UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(x) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year end December 31, 1998
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
Commission file number 0-6890
Mechanical Technology Incorporated MTI Savings and Retirement Plan
(Title of Plan)
Mechanical Technology Incorporated
(Issuer of Securities)
968 Albany-Shaker Road
Latham, New York 12110
(Address of Principal Executive Office)
<PAGE>
Item 4:
Page
____
Financial Statements
____________________
Mechanical Technology Incorporated MTI Savings and
Retirement Plan
Report of Independent Accountants 4
Statements of net assets available for benefits at
December 31, 1998 and 1997 5
Statement of changes in net assets available for
benefits for the years ended December 31, 1998
and 1997 6
Notes to financial statements 7-20
Supplemental schedule of assets held for
investment purposes 21
Supplement schedules of reportable transactions 22-23
Exhibits
Consent of Independent Accountants 24
<PAGE>
REQUIRED INFORMATION
Mechanical Technology Incorporated MTI Savings and Retirement Plan
(the "Plan") is subject to the Employee Retirement Income Security Act of
1974 ("ERISA"). Therefore, in lieu of the requirements of Items 1-3 of
Form 11-K, the financial statements and schedules of the Plan for the two
fiscal years ended December 31, 1998 and 1997, which have been prepared in
accordance with the financial reporting requirements of ERISA, are attached
hereto as Item 4 and incorporated herein by this reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Mechanical Technology Incorporated
MTI Savings and Retirement Plan
DATE: June 28, 1999 BY: s/Cynthia A. Scheuer
____________________
Cynthia A. Scheuer
Employer, as Plan Sponsor and
Plan Representative
<PAGE>
Report of Independent Accountants
To the Participants and Administrator of
Mechanical Technology Incorporated MTI Savings and Retirement Plan
In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available for
benefits present fairly, in all material respects, the net assets available
for benefits of Mechanical Technology Incorporated MTI Savings and Retirement
Plan (the "Plan") at December 31, 1998 and December 31, 1997, and the changes
in net assets available for benefits for the years then ended in conformity
with generally accepted accounting principles. These financial statements
are the responsibility of the Plan's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's management. The supplemental
schedules have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial
statements taken as a whole.
PricewaterhouseCoopers L.L.P
June 14, 1999
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS AND RETIREMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998 and December 31, 1997
DECEMBER 31,
1998 1997
____ ____
ASSETS
Cash and cash equivalents $ - $ 26,932
Investments in MTI stock fund,
at fair value
(cost 1998, $314) 327 -
Investments in registered
investment companies,
at fair value
(cost 1998, $14,633,054) 15,940,420 6,452,487
Investments in pooled
separate accounts, at
fair value - 1,421,185
Guaranteed investment
contracts, at contract value - 9,435,386
Participant notes receivable 92,352 173,262
____________ ___________
Total investments 16,033,099 17,482,320
Contributions receivable -
employer 5,191 2,688
Contributions receivable -
participants 11,997 6,284
____________ ____________
Total assets 16,050,287 17,518,224
____________ ____________
NET ASSETS AVAILABLE FOR BENEFITS $ 16,050,287 $ 17,518,224
============ ============
The accompanying notes are an integral part of the financial statements.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORTED
MTI SAVINGS AND RETIREMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Years Ended December 31, 1998 and December 31, 1997
DECEMBER 31,
1998 1997
____ ____
Additions to net assets attributed to:
Investment income:
Interest $ 809,753 $ 898,533
Net appreciation in fair
value of investments 1,969,991 1,749,481
___________ ____________
2,779,744 2,648,014
Less investment expenses 22,914 53,982
___________ ____________
Net investment income 2,756,830 2,594,032
___________ ____________
Contributions:
Employer 201,996 288,873
Participant 391,950 632,739
Rollovers - 5,797
___________ ____________
593,946 927,409
___________ ____________
Total additions 3,350,776 3,521,441
___________ ____________
Deductions from net assets attributed to:
Benefits paid to participants 4,804,745 4,626,552
Employee forfeitures 13,968 17,220
___________ ____________
Total deductions 4,818,713 4,643,772
___________ ____________
Net decrease prior to transfers (1,467,937) (1,122,331)
Transfer (Note 9) - (2,454,807)
___________ ____________
Net decrease (1,467,937) (3,577,138)
___________ ____________
Net assets available for benefits:
Beginning of year 17,518,224 21,095,362
___________ ____________
End of year $ 16,050,287 $ 17,518,224
=========== ============
The accompanying notes are an integral part of the financial statements.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS AND RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following brief description of the Mechanical Technology Incorporated
MTI Savings and Retirement Plan (Plan) provides only general information.
Participants should refer to the Plan agreement for more complete information.
A. General
The Plan is a defined contribution plan covering substantially all employees
of Mechanical Technology Incorporated (Plan Sponsor). Effective
July 1, 1998, employees are eligible to participate in the Plan after
completing 6 months of service and attaining the age of 21. Prior to
July 1, 1998, employees were eligible to participate upon the first day of
the month following completion of at least one thousand hours of service
during any consecutive twelve-month period commencing with the employee's
date of hire and the attainment of age 21. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA),
as amended.
B. Contributions
Participant contributions:
The Plan permits pre-tax (basic) participant contributions through
compensation deferrals not to exceed the greater of 15% of compensation or
the maximum permitted by the Internal Revenue Code.
Participants may also elect to make after-tax (voluntary) contributions
to the Plan not exceeding 9% of compensation.
Participants may also contribute amounts representing distributions from
other qualified defined benefit or contribution plans.
Plan Sponsor contributions:
The Plan Sponsor matches, on a
discretionary basis, participant basic contributions. Matching contributions
have, in the past, been as much as 4% of credited compensation, as defined in
the Plan agreement.
