |   |                      |   |
|-----------------------------------------------------------|---------------------------|--------------------------------|--------------|--------------------------------|------------------|--------------------------------|---------------------------|---------|--------|---------------------------|--------|
|                                                      |                      |                           |         | Total (Gains) /                |             |                           |                      |    |   |                      |
|                                                      | Beginning                 |                           | Losses       |                           | Purchases,       |                           | Ending                    |
|                                                      | Balance as of             |       | Realized and |       | Issuances, Sales |       | Balance as of             |
| Instrument                                                | Jan. 1, 2009              |                           | Unrealized   |                           | and Settlements  |                           | Dec. 31, 2009             |
|        Derivative liability | $     | 41                             |         | $          | 29               |                           | $     | — |   | $     | 70     |
| Total Level 3 instruments                                 | $                         | 41                             |         | $                              | 29               |                           | $                         | — |   | $                         | 70     |
|                                                      |                      |                           |         |                           |             |                           |                      |    |   |                      |   |

| (Dollars in thousands)                                    |                      |                           |         |                           |             |                           |           |                      |    |   |                      |   |
|-----------------------------------------------------------|---------------------------|--------------------------------|--------------|--------------------------------|------------------|--------------------------------|----------------|---------------------------|---------|--------|---------------------------|--------|
|                                                      |                      |                           |         | Total (Gains) /                |             |                           |           |                      |    |   |
|                                                      | Beginning                 |                           | Losses       |                           | Purchases,       |                           | Ending         |
|                                                      | Balance as of             |                           | Realized and |                           | Issuances, Sales |                           | Balance as of  |
| Instrument                                                | Jan. 1, 2010              |       | Unrealized   |       | and Settlements  |       | Sept. 30, 2010 |
|        Derivative liability | $     | 70                             |         | $          | (14              | )                              |           | $     | — |   | $     | 56     |
| Total Level 3 instruments                                 | $                         | 70                             |         | $                              | (14              | )                              |           | $                         | — |   | $                         | 56     |
|                                                      |                      |                           |         |                           |             |                           |           |                      |    |   |                      |   |

