Fletcher International Invests $8 Million in MTI

Fletcher International Ltd. (Bermuda), a large institutional shareholders in Mechanical Technology Inc. (MTI, Albany, NY), announced that it has invested another $8 million in MTI. Fletcher purchased 1.26 million shares of MTI for $6.34 a share. The proceeds of the stock sale will be used primarily to support the operations of MTI Micro.

The $8 million investment was expected under MTI's private placement transaction with Fletcher, which closed in the first quarter of 2004. To date, Fletcher has invested a total of $18 million in MTI's stock. The investment company has the right to purchase up to an additional $20 million of MTI stock, at $6.34 a share, at any time prior to December 31, 2006.

Also as part of the agreement with Fletcher, MTI escrowed 2.7 million shares of stock in fuel cell developer Plug Power Inc., which Fletcher may buy between June 1, 2005, and December 31, 2006, at a potential discount to the market price.