The Plan Sponsor may also make additional discretionary
profit sharing contributions for the benefit of plan participants employed on
the last day of the Plan's fiscal year. Profit sharing contributions, if any,
are allocated to plan participants based on the ratio of participant
compensation to the total compensation of all eligible plan participants.
C. Participant Accounts
Each participant's account is credited with the
participant's contribution and allocations of (a) the Plan Sponsor's
contribution and, (b) Plan earnings, and charged with an allocation of
administrative expenses. Allocations are based on participant earnings or
account balances, as defined. The benefit to which a participant is entitled is
the benefit that can be provided from the participant's vested account.
<PAGE>
D. Vesting
Participants are immediately vested in their contributions plus actual
earnings thereon. As of July 1, 1998, a participant is fully vested in the Plan
Sponsor matching and discretionary contribution portion of their accounts plus
actual earnings thereon upon the earliest of completing five years of credited
service, previously seven years; the event of death, disability or retirement;
MTI terminates or freezes the Plan.
E. Investment Options
Participants may
direct the investment of contributions in multiples of 5% in any of the
investment options identified below, as selected by the Plan's trustees.
Changes to the investment fund designations may be made daily through the
Plan's third party record-keeper. The fund's investment strategies are subject
to change and future performance cannot be guaranteed.
Number of Participants
Investment Options Available as of July 1998 as of December 31, 1998
____________________________________________ _______________________
MTI Stock Fund 2
MFS/F&C International Growth Fund 7
MFS Global Growth Fund 64
MFS Emerging Growth Fund 88
MFS Total Return Fund 75
MFS Bond Fund 64
MFS Fixed Fund 171
Massachusetts Investors Growth Stock Fund 97
Massachusetts Investors Trust Fund 49
MTI Stock Fund
The fund is a unitized fund which invests in Mechanical Technology
Incorporated common stock and maintains a portion of the fund in money market
investments.
MFS/F&C International Growth Fund
The fund's foreign growth
securities may include securities of more-established companies which represent
opportunities for long-term growth. The fund may invest up to 100% of its total
assets in foreign securities and up to 25% in emerging market securities. The
fund may also invest in derivative securities.
MFS Global Growth Fund
The fund
invests primarily in securities in three market sectors: U.S. emerging growth,
foreign growth, and emerging markets. The fund may invest up to 100% of its
total assets in foreign and emerging market securities and generally will
invest between 25% and 75% in such securities. The fund may also invest up to
35% in high-yield securities and may invest in derivative securities.
MFS Emerging Growth Fund
The fund invests primarily in emerging growth companies
that display the potential to become major enterprises. The fund may invest up
to 25% of its total assets in foreign and emerging market securities. The fund
may also invest in derivative securities.
MFS Total Return Fund
At least 25% of
the fund's assets will be invested in fixed-income securities, and at least 40%
and no more than 75% of assets will be invested in stocks. The fund may also
invest in derivative securities.
<PAGE>
MFS Bond Fund
The fund invests at least 80% of
its assets in investment-grade bonds, including U.S. government securities and
high-grade corporate debt. The fund may invest up to 20% of its assets in
high-yield securities. The fund may also invest in derivative securities.
MFS Fixed Fund
The fund strives to maintain a stable $1 unit value by investing
primarily in stable-value investment contracts issued by major insurance
companies, and major banks. Not more than 20% of the fund shall be positioned
in any individual issuer.
Massachusetts Investors Growth Stock Fund
The fund
emphasis is placed on companies that the fund manager believes has strong
management, a successful track record, a history of consistent long-term
earnings growth and the potential for market leadership. The fund may invest up
to 50% of its total assets in foreign and emerging market securities. The fund
may also invest in derivative securities.
Massachusetts Investors Trust Fund
The fund invests primarily in stocks representing well-known companies across a
wide range of industries. The fund may invest up to 35% of its total assets in
foreign and emerging market securities. The fund may also invest in derivative
securities.
Investment Options Available Through June 1998
______________________________________________
Fidelity Asset Manager
The fund was diversified among domestic and foreign stocks, bonds, and
short-term and money market instruments, seeking a high total return with
reduced risk over the long term.
Fidelity Magellan
The fund invested in
securities convertible into common stock of domestic, foreign, and
multinational issuers of all sizes to increase the value of the fund's shares
over the long term.
MassMutual Government Reserve
The fund invested primarily
in cash, United States Treasury or Agency securities, and other investments
that are issued or guaranteed by the United States Government, its agencies and
instrumentalities.
MassMutual Destiny Conservative
The fund invested primarily
in common stocks, publicly traded bonds and short-term interest bearing
investments with a primary focus on income and capital preservation.
MassMutual Destiny Moderate
The fund invested primarily in common stocks, publicly traded
bonds and short-term interest bearing investments with a primary focus on
achieving growth through a balance of income and capital appreciation.
MassMutual Destiny Aggressive
The fund invested primarily in common stocks,
publicly traded bonds and short-term interest bearing investments with a
primary focus on capital appreciation.
MassMutual Destiny Equity
The fund
invested primarily in foreign and domestic common stocks, including small
capitalization common stocks.
<PAGE>
MassMutual International Equity
The fund invested
primarily in common stocks of companies domiciled in foreign countries with no
more than 25% of its assets invested in common stock of the United States and
Canada.
Guaranteed Investment Contracts
Investments in a Government Separate
Account that had its underlying investments in a portfolio of Government
Securities. It was a separate pool of investments independent from the general
assets of Mass Mutual.
Investments in guaranteed investment contracts issued by
insurance companies.
Fidelity Equity Income II
The fund had the flexibility to
invest the balance in all types of domestic and foreign securities, including
bonds. The fund also considered the potential for capital appreciation.