----

| (Dollars in thousands)                                                        |                      |                     |            |                     | Test and                  |                     |   |                      |    |   |        |                      |         |   | Condensed |
|-------------------------------------------------------------------------------|---------------------------|--------------------------|-----------------|--------------------------|---------------------------|--------------------------|--------|---------------------------|---------|--------|-------------|---------------------------|--------------|--------|-----------|
|                                                                          |                      |                     |            |                     | Measurement               |                     |   |                      |    |   | Reconciling |                      | Consolidated |
|                                                                          | New Energy                |      | Instrumentation |      | Other                     |      | Items  |       | Totals  |
| Three months ended September 30, 2009                                         |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
| Product revenue                                                               | $     | —                  |            |                     | $     | 1,439                    |   | $     | — |   |        | $     | —      |   |      | $     | 1,439 |   |
| Funded research and development revenue                                       |                      | 526                      |            |                     |                      | —                  |   |                      | — |   |        |                      | —      |   |      |   | 526 |   |
| Research and product development expenses                                     |                      | 1,129                    |            |                     |                      | 217                      |   |                      | — |   |        |                      | —      |   |      |   | 1,346 |   |
| Selling, general and administrative expenses                                  |                      | (35                      | )               |                     |                      | 384                      |   |                      | 349     |   |        |                      | —      |   |      |   | 698 |   |
| Segment loss from operations before income taxes                              |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
|        and noncontrolling interest              |                      | (688                     | )               |                     |                      | 130                      |   |                      | (344    | )      |        |                      | —      |   |      |   | (902 | ) |
| Segment (loss) profit                                                         |                      | (688                     | )               |                     |                      | 130                      |   |                      | (344    | )      |        |                      | 18           |   |      |   | (884 | ) |
| Total assets                                                                  |                      | 1,704                    |            |                     |                      | 1,783                    |   |                      | 1,616   |   |        |                      | (774         | )      |      |   | 4,329 |   |
| Depreciation and amortization                                                 |                      | 116                      |            |                     |                      | 25                       |   |                      | 10      |   |        |                      | —      |   |      |   | 151 |   |
|                                                                          |
| Three months ended September 30, 2010                                         |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
| Product revenue                                                               | $                         | —                  |            |                     |                      | 1,646                    |   |                      | — |   |        |                      | —      |   |      |   | 1,646 |   |
| Funded research and development revenue                                       |                      | 334                      |            |                     |                      | —                  |   |                      | — |   |        |                      | —      |   |      |   | 334 |   |
| Research and product development expenses                                     |                      | 605                      |            |                     |                      | 224                      |   |                      | — |   |        |                      | —      |   |      |   | 829 |   |
| Selling, general and administrative expenses                                  |                      | 439                      |            |                     |                      | 476                      |   |                      | 254     |   |        |                      | —      |   |      |   | 1,169 |   |
| Segment (loss) / profit from operations before                                |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
|        income taxes and noncontrolling interest |                      | (719                     | )               |                     |                      | 179                      |   |                      | (164    | )      |        |                      | —      |   |      |   | (704 | ) |
| Segment (loss) profit                                                         |                      | (719                     | )               |                     |                      | 179                      |   |                      | (164    | )      |        |                      | 338          |   |      |   | (366 | ) |
| Total assets                                                                  |                      | 866                      |            |                     |                      | 1,814                    |   |                      | 594     |   |        |                      | —      |   |      |   | 3,274 |   |
| Capital expenditures                                                          |                      | —                  |            |                     |                      | 5                        |   |                      | — |   |        |                      | —      |   |      |   | 5 |   |
| Depreciation and amortization                                                 |                      | 94                       |            |                     |                      | 18                       |   |                      | 3       |   |        |                      | —      |   |      |   | 115 |   |
|                                                                          |
| Nine months ended September 30, 2009                                          |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
| Product revenue                                                               | $                         | —                  |            |                     | $                         | 4,298                    |   | $                         | — |   |        | $                         | —      |   |      | $ | 4,298 |   |
| Funded research and development revenue                                       |                      | 1,584                    |            |                     |                      | —                  |   |                      | — |   |        |                      | —      |   |      |   | 1,584 |   |
| Research and product development expenses                                     |                      | 3,451                    |            |                     |                      | 753                      |   |                      | — |   |        |                      | —      |   |      |   | 4,204 |   |
| Selling, general and administrative expenses                                  |                      | 2                        |            |                     |                      | 1,254                    |   |                      | 1,087   |   |        |                      | —      |   |      |   | 2,343 |   |
| Segment (loss) / profit from operations before                                |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
|        income taxes and noncontrolling interest |                      | (2,127                   | )               |                     |                      | 105                      |   |                      | (805    | )      |        |                      | —      |   |      |   | (2,827 | ) |
| Segment (loss) profit                                                         |                      | (2,127                   | )               |                     |                      | 105                      |   |                      | (606    | )      |        |                      | 56           |   |      |   | (2,572 | ) |
| Total assets                                                                  |                      | 1,704                    |            |                     |                      | 1,783                    |   |                      | 1,616   |   |        |                      | (774         | )      |      |   | 4,329 |   |
| Depreciation and amortization                                                 |                      | 372                      |            |                     |                      | 79                       |   |                      | 35      |   |        |                      | —      |   |      |   | 486 |   |
|                                                                          |
| Nine months ended September 30, 2010                                          |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
| Product revenue                                                               | $                         | —                  |            |                     |                      | 4,541                    |   |                      | — |   |        |                      | —      |   |      |   | 4,541 |   |
| Funded research and development revenue                                       |                      | 1,108                    |            |                     |                      | —                  |   |                      | — |   |        |                      | —      |   |      |   | 1,108 |   |
| Research and product development expenses                                     |                      | 2,404                    |            |                     |                      | 728                      |   |                      | — |   |        |                      | —      |   |      |   | 3,132 |   |
| Selling, general and administrative expenses                                  |                      | 1,612                    |            |                     |                      | 1,454                    |   |                      | 809     |   |        |                      | —      |   |      |   | 3,875 |   |
| Segment (loss) / profit from operations before                                |                      |                     |            |                     |                      |                     |   |                      |    |   |        |                      |         |   |      |   |   |   |
|        income taxes and noncontrolling interest |                      | (2,945                   | )               |                     |                      | 93                       |   |                      | (473    | )      |        |                      | —      |   |      |   | (3,325 | ) |
| Segment (loss) profit                                                         |                      | (2,945                   | )               |                     |                      | 93                       |   |                      | (473    | )      |        |                      | 1,288        |   |      |   | (2,037 | ) |
| Total assets                                                                  |                      | 866                      |            |                     |                      | 1,814                    |   |                      | 594     |   |        |                      | —      |   |      |   | 3,274 |   |
| Capital expenditures                                                          |                      | —                  |            |                     |                      | 31                       |   |                      | — |   |        |                      | —      |   |      |   | 31 |   |
| Depreciation and amortization                                                 |                      | 296                      |            |                     |                      | 63                       |   |                      | 12      |   |        |                      | —      |   |      |   | 371 |   |

