MECHANICAL TECHNOLOGY INC

MECHANICAL TECHNOLOGY INC

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Company Overview
Mechanical Technology Inc. (MTI) is engaged in the field of micro fuel cells and in the field of non-contact precision instrumentation through its subsidiaries. MTI was founded in 1961 by two entrepreneurial engineers dedicated to developing and commercializing new technologies. MTI is a publicly traded company on NASDAQ under the ticker symbol MKTY. The US-based company has its corporate headquarters located in Albany, New York.
Mechanical Technology’s subsidiaries are: MTI MicroFuel Cells Inc. (MTI Micro), the developer of the award winning Mobionr direct methanol micro fuel cell technology; and MTI Instruments Inc. (MTII), which specializes in the design, manufacture and service of non-contact precision test and measurement equipment. MTI Micro has a world-class team of entrepreneurial business executives, researchers and scientists; a number of system prototypes demonstrating size reductions and performance improvements; significant related intellectual property; and has received government awards and developed strategic partnerships to help accelerate commercialization. MTII’s three product lines provide a range of instrumentation systems for research, development and manufacturing: semiconductor systems including wafer metrology systems, engine balancing systems, and non-contact measurement systems. MTII is also engaged in the development and production of nanotechnology components and systems.
Mechanical Technology Inc. has developed a growing presence in the field of alternative energy technologies, starting with a 1997 joint venture with DTE energy to form Plug Power Inc., an independent company focused on stationary fuel cell development and manufacturing.
Business Summary
Mechanical Technology, Incorporated (MTI) is developing and commercializing off-the-grid rechargeable power sources for portable electronics. The Company operates in two segments: the New Energy segment which is conducted through MTI MicroFuel Cells Inc. (MTI Micro), a majority owned subsidiary, and the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly owned subsidiary. MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, condition based monitoring systems, portable balance equipment and wafer inspection tools. Its products consist of electronic gauging instruments for position, displacement and vibration application within the design, manufacturing/production, test and research market; wafer characterization of semi-insulating and semi-conducting wafers within both the semiconductor and solar industries.
Description and history
Mechanical Technology, Incorporated (MTI), incorporated in 1961, is developing and commercializing off-the-grid rechargeable power sources for portable electronics. The Company operates in two segments: the New Energy segment which is conducted through MTI MicroFuel Cells Inc. (MTI Micro), a majority owned subsidiary, and the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly owned subsidiary. MTI Instruments is a worldwide supplier of precision non-contact physical measurement solutions, condition based monitoring systems, portable balance equipment and wafer inspection tools. Its products consist of electronic gauging instruments for position, displacement and vibration application within the design, manufacturing/production, test and research market; wafer characterization of semi-insulating and semi-conducting wafers within both the semiconductor and solar industries; and engine vibration analysis systems for both military and commercial aircraft.

New Energy Segment

MTI Micro is developing and commercializing off-the-grid power solutions for various portable electronic devices. Its patented direct methanol fuel cell technology platform called Mobion, converts 100% methanol fuel to usable electricity capable of providing continuous power as long as necessary fuel flows are maintained. The fuel cell power solution consists of two primary components integrated into an easily manufactured device: the direct methanol fuel cell power engine, which it refers to as Mobion Chip, and methanol fuel cartridges.

MTI Micro is developing three product categories of its Mobion technology: external power charger products, snap-on or attached power source products and embedded power source products. In addition, the Company is working with its strategic partners and suppliers to develop removable methanol cartridges that will be used to fuel its portable power source products.

The Company’s design for an external power charger is a standalone device that uses a universal serial bus (USB) interface as a power output connector that can be used to recharge handheld mobile devices. It has also developed an embedded fuel cell concept model designed for a smart phone. The Company’s Mobion solution contains a passive water recirculation sub-system that allows for the consumption of 100% methanol, results in a reduced parts count design and offers the advantage of higher energy density than competing fuel cell technologies for portable electronic devices.

The Company’s snap-on direct methanol fuel cell power solution is an attached power supply that is compatible with existing portable electronic devices and offers users extended run-time power. In this category, the Company envisions a number of product applications, including attachments for digital cameras, portable media players, GPS devices, and other consumer and electronic products. Its Mobion direct methanol fuel cell camera grip allows photographers the benefits of extended usage plus the freedom to refill using a methanol cartridge rather than by plugging into a wall outlet.

The Company competes with Toshiba (Corporation)

Test and Measurement Instrumentation Segment

The Company’s test and measurement instrumentation segment consists of three product groups: general dimensional gauging, semiconductor/solar and aviation. The Precision Instruments employ fiber optic, laser and capacitance technologies to make nano-accurate measurements in product design and quality related processes. Gauging products include laser, fiber-optic and capacitance systems that measure a variety of parameters including displacement, position, vibration and dimension.

The Company’s family of wafer metrology systems range from manually operated units to fully automated systems. These units are used as quality control tools delivering precise measurements for thickness variations, bow, warp, resistivity and flatness. These systems can be used on substrates varying in size and materials. In addition, using push/pull capacitance probe technology, the Company has expanded its line of products to include product offerings to the solar industry for the measurement of solar wafer thickness.

The Company’s computer-based PBS products automatically collect and record aircraft engine vibration data, identify vibration or balance trouble in an engine, and calculate a solution to the problem. These units are used and recommended by major aircraft engine manufacturers and are also used by the United States Air Force, other military and commercial airlines and gas turbine manufacturers. Its aviation and industrial vibration measurement systems products include vibration analysis and engine trim balance instruments and accessories for commercial and military jets.

The Company competes with KLA-Tencor, Sigma Tech Corporation, E+H Eichhorn+Hausmann GmbH, Chadwick-Helmuth Company, Inc., ACES Systems, Micro-Epsilon and Keyence Corporation.

Founded by two entrepreneurial engineers dedicated to developing and commercializing new technologies

Business Line
Engaged in the field of micro fuel cells and in the field of non-contact precision instrumentation through its subsidiaries
Subsidiary
MTI INSTRUMENTS, INC.
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
8/1/1994
US SIC Code
3829
Company Address
431, New Karner Road

City province or state postal code
12205, ALBANY, NY
Phone: +1 518 533 2200
Fax: +1 518 218 2527
Country address: UNITED STATES OF AMERICA
Website url: www.mechtech.com