Fidelity Blue Chip
The fund invested primarily in a diversified portfolio of
common stocks of well-known and established companies.
Fidelity Contrafund
The fund invested mainly in equity securities of companies where value is not
fully recognized by the public. The issuing company may be unpopular but
have promising improvements on the horizon such as new products or a change
in management. The fund could also invest in any type of security that
might produce capital appreciation.
F. Participant notes receivable
Plan
participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50 percent of their account balance.
Loan transactions are treated as a transfer to (from) the investment funds from
(to) the participant notes fund. Loan terms range from 1 to 5 years. The loans
are collateralized by the balance in the participant's account and bear
interest at the Prime interest rate plus 2 percent on the date the loan is
made. Interest rates range from 8 to 10.5 percent. Principal and interest is
paid ratably through monthly payroll deductions.
G. Payment of benefits
Normal retirement age is 65. The Plan permits early retirement at age 55 with
five years of service. Upon retirement, disability or death, a participant or
beneficiary may elect to receive his or her vested individual account balance
of more than $5,000 in the form of an annuity, a lump-sum payment or monthly
installments over the recipient's life expectancy, not exceeding ten years. A
participant or beneficiary with a vested individual account balance under
$5,000 will receive a lump-sum payment.
A terminated participant is entitled to
a lump-sum payment of the vested interest in his or her account. A terminated
participant with five or less years of service forfeits the right to receive a
portion of the accumulated benefit attributable to Plan Sponsor contributions.
H. Forfeited Accounts
At December 31, 1998, forfeited non-vested accounts
totaled $ 72,096. These amounts will be used to first pay Plan administrative
expenses, then to reduce future employer contributions.
I. Plan Administrative Costs
The Company pays both the annual trustee fees and the
annual audit fees of the Plan.
<PAGE>
2. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation
The financial statements of the Plan are prepared on the
accrual basis of accounting.
B. Use of Estimates
The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
of assets, liabilities and changes therein, and disclosure of contingent assets
and liabilities. Actual results could differ from those estimates.
C. Risks and Uncertainties
The Plan provides for various investment options in any
combination of stocks, fixed income securities, mutual funds and other
investment securities. Investment securities are exposed to various risks, such
as interest rate, market and credit. Due to the level of risk associated with
certain investment securities and the level of uncertainty related to changes
in the value of investment securities, it is at least reasonably possible that
changes in risks in the near term would materially affect participant's account
balances and the amounts reported in the statement of net assets available for
plan benefits and the statement of changes in net assets available for plan
benefits.
D. Investment Valuation and Income Recognition
The Plan's investments
are stated at fair value except for its investment contracts which are valued
at contract value (Note 4). Shares of registered investment companies and
pooled separate accounts are valued at quoted market prices which represent the
net asset value of shares or units held by the Plan at year-end. Participant
notes receivable are valued at cost, which approximates fair value.
Purchases
and sales of securities are recorded on a trade-date basis. Gains or losses on
sales of securities are based on average cost. Interest income is recorded on
the accrual basis.
The Plan presents in the Statements of Changes in Net Assets
Available for Benefits the net appreciation (depreciation) in the fair value of
its investments which consists of the realized gains or losses (computed on
average cost) and the unrealized appreciation (depreciation) on those
investments.
E. Payments of Benefits
Benefits are recorded when paid.
F. Reclassification
Certain 1997 amounts have been reclassified to conform with
the 1998 presentation.
<PAGE>
3. INVESTMENTS
Except for its investment contracts with insurance companies (Note 4), the
Plan's investments are held by an investment company. The following table
presents the fair values of investments, which includes investments that
represent 5 percent or more of total plan assets.
DECEMBER 31, 1998
Cost/
Number Contract Fair
of Shares Value Value
_________ ________ _____
Investments at Fair Value as
Determined
by Quoted Market Prices
MTI Stock Fund 29 $ 314 $ 327
========== ==========
Registered investment companies:
MFS/F&C International Growth Fund 2,564 $ 42,580 $ 39,873
MFS Global Growth Fund 13,910 282,910 269,994
MFS Emerging Growth Fund 87,517 2,974,778 3,903,270
MFS Total Return Fund 46,825 763,688 700,505
MFS Bond Fund 21,291 288,977 282,965
MFS Fixed Fund 7,401,375 7,401,375 7,401,375
Massachusetts Investors Growth
Stock Fund 154,862 2,029,414 2,463,857
Massachusetts Investors
Trust Fund 43,387 849,332 878,581
__________ __________
$14,633,054 $15,940,420
========== ==========
Investments at Estimated Fair Value
Participant notes receivable $ 92,352 $ 92,352
========== ==========
Total $14,725,720 $16,033,099
========== ==========
Investment income of the Plan is as follows: Year Ended
Net appreciation in fair value of investments: December 31,
Investments at fair value as determined 1998
by quoted market prices:
MTI stock fund $ 13
Registered investment companies 2,818,366
Pooled separate accounts 142,515
___________
2,960,894
Investments at contract value:
Guaranteed investment contracts (990,903)
___________
$ 1,969,991
===========
<PAGE>
DECEMBER 31, 1997
Cost/
Number Contract
of Units Value Fair Value
________ ________ __________
Investments at Fair Value as Determined
by Quoted Market Prices
Registered investment companies:
Fidelity Asset Manager 126,122 * $ 2,063,806
Fidelity Magellan 151,296 * 2,911,801
Fidelity Contrafund 5,016 * 918,936
Fidelity Equity Income II 1,629 * 281,367
Fidelity Blue Chip 1,605 * 276,577
_____________
$ 6,452,487
Pooled separate accounts: =============
Government Reserves 1,809 * $ 232,618
Destiny Conservative 500 * 74,147
Destiny Moderate 1,286 * 201,431
Destiny Aggressive 1,964 * 320,718
Destiny Equity 2,969 * 539,477
International Equity 235 * 52,794
_____________
$ 1,421,185
=============
Investments at Estimated Fair Value
Participant notes receivable $ 173,262 $ 173,262
========= =============
Investments at Contract Value
Various guaranteed investment contracts
with insurance companies with interest
rates ranging from 6.84% to 7.30% and
maturing at various dates through
January 3, 2000. * $ 9,435,386
=============
Total $ 17,482,320
=============
*Information is not available.