----

| (Dollars in thousands)                                             |                           | Three Months Ended |                                      | Nine Months Ended |
|--------------------------------------------------------------------|--------------------------------|--------------------|-------------------------------------------|-------------------|
|                                                               |                           | September 30,      |                                      | September 30,     |
|                                                               |       | 2009               |                  | 2010              |       | 2009 |       | 2010 |
| Corporate and other (expenses) income:                             |                           |               |                                      |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Depreciation and amortization |                           | $                  | (10                                       | )                 |   | $ | (3 | ) |   | $ | (35 | ) |   | $ | (12 | ) |
|        Interest income               |                           |               | 18                                        |              |   |   | — |   |   |   | 54 |   |   |   | — |   |
|        (Gain) loss on derivatives    |                           |               |        (150 | )                 |   |   | (4 | ) |   |   | (118 | ) |   |   | 14 |   |
|        Income tax (expense) benefit  |                           |               | —                                   |              |   |   | — |   |   |   | 199 |   |   |   | — |   |
|        Other expense, net            |                           |               | (202                                      | )                 |   |   |        (157 | ) |   |   |        (706 | ) |   |   |        (475 | ) |
| Total income (expense)                                             |                           | $                  | (344                                      | )                 |   | $ | (164 | ) |   | $ | (606 | ) |   | $ | (473 | ) |
|                                                               |

| (Dollars in thousands)                |                           | Nine Months Ended                     |
|---------------------------------------|--------------------------------|---------------------------------------|
|                                  |                           | September 30,                         |
|                                  |       | 2009                                  |       | 2010 |
| Balance, January 1                    |                           | $       | 31 |   |   | $       | 21 |   |
| Accruals for warranties issued        |                           |                                  | 21 |   |   |   | 23 |   |
| Settlements made (in cash or in kind) |                           |                                  | (12 | ) |   |   | (17 | ) |
| Balance, end of period                |                           | $                                     | 40 |   |   | $ | 27 |   |
|                                  |

----

----

----

|                                      |                           | Nine Months Ended |
|-------------------------------------------|--------------------------------|-------------------|
| (Dollars in thousands)                    |                           | September 30,     |
|                                      |       | 2009              |       | 2010 |
| Cash and cash equivalents                 |                           | $                 | 1,248 |   |   | $ | 574 |   |
| Working capital (deficit)                 |                           |              |        (1,545 | ) |   |   | 1,123 |   |
| Net loss attributed to MTI                |                           |              | (2,572 | ) |   |   |        (2,037 | ) |
| Net cash used in operating activities     |                           |              | (1,624 | ) |   |   | (1,726 | ) |
| Purchase of property, plant and equipment |                           |              | — |   |   |   | 31 |   |

