Ruling Permitting Passengers and Crew to Carry Methanol Fuel Cell Cartridges as Carry-On Baggage

MTI MicroFuel Cells Inc., the developer of Mobion off-the-grid portable power solutions and a subsidiary of Mechanical Technology, Incorporated, and the Methanol Institute, the trade association of the global methanol industry, announced that the U.S. Department of Transportation today issued a final ruling that will permit passengers and crew to carry methanol fuel cell cartridges and fuel cell systems designed for portable electronic devices on board airplanes in carry-on baggage. The effective date of the ruling is October 1, 2008, although voluntary compliance with the ruling may commence as of May 30, 2008.

The final ruling prescribes regulations for transporting fuel cells containing methanol. Passengers will be permitted to carry approved fuel cells and up to two spare fuel cell cartridges in their carry-on baggage.

The ruling harmonizes U.S. transportation regulations with global regulations adopted by the International Civil Aviation Organization (“ICAO”) that went into effect on January 1, 2007. The DOT now joins agencies from a number of countries around the world, including Canada, China, Japan and the United Kingdom, which have already incorporated the passenger allowance into their national standards.

“Today the Department of Transportation removed the final barrier to transporting methanol fuel cells on board airplanes,” said Methanol Institute Vice President for Communications & Policy, Gregory Dolan. “Methanol and fuel cell industry leaders like MTI Micro, which have been working with international transportation regulators for several years to achieve this result, now have a clear endorsement that methanol fuel cell systems and fuel cell cartridges meet the world’s most rigorous safety standards.”

“This is an important step in the commercialization process of our Mobion® off-the-grid portable power solutions. We intend to commercialize our products in 2009 in accordance with the guidelines in the Department of Transportation ruling,” said Peng Lim, CEO of MTI. “This ruling supports our timeline for commercialization and validates our longstanding choice of methanol as a fuel.”

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