Investment income of the Plan is as follows: Year Ended
Net appreciation in fair value of investments: December 31,
Investments at fair value as determined 1997
by quoted market prices: ____________
Registered investment companies $ 1,565,279
Pooled separate accounts 184,202
_____________
$ 1,749,481
=============
<PAGE>
4. INVESTMENT CONTRACTS WITH INSURANCE COMPANIES
The Plan entered into investment contracts with insurance companies
(the Companies). The Companies maintained the contributions in a pooled
account. The account was credited with actual earnings on the underlying
investments (principally bank certificates of deposit) and charged for Plan
withdrawals and administration expenses charged by the Companies. The
contracts are included in the financial statements at contract value,
which approximates fair value, as reported to the Plan by the Companies.
Contract value represents contributions made under the contract, plus
earnings, less Plan withdrawals and administrative expenses.
These contracts provided a liquidity guarantee by financially responsible
third parties of principal and previously accrued interest for liquidations,
transfers, loans, or hardship withdrawals initiated by plan participants
exercising their rights to withdraw, borrow or transfer funds under the terms
of the on-going Plan. The average yield on their contracts was 4.03% and
7.05% for the years ended December 31, 1998 and December 31, 1997
respectively.
5. INFORMATION CERTIFIED BY INVESTMENT CUSTODIANS
The investments at fair and contract value, interest income, net appreciation
in fair value of investments, benefits paid to participants and employee
forfeitures presented in the Statements of Net Assets Available for Benefits
and Statements of Changes in Net Assets Available for Benefits for the years
ended December 31, 1998 and 1997 have been certified by the Plan's investment
custodian.
6. PLAN TERMINATION
Although it has not expressed any intent to do so, the Plan Sponsor has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become fully vested in their accounts.
7. CONCENTRATION OF CREDIT RISK
Financial instruments which potentially subject the Plan to concentrations
of credit risk consist principally of investments in guaranteed income
deposits with insurance companies. To reduce credit risk, the Plan places
these investments with high credit quality financial institutions and limits
the amount of credit exposure to any one financial institution.
8. INCOME TAX STATUS
An application for Determination Letter will be filed in July 1999 with the
Internal Revenue Service (IRS) by the Plan Sponsor . The Plan trustees
believe that the Plan and related trust are designed in accordance with
applicable sections of the Internal Revenue Code. The Plan was amended and
restated in 1998, when the Plan changed record-keepers and trustees. The
Plan had a Determination Letter dated February 8, 1996 for the Plan in
effect through June 30, 1998.
9. TRANSFER
On June 27, 1997, Plug Power, L.L.C. ("Plug Power") was formed and employees
were transferred from the Plan Sponsor to Plug Power. Plug Power
established its own benefit plan and the accounts of employees transferred
were transferred to the Plug Power plan during the third quarter of 1997.
<PAGE>
10. PLAN AMENDMENT AND RESTATEMENT
Effective July 1, 1998, the Plan changed its record-keeper to MFS Retirement
Services, Inc. and its trustee to Reliance Trust Company. In connection
with this change, the plan was amended and restated. Significant Plan
changes include:
a. Vesting over a five year period.
b. Forfeitures are used first to pay the Plan's administrative
expenses and excess may be used to reduce matching contributions.
<PAGE>
<TABLE>
11. ALLOCATION OF NET ASSETS
Allocation of net assets available for plan benefits at December 31, 1998 is as follows:
MASS-
MFS/F&C ACHUSETTS MASS- PART-
INTER- MFS MFS MFS INVESTORS ACHUSETTS ICIPANT
MTI NATIONAL GLOBAL EMERGING TOTAL MFS MFS GROWTH INVESTORS NOTES
STOCK GROWTH GROWTH GROWTH RETURN BOND FIXED STOCK TRUST RECEIV-
FUND FUND FUND FUND FUND FUND FUND FUND FUND ABLE TOTAL
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and
cash
equivalents $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Investments
in MTI stock
fund, at
fair value 327 - - - - - - - - - 327
Investments
in registered
investment
companies, at
fair value - 39,873 269,994 3,903,270 700,505 282,965 7,401,375 2,463,857 878,581 - 15,940,420
Investments
in pooled
separate
accounts, at
fair value - - - - - - - - - - -
Guaranteed
investment
contracts, at
contract
value - - - - - - - - - - -
Participant
notes
receivable - - - - - - - - - 92,352 92,352
Contributions
receivable -
employer 10 22 377 769 680 476 1,509 994 354 - 5,191
Contributions
receivable -
participants 15 34 805 2,114 1,311 887 2,825 2,470 994 542 11,997
-------------------------------------------------------------------------------------------------------------------
Total assets 352 39,929 271,176 3,906,153 702,496 284,328 7,405,709 2,467,321 879,929 92,894 16,050,287
-------------------------------------------------------------------------------------------------------------------
NET ASSETS
AVAILABLE
FOR
BENEFITS $352 $ 39,929 $271,176 $3,906,153 $702,496 $284,328 $7,405,709 $2,467,321 $ 879,929 $92,894 $16,050,287
===================================================================================================================
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
Allocation of net assets available for plan benefits at December 31, 1997 is as follows:
-----------------------MASS MUTUAL-----------------------
FIDELITY GOVERN- DESTINY DESTINY DESTINY INTER-
ASSET FIDELITY MENT CONSER- MOD- AGGRESS- DESTINY NATIONAL