----

----

| (Dollars in thousands)                                       |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |
|--------------------------------------------------------------|--------------------------------|------------|--------------------------------|--------|--------------------------------|---------|--------------------------------|----------------|--------------------------------|----------------|--------|--------|--------|----------------|
|                                                         |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   | Total Contract |
|                                                         |                           |       |                           |   | Revenues for the               |    | Revenue                        |           | Orders Received                |
|                                                         |                           |       |                           |   | Three Months Ended Sept. 30,   |    | Contract to Date               |           | to Date                        |
| Contract (1)                                                 |       | Expiration |       | 2009   |       | 2010    |       | Sept. 30, 2010 |       | Sept. 30, 2010 |
| $2.3 million Air Force New PBS-4100                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 07/28/2010 |  (2)                      |   | $                              | 57      |                           | $              | 57                             |           | $      | 2,166  |   | $              | 2,166 |
| $8.8 million Air Force Retrofit and                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Maintenance of PBS-4100 |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 06/19/2008 |  (3)                      |   | $                              | — |                           | $              | —                        |           | $      | 8,009  |   | $              | 8,009 |
| $6.5 million Air Force Retrofit and                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Maintenance of PBS-4100 |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 09/27/2014 |  (4)                      |   | $                              | — |                           | $              | 170                            |           | $      | 1,196  |   | $              | 1,657 |
|                                                         |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|                                                         |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
| (Dollars in thousands)                                       |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|                                                         |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   | Total Contract |
|                                                         |                           |       |                           |   | Revenues for the               |    | Revenue                        |           | Orders Received                |
|                                                         |                           |       |                           |   | Nine Months Ended Sept. 30,    |    | Contract to Date               |           | to Date                        |
| Contract (1)                                                 |                           | Expiration |                           | 2009   |                           | 2010    |                           | Sept. 30, 2010 |                           | Sept. 30, 2010 |
| $2.3 million Air Force New PBS-4100                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 07/28/2010 |  (2)                      |   | $                              | 513     |                           | $              | 57                             |           | $      | 2,166  |   | $              | 2,166 |
| $8.8 million Air Force Retrofit and                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Maintenance of PBS-4100 |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 06/19/2008 |  (3)                      |   | $                              | 50      |                           | $              | —                        |           | $      | 8,009  |   | $              | 8,009 |
| $6.5 million Air Force Retrofit and                          |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Maintenance of PBS-4100 |                           |       |                           |   |                           |    |                           |           |                           |           |   |   |   |           |   |
|        Systems                 |                           | 09/27/2014 |  (4)                      |   | $                              | — |                           | $              | 757                            |           | $      | 1,196  |   | $              | 1,657 |

| (1) |                                 | Contract values represent maximum potential values and may not be representative of actual results.   |
|-----|--------------------------------------|-------------------------------------------------------------------------------------------------------|
| (2) |                                 | Date represents expiration of contract, including all three potential option extensions.              |
| (3) |                                 | The contract expiration date has passed, however, one delivery order remains open under the contract. |
| (4) |        | Date represents expiration of contract, including all four potential option extensions.               |

----

| (Dollars in thousands) |                           |           |                           |           |                           |      |                           |           |                           |      |                                  |           |
|------------------------|--------------------------------|----------------|--------------------------------|----------------|--------------------------------|-----------|--------------------------------|----------------|--------------------------------|-----------|---------------------------------------|----------------|
|                   |                           |           |                           | Revenue        |                           |      |                           | Revenue        |                           |      |                                  | Revenue        |
|                   |                           |           |                           | Nine Months    |                           |      |                           | Nine Months    |                           |      |                                  | Contract to    |
|                   |                           |           |                           | Ended          |                           | % of 2009 |                           | Ended          |                           | % of 2010 |                                  | Date           |
| Contract               |       | Expiration (1) |       | Sept. 30, 2009 |       | Total     |       | Sept. 30, 2010 |       | Total     |         | Sept. 30, 2010 |
| $2.99 million DOE (2)  |                           | 12/31/10       |                           | $              | 1,584                          |      | 100%                           |           | $                              | 905       |                                  | 82%            |   | $ | 2,948 |
| $296 thousand NYSERDA  |                           | 12/31/10       |                           |           |                           |      |                           |           |                           | 204       |                                  | 18             |   |   | 204 |

| (1) |                                 | Dates represent expiration of contract, not date of final billing. |
|-----|--------------------------------------|--------------------------------------------------------------------|
| (2) |        | The DOE contract is a cost share contract.                         |

----

|                                               |        | 2009 |        | 2010 |         | Change |
|----------------------------------------------------|--------------------------------------|------|--------------------------------------|------|--------------------------------------------|--------|
| Inventory turnover                                 |                                 | 1.7  |                                 | 3.1  |                                       | 1.4    |
| Average accounts receivable days sales outstanding |                                 | 38   |                                 | 41   |                                       | 3      |

