Mechanical Technology Reports Second-Quarter 2005 Loss

Mechanical Technology Inc. (Albany, NY), a developer of micro fuel cell technology for hand-held electronic devices, reported a net loss of about $2.8 million, or -$0.09 a diluted share, for the three months ended June 30, 2005. This compares to a net loss of about $1.4 million, -$0.05 a diluted share, in the year-ago quarter. The results for the most recent quarter include the $9.6 million the company gained by selling about 1.8 million in shares of fuel cell developer Plug Power Inc. to institutional investor Fletcher International Ltd. in late June. Also included was a $7.2 million loss on derivatives and a $1.5 million income tax expense.

Revenue for the quarter was about $1.7 million, up from about $1.4 million a year earlier. For the six months ended June 30, 2005, Mechanical Technology had a net loss of $8.8 million, or -$0.29 a diluted share, on revenue of about $3.4 million. This compares to a net loss of $1.6 million, or -$0.06 a diluted share, on revenue of about $3.4 million, a year earlier.