MANAGER MAGELLAN RESERVES VATIVE ERATE IVE EQUITY EQUITY
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and
cash
equivalents $ - $ - $ - $ - $ - $ - $ - $ -
Investments
in MTI stock
fund, at fair
value - - - - - - - - -
Investments
in registered
investment
companies, at
fair value 2,063,806 2,911,801 - - - - - -
Investments
in pooled
separate
accounts, at
fair value - - 232,618 74,147 201,431 320,718 539,477 52,794
Guaranteed
investment
contracts,
at contract
value - - - - - - - - -
Participant
notes
receivable - - - - - - - -
Contributions
receivable -
employer - - - - - - - -
Contributions
receivable -
participants - - - - - - - -
---------------------------------------------------------------------------------
Total assets 2,063,806 2,911,801 232,618 74,147 201,431 320,718 539,477 52,794
---------------------------------------------------------------------------------
NET ASSETS
AVAILABLE
FOR
BENEFITS $2,063,806 $2,911,801 $232,618 $74,147 $201,431 $320,718 $539,477 $ 52,794
=================================================================================
</TABLE>
<PAGE>
<TABLE>
PART-
ICIPANT
FIDELITY FIDELITY FIDELITY NOTES GUARANTEED
CONTRA- EQUITY BLUE RECEIV- INVESTMENT
FUND INCOME II CHIP OTHER ABLE CONTRACTS TOTAL
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and
cash
equivalents $ - $ - $ - $26,932 $ - $ - $ 26,932
Investments
in MTI stock
fund, at fair
value - - - - - - - -
Investments
in registered
investment
companies,
at fair value 918,936 281,367 276,577 - - - 6,452,487
Investments
in pooled
separate
accounts, at
fair value - - - - - - 1,421,185
Guaranteed
investment
contracts,
at contract
value - - - - - - 9,435,386 9,435,386
Participant
notes
receivable - - - - 173,262 - 173,262
Contributions
receivable -
employer - - - 2,688 - - 2,688
Contributions
receivable -
participants - - - 6,284 - - 6,284
-------------------------------------------------------------------------
Total assets 918,936 281,367 276,577 35,904 173,262 9,435,386 17,518,224
-------------------------------------------------------------------------
NET ASSETS
AVAILABLE
FOR
BENEFITS $918,936 $ 281,367 $276,577 $35,904 $173,262 $9,435,386 $17,518,224
=========================================================================
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
Changes in net assets available for plan benefits for the Year Ended December 31, 1998 is as follows:
MASS-
MFS/F&C ACHUSETTS
INTER- MFS MFS MFS INVESTORS
MTI NATIONAL GLOBAL EMERGING TOTAL MFS MFS GROWTH
STOCK GROWTH GROWTH GROWTH RETURN BOND FIXED STOCK
FUND FUND FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ - $ 835 $ 20,472 $ 35,115 $ 94,465 $ 8,032 $ 168,221 $ 196,512
Net
appreciation
(depreciation)
in fair
value of
investments 13 (2,657) (12,603) 652,819 (62,365) (5,684) 775,826 299,822
---------------------------------------------------------------------------------------
Net investment
income 13 (1,822) 7,869 687,934 32,100 2,348 944,047 496,334
---------------------------------------------------------------------------------------
Less
investment
expenses - 2 2 12 5 3 56 18
---------------------------------------------------------------------------------------
13 (1,824) 7,867 687,922 32,095 2,345 943,991 496,316
Contributions:
Employer 109 752 4,792 14,955 7,596 3,962 32,260 15,436
Participant 205 901 11,254 35,836 16,962 9,482 69,366 38,259
Rollovers - - - - - - - -
---------------------------------------------------------------------------------------
314 1,653 16,046 50,791 24,558 13,444 101,626 53,695
---------------------------------------------------------------------------------------
Total
additions 327 (171) 23,913 738,713 56,653 15,789 1,045,617 550,011
---------------------------------------------------------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants - 262 - 143,187 333 - 189,421 19,892
Employee
forfeitures - 37 - 3,145 47 - - 3,267
---------------------------------------------------------------------------------------
Total
deductions - 299 - 146,332 380 - 189,421 23,159
---------------------------------------------------------------------------------------
Net increase/
(decrease)
prior to
interfund
transfers 327 (470) 23,913 592,381 56,273 15,789 856,196 526,852
---------------------------------------------------------------------------------------
Transfers - 40,087 245,593 3,324,261 643,069 258,678 6,640,854 1,933,611
Loan activity
transfers - 256 488 1,283 2,142 346 12,429 4,223 2,360
Interfund
transfers - - - (14,655) (979) 8,152 (108,104) (829)
---------------------------------------------------------------------------------------
Net increase 327 39,873 269,994 3,903,270 700,505 282,965 7,401,375 2,463,857
---------------------------------------------------------------------------------------
Net assets
available for
benefits:
Beginning of year - - - - - - - -
---------------------------------------------------------------------------------------
End of year $ 327 $ 39,873 $269,994 $3,903,270 $700,505 $282,965 $7,401,375 $2,463,857
=======================================================================================
</TABLE>
<PAGE>
<TABLE>
MASS-
ACHU- PART-
SETTS ICIPANT
INVESTORS NOTES
TRUST RECEIV- SUB-
FUND OTHER ABLE TOTAL
-----------------------------------------
<S> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ 37,653 $ - $ 4,749 $ 566,054
Net
appreciation
(depreciation)
in fair
value of
investments 30,117 - - 1,675,288
-----------------------------------------
67,770 - 4,749 2,241,342
Less
investment
expenses 4 - - 102
-----------------------------------------
Net investment
income 67,766 - 4,749 2,241,240
-----------------------------------------
Contributions:
Employer 7,667 5,191 - 92,720