----

|                                                     |                           | Less                            |                           |   |                            |   |                           |                            |                           | More   |                            |    |   |
|----------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|--------|--------------------------------|---------------------------------|--------------------------------|--------|---------------------------------|---------|--------|
| Contractual Payment Obligations                          |                           | Than 1                          |                           | 1-3    |                            | 3-5    |                           | Than 5                          |                           |   |                            |
| (in thousands)                                           |       | Year                            |       | Years  |        | Years  |       | Years                           |       | Total  |
| Operating Leases / Total Contractual Payment Obligations |                           | $      | 941                            |   | $      | 568    |                           | $      | 350                            |   | $      | — |   | $      | 1,859 |
|                                                     |                           |                            |                           |   |                            |   |                           |                            |                           |   |                            |    |   |   |   |

- our need to raise additional financing for our New Energy segment; 
- our history of recurring net losses and the risk of continued net losses; 
- our independent auditors have included a going concern paragraph in their opinion; 
- sales revenue growth of our test and measurement instrumentation business may not be achieved; 
- the dependence of our test and measurement instrumentation business on a small number of customers and potential loss of government funding; 
- our ownership position in MTI Micro may be further reduced as a result of our need to seek external financing for MTI Micro’s operations: 
- risks related to developing Mobion direct methanol fuel cells and whether we will ever successfully develop reliable and commercially viable Mobion fuel cell solutions; 
- our portable power source products or our customers’ products that utilize our portable power source products may not be accepted by the market; 
- our inability to build and maintain relationships with our customers; 
- our limited experience in manufacturing fuel cell systems on a commercial basis; 

----

- our dependence on others for our production requirements for our portable power source products; 
- our dependence on our manufacturing subcontractors to maintain high levels of productivity and satisfactory delivery schedules for our portable power source products; 
- our dependence on third-party suppliers for most of the manufacturing equipment necessary to produce our portable power source products; 
- our inability to obtain sufficient quantities of components and other materials, including platinum and ruthenium, necessary for the production of our portable power source products; 
- our dependence on OEMs integrating Mobion fuel cell systems into their devices; 
- our lack of long-term purchase commitments from our customers and the ability of our customers to cancel, reduce, or delay orders for our products; 
- risks related to protection and infringement of intellectual property; 
- our new technologies may not result in customer or market acceptance; 
- our inability to commercialize our proposed portable power source solutions and develop new product solutions on a timely basis; 
- our inability to develop and utilize new technologies that address the needs of our customers; 
- intense competition in the direct methanol fuel cell and instrumentation businesses; 
- change in policies by U.S. or foreign governments that hinder, disrupt or economically disadvantage international trade; 
- the impact of future exchange rate fluctuations; 
- the uncertainty of the U.S. economy; 
- the historical volatility of our stock price; 
- the cyclical nature of the electronics industry; 
- failure of our strategic alliances to achieve their objectives or perform as contemplated and the risk of cancellation or early termination of such alliance by either party; 
- product liability or defects; 
- risks related to the flammable nature of methanol as a fuel source; 
- the loss of services of one or more of our key employees or the inability to hire, train, and retain key personnel; 
- significant periodic and seasonal quarterly fluctuations in our results of operations; 
- our dependence on sole suppliers or a limited group of suppliers for both business segments; 
- risks related to the limitation of the use of our net operating losses in the event of certain ownership changes; and 
- other factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and in Part II, Item 1A of this Quarterly Report on Form 10-Q. 

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- obtain additional government or private funding of the Company’s direct methanol fuel cell research, development, manufacturing readiness and commercialization;  
- secure additional debt or equity financing; or 
- further reduce its current expenditure run-rate. 

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| Exhibit No. |       | Description                                                                                                                                   |   |
|-------------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 31.1        |                           | Rule 13a-14(a)/15d-14(a) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Peng K. Lim                              |
|        |
| 31.2        |                           | Rule 13a-14(a)/15d-14(a) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Frederick W. Jones                       |
|        |
| 32.1        |                           | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Peng K. Lim        |
|        |
| 32.2        |                           | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Frederick W. Jones |

|                    |            | Mechanical Technology, Incorporated |
|-------------------------|-----------------|-------------------------------------|
|                    |
|                    |
| Date: November 15, 2010 | By:   | /S/ PENG K. LIM                     |
|                    |            | Peng K. Lim                         |
|                    |            | Chief Executive Officer             |
|                    |
|                    | By:             | /S/ FREDERICK W. JONES              |
|                    |            | Frederick W. Jones                  |
|                    |            | Acting Chief Financial Officer      |

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