Participant 17,768 11,997 - 212,030
Rollovers - - - -
-----------------------------------------
25,435 17,188 - 304,750
-----------------------------------------
Total
additions 93,201 17,188 4,749 2,545,990
-----------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants 12,470 - - 365,565
Employee
forfeitures 2,129 - - 8,625
-----------------------------------------
Total
deductions 14,599 - - 374,190
-----------------------------------------
Net increase/
(decrease)
prior to
interfund
transfers 78,602 17,188 4,749 2,171,800
-----------------------------------------
Transfers 681,204 - 111,130 13,878,487
Loan activity
transfers 2,360 - (23,527) -
Interfund
transfers 116,415 - - -
-----------------------------------------
Net increase 878,581 17,188 92,352 16,050,287
-----------------------------------------
Net assets
available for
benefits:
Beginning of year - - - -
-----------------------------------------
End of year $ 878,581 $17,188 $92,352 $16,050,287
=========================================
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
Changes in net assets available for plan benefits for the Year Ended December 31, 1998 is as follows:
---------------------------MASSMUTUAL----------------------
FIDELITY GOVERN- DESTINY DESTINY DESTINY
ASSET FIDELITY MENT CONSER- MOD- AGGRESS- DESTINY
MANAGER MAGELLAN RESERVES VATIVE ERATE IVE EQUITY
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ 34,269 $ 7,765 $ 5,726 $ - $ - $ - $ -
Net
appreciation
(depreciation)
in fair
value of
investments 183,049 603,854 - 7,965 16,644 34,475 70,769
------------------------------------------------------------------------------------------
217,318 611,619 5,726 7,965 16,644 34,475 70,769
Less
investment
expenses 2,734 3,754 442 272 463 599 738
------------------------------------------------------------------------------------------
Net investment
income 214,584 607,865 5,284 7,693 16,181 33,876 70,031
------------------------------------------------------------------------------------------
Contributions:
Employer 11,650 10,485 3,510 2,648 8,832 9,512 5,025
Participant 28,191 23,604 7,295 4,759 14,086 22,909 16,838
Rollovers - - - - - - -
------------------------------------------------------------------------------------------
39,841 34,089 10,805 7,407 22,918 32,421 21,863
------------------------------------------------------------------------------------------
Total
additions 254,425 641,954 16,089 15,100 39,099 66,297 91,894
------------------------------------------------------------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants 418,296 658,505 55,482 24,760 75,061 41,290 163,200
Employee
forfeitures 359 - 1,748 333 - 353 -
------------------------------------------------------------------------------------------
Total
deductions 418,655 658,505 57,230 25,093 75,061 41,643 163,200
------------------------------------------------------------------------------------------
Net (decrease)/
increase
prior to
interfund
transfers (164,230) (16,551) (41,141) (9,993) (35,962) 24,654 (71,306)
------------------------------------------------------------------------------------------
Transfers (1,830,046) (2,318,375) (178,696) (393,035) (108,593) (328,232) (414,256)
Loan activity
transfers - - - - - - -
Interfund
transfers (69,530) (576,875) (12,781) 328,881 (56,876) (17,140) (53,915)
------------------------------------------------------------------------------------------
Net
decrease (2,063,806) (2,911,801) (232,618) (74,147) (201,431) (320,718) (539,477)
------------------------------------------------------------------------------------------
Net assets
available for
benefits:
Beginning of year 2,063,806 2,911,801 232,618 74,147 201,431 320,718 539,477
------------------------------------------------------------------------------------------
End of year $ - $ - $ - $ - $ - $ - $ -
==========================================================================================
</TABLE>
<PAGE>
<TABLE>
MASS- PART-
MUTUAL ICIPANT
INTER- FIDELITY FIDELITY FIDELITY NOTES GUARANTEED
NATIONAL CONTRA- EQUITY BLUE RECEIV- INVESTMENT SUB
EQUITY FUND INCOME II CHIP OTHER ABLE CONTRACTS TOTAL TOTAL
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ - $ - $ - $ - $ - $ 5,817 $ 190,122 $ 243,699 $ 809,753
Net
appreciation
(depreciation)
in fair
value of
investments 12,662 217,939 44,490 93,759 - - (990,903) 294,703 1,969,991
----------------------------------------------------------------------------------------------------------------
12,662 217,939 44,490 93,759 - 5,817 (800,781) 538,402 2,779,744
Less
investment
expenses 83 1,120 426 524 - - 11,657 22,812 22,914
----------------------------------------------------------------------------------------------------------------
Net investment
income 12,579 216,819 44,064 93,235 - 5,817 (812,438) 515,590 2,756,830
----------------------------------------------------------------------------------------------------------------
Contributions:
Employer 906 6,353 2,731 2,611 (2,688) - 47,701 109,276 201,996
Participant 3,158 22,327 12,304 4,892 (33,216) (64,759) 117,532 179,920 391,950
Rollovers - - - - - - - - -
----------------------------------------------------------------------------------------------------------------
4,064 28,680 15,035 7,503 (35,904) (64,759) 165,233 289,196 593,946
----------------------------------------------------------------------------------------------------------------
Total
additions 16,643 245,499 59,099 100,738 (35,904) (58,942) (647,205) 804,786 3,350,776
----------------------------------------------------------------------------------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants 15,019 142,811 115,213 11,648 - 3,190 2,714,705 4,439,180 4,804,745
Employee
forfeitures - 379 779 768 - - 624 5,343 13,968
----------------------------------------------------------------------------------------------------------------
Total
deductions 15,019 143,190 115,992 12,416 - 3,190 2,715,329 4,444,523 4,818,713
----------------------------------------------------------------------------------------------------------------
Net (decrease)
increase
prior to
interfund
transfers 1,624 102,309 (56,893) 88,322 (35,904) (62,132) (3,362,534) (3,639,737) (1,467,937)
----------------------------------------------------------------------------------------------------------------
Transfers (40,087) (1,005,886) (131,268) (681,204) - (111,130) (6,337,679) (13,878,487) -
Loan activity
transfers - - - - - - - - -
Interfund
transfers (14,331) (15,359) (93,206) 316,305 - - 264,827 - -
----------------------------------------------------------------------------------------------------------------
Net
(decrease) (52,794) (918,936) (281,367) (276,577) (35,904) (173,262) (9,435,386) (17,518,224) (1,467,937)
----------------------------------------------------------------------------------------------------------------
Net assets
available for
benefits:
Beginning of year 52,794 918,936 281,367 276,577 35,904 173,262 9,435,386 17,518,224 17,518,224
----------------------------------------------------------------------------------------------------------------
End of year $ - $ - $ - $ - $ - $ - $ - $ - $ 16,050,287
================================================================================================================
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
Changes in net assets available for plan benefits for the Year Ended December 31, 1997 is as follows:
-------------------------MASS MUTUAL-------------------------------
FIDELITY GOVERN- DESTINY DESTINY DESTINY
ASSET FIDELITY MENT CONSER- MOD- AGGRESS- DESTINY
MANAGER MAGELLAN RESERVES VATIVE ERATE IVE EQUITY
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ 74,099 $ 54,330 $ 11,887 $ - $ - $ - $ -
Net
appreciation
in fair
value of
investments 358,463 808,461 - 8,502 32,027 45,008 90,939
---------------------------------------------------------------------------------------------------
432,562 862,791 11,887 8,502 32,027 45,008 90,939
Less
investment
expenses 6,130 9,299 1,076 295 937 1,147 1,316
---------------------------------------------------------------------------------------------------
Net investment
income 426,432 853,492 10,811 8,207 31,090 43,861 89,623
---------------------------------------------------------------------------------------------------
Contributions:
Employer 28,847 36,477 6,184 3,679 18,872 24,815 19,345
Participant 83,672 85,375 14,635 9,646 39,015 57,333 46,599
Rollovers 2,899 2,898 - - - - -
---------------------------------------------------------------------------------------------------
115,418 124,750 20,819 13,325 57,887 82,148 65,944
---------------------------------------------------------------------------------------------------
Total
additions 541,850 978,242 31,630 21,532 88,977 126,009 155,567
---------------------------------------------------------------------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants 566,923 1,028,587 32,185 135 6,433 25,631 6,439
Employee
forfeitures 2,791 8,302 1,231 - 875 1,111 1,456
---------------------------------------------------------------------------------------------------
Total
deductions 569,714 1,036,889 33,416 135 7,308 26,742 7,895
---------------------------------------------------------------------------------------------------
Net (decrease)
increase
prior to
interfund
transfers (27,864) (58,647) (1,786) 21,397 81,669 99,267 147,672
---------------------------------------------------------------------------------------------------
Transfers (210,736) (850,939) (3,027) (929) (45,876) (28,065) (43,315)
Interfund
transfers (68,063) (214,773) - - (2,547) 31,109 170,452
---------------------------------------------------------------------------------------------------
Net (decrease)
increase (306,663) (1,124,359) (4,813) 20,468 33,246 102,311 274,809
---------------------------------------------------------------------------------------------------
Net assets
available for
benefits:
Beginning of year 2,370,469 4,036,160 237,431 53,679 168,185 218,407 264,668
---------------------------------------------------------------------------------------------------
End of year $ 2,063,806 $ 2,911,801 $ 232,618 $ 74,147 $ 201,431 $ 320,718 $ 539,477
===================================================================================================
</TABLE>
<PAGE>
<TABLE>
MASS- PART-
MUTUAL ICIPANT
INTER- FIDELITY FIDELITY FIDELITY NOTES GUARANTEED
NATIONAL CONTRA- EQUITY BLUE RECEIV- INVESTMENT
EQUITY FUND INCOME II CHIP OTHER ABLE CONTRACTS TOTAL
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed
to:
Investment
Income:
Interest $ - $ - $ - $ - $ - $ 15,458 $ 742,759 $ 898,533
Net
appreciation
in fair
value of
investments 7,726 208,400 90,526 99,429 - - - 1,749,481
-----------------------------------------------------------------------------------------------------
7,726 208,400 90,526 99,429 - 15,458 742,759 2,648,014
Less
investment
expenses 95 2,367 1,122 1,182 - - 29,016 53,982
-----------------------------------------------------------------------------------------------------
Net investment
income 7,631 206,033 89,404 98,247 - 15,458 713,743 2,594,032
-----------------------------------------------------------------------------------------------------
Contributions:
Employer 1,326 21,550 8,923 4,862 2,688 - 111,305 288,873
Participant 2,111 55,930 25,134 11,997 33,216 (152,023) 320,099 632,739
Rollovers - - - - - - - 5,797
-----------------------------------------------------------------------------------------------------
3,437 77,480 34,057 16,859 35,904 (152,023) 431,404 927,409
-----------------------------------------------------------------------------------------------------
Total
additions 11,068 283,513 123,461 115,106 35,904 (136,565) 1,145,147 3,521,441
-----------------------------------------------------------------------------------------------------
Deductions
from net
assets
attributed to:
Benefits paid
to participants - 119,634 227,698 228,755 - (14,011) 2,398,143 4,626,552
Employee
forfeitures - 62 - 62 - - 1,330 17,220
-----------------------------------------------------------------------------------------------------
Total
deductions - 119,696 227,698 228,817 - (14,011) 2,399,473 4,643,772
-----------------------------------------------------------------------------------------------------
Net (decrease)
increase
prior to
interfund
transfers 11,068 163,817 (104,237) (113,711) 35,904 (122,554) (1,254,326) (1,122,331)
-----------------------------------------------------------------------------------------------------
Transfers (65,755) (263,609) (40,904) (152,736) - (35,809) (713,107) (2,454,807)
Interfund
transfers 107,481 70,689 24,007 152,776 - - (271,131) -
-----------------------------------------------------------------------------------------------------
Net (decrease)
increase 52,794 (29,103) (121,134) (113,671) 35,904 (158,363) (2,238,564) (3,577,138)
-----------------------------------------------------------------------------------------------------
Net assets
available for
benefits:
Beginning of year - 948,039 402,501 390,248 - 331,625 11,673,950 21,095,362
-----------------------------------------------------------------------------------------------------
End of year $ 52,794 $918,936 $ 281,367 $ 276,577 $ 35,904 $ 173,262 $ 9,435,386 $ 17,518,224
=====================================================================================================
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
Line 27a - Schedule of Assets Held for Investment Purposes
(a) (b)Identity of (c)Description of (d)Cost (e)Current
issue, investment Value
borrower, including
lessor, maturity date,
or similar rate of interest,
party collateral,
par or maturity
value
Mechanical
Technology
Incorporated Common Stock $ 314 $ 327
MFS F&C International
Growth Fund 42,580 39,873
MFS Global Growth Fund 282,910 269,994
MFS Emerging Growth
Fund 2,974,778 3,903,270
MFS MA Investors
Growth Fund 2,029,414 2,463,857
MFS MA Investors
Trust Fund 849,332 878,581
MFS Total Return Fund 763,688 700,505
MFS Bond Fund 288,977 282,965
MFS Fixed Fund 7,401,375 7,401,375
Participant
Notes 8 - 10.5% - 92,352
__________ __________
Total investments $14,633,368 $16,033,099
========== ==========
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS AND RETIREMENT PLAN
Line 27d - Schedule of Reportable Transactions
Individual Transactions - For the Year Ended December 31, 1998
Net asset value as of December 31, 1997 = $17,518,224
<TABLE>
(a)Identity (b)Description of asset (c)Purchase (d)Selling (e)Lease (f)Expense (g)Cost of (h)Current value (i)Net gain
of party (include interest rate price price rental incurred asset of asset on or (loss)
involved and maturity in with transaction
case of a loan) transaction date
<C> <C> <C> <C> <C> <C> <C> <C> <C>
MFS Emerging Growth Fund 1,005,886 N/A N/A N/A 1,005,886 1,005,886 -
MFS Emerging Growth Fund 2,318,375 N/A N/A N/A 2,318,375 2,318,375 -
MFS Massachusetts Investors
Growth Stock Fund 1,830,047 N/A N/A N/A 1,830,047 1,830,047 -
MFS Fixed Fund 5,038,838 N/A N/A N/A 5,038,838 5,038,838 -
MFS Fixed Fund 1,665,138 N/A N/A N/A 1,665,138 1,665,138 -
</TABLE>
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS AND RETIREMENT PLAN
Line 27d - Schedule of Reportable Transactions
Series of Transactions - For the Year Ended December 31, 1998
Net Asset Value as of December 31, 1997 = $17,518,224
<TABLE>
(a)Identity (b)Description of asset (c)Purchase (d)Selling (e)Lease (f)Expense (g)Cost of (h)Current value (i)Net gain
of party (include interest rate price price rental incurred asset of asset on or (loss)
involved and maturity in with transaction
case of a loan) transaction date
<C> <C> <C> <C> <C> <C> <C> <C> <C>
MFS Emerging Growth Fund 3,324,261 N/A N/A N/A 3,324,261 3,324,261 -
MFS Massachusetts Investors
Growth Stock Fund 1,933,611 N/A N/A N/A 1,933,611 1,933,611 -
MFS Fixed Fund 6,703,975 N/A N/A N/A 6,703,975 6,703,975 -
MFS Fixed Fund 953,021 N/A N/A N/A 953,021 953,021 -
Mass Mutual Destiny Aggressive N/A 387,613 N/A 599 387,613 387,613 -
Mass Mutual Destiny Conservative N/A 89,520 N/A 272 89,520 89,520 -
Mass Mutual Destiny Equity N/A 632,109 N/A 739 632,109 632,109 -
Mass Mutual Destiny Moderate N/A 240,993 N/A 463 240,993 240,993 -
Mass Mutual International Equity N/A 69,520 N/A 83 69,520 69,520 -
Mass Mutual Government Reserve N/A 249,148 N/A 442 249,148 249,148 -
Mass Mutual Fidelity Blue Chip N/A 377,839 N/A 524 377,839 377,839 -
Mass Mutual Fidelity Contrafund N/A 1,165,555 N/A 1,120 1,165,555 1,165,555 -
Mass Mutual Fidelity Equity Income II N/A 340,892 N/A 426 340,892 340,892 -
Mass Mutual Fidelity Magellan N/A 4,135,875 N/A N/A 3,795,445 4,135,875 -
Mass Mutual Fidelity Asset Manager N/A 2,459,548 N/A N/A 2,300,978 2,459,548 -
New York Guaranteed Investment
Life Contract N/A 1,892,402 N/A N/A 1,730,380 1,892,402 -
</TABLE>
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 333-72841) of Mechanical Technology Incorporated
of our report dated June 14, 1999 relating to the financial statements of
Mechanical Technology Incorporated MTI Savings and Retirement Plan which
appears in this Form 11-K.
PricewaterhouseCoopers L.L.P.
Albany, New York
June 23, 1999
