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 (NO FEE REQUIRED)
For the fiscal year end December 31, 1999
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)
30 South Pearl Street
Albany, New York 12207
(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, 1999 and 1998 5
Statements of changes in net assets available
for benefits for the years ended
December 31, 1999 and 1998 6
Notes to financial statements 7-16
Supplemental schedule of assets held for
investment purposes at end of year 17
Exhibits
________
Consent of Independent Accountants 18
<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, 1999 and 1998, 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 27, 2000 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
(the "Plan") at December 31, 1999 and 1998 and, and the changes in net assets
available for benefits for the years then ended in conformity with
accounting principles generally accepted in the United States. 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
auditing standards generally accepted in the United States, 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 schedule of assets
held for investment purposes is presented for the purpose of additional
analysis and is not a required part of the basic financial statements but is
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. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
PricewaterhouseCoopers L.L.P.
Albany, New York
June 23, 2000
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS AND RETIREMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1999 and December 31, 1998
DECEMBER 31,
1999 1998
ASSETS ____ ____
Investments in MTI stock
fund, at fair value $ 98,979 $ 327
Investments in registered
investment companies, at
fair value 14,343,170 15,940,420
Participant notes receivable 22,165 92,352
_____________ ___________
Total investments 14,464,314 16,033,099
Contributions
receivable - employer 2,392 5,191
Contributions
receivable - participants 6,056 11,997
_____________ ___________
Total assets 14,472,762 16,050,287
_____________ ___________
NET ASSETS AVAILABLE FOR BENEFITS $ 14,472,762 $ 16,050,287
============= ===========
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, 1999 and December 31, 1998
DECEMBER 31,
1999 1998
____ ____
Additions to net assets attributed to:
Investment income:
Interest $ 766,345 $ 809,753
Net (depreciation) appreciation
in fair value of MTI stock fund (21,924) 13
Net appreciation in fair value of
registered investment companies 2,193,983 1,969,978
_____________ ___________
2,938,404 2,779,744
Less investment expenses - 22,914
_____________ ___________
Net investment income 2,938,404 2,756,830
_____________ ___________
Contributions:
Employer 143,230 201,996
Participant 345,008 391,950
Rollovers 41,261 -
_____________ ___________
529,499 593,946
_____________ ___________
Total additions 3,467,903 3,350,776
_____________ ___________
Deductions from net assets attributed to:
Benefits paid to participants 5,014,302 4,804,745
Employee forfeitures 31,126 13,968
_____________ ___________
Total deductions 5,045,428 4,818,713
_____________ ___________
Net decrease (1,577,525) (1,467,937)
_____________ ___________
Net assets available for benefits:
Beginning of year 16,050,287 17,518,224
_____________ ___________
End of year $ 14,472,762 $ 16,050,287
============= ===========
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. Such contributions are excluded from
the participant's taxable income for federal income tax purposes until received
as a withdrawal or distribution from the Plan. 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 may be 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>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
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, 1999
____________________________________________ _______________________
MTI Stock Fund 7
MFS/F&C International Growth Fund 8
MFS Global Growth Fund 48
MFS Emerging Growth Fund 69
MFS Total Return Fund 66
MFS Bond Fund 53
MFS Fixed Fund 129
Massachusetts Investors Growth Stock Fund 86
Massachusetts Investors Trust Fund 45
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
invests at least 65% of its total assets in foreign (including 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 companies, foreign growth companies, and emerging market
securities. The fund invests, under normal market conditions, at least 65%
of its total assets in common stocks and related equity securities. The
fund may also invest in derivative securities.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
MFS Emerging Growth Fund
The fund invests primarily in emerging growth companies that display the
potential to become major enterprises or are major enterprises whose rates of
earnings growth are expected to accelerate. The fund may invest, under
normal market conditions, at least 65% of its total assets in common stocks
or related securities. The fund may also invest in foreign securities
(including emerging market securities) and may have exposure to foreign
currencies. The fund may also invest in debt and derivative securities.
MFS Total Return Fund
The fund is a "balanced" fund and invests in a combination of equity and
fixed income securities. Under normal market conditions, the fund invests at
least 25% of its net assets in non-convertible fixed-income securities, and at
least 40% but no more than 75% of net assets in common stocks and related
securities. The fund may also invest in derivative securities.
MFS Bond Fund
The fund invests, under normal market conditions, at least 65% of its total
assets in fixed income securities including, corporate bonds (domestic and
foreign (including emerging market)), U.S. government securities and
mortgage-backed and asset-backed 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.
Massachusetts Investors Growth Stock Fund
The fund emphasis is placed on companies that the fund advisor believes offers
better than average prospects for long-term growth. The fund may invest in
foreign securities through which it may have exposure to foreign currencies.
The fund invests its assets in common stocks and securities convertible into
common stocks of companies. The fund may also invest in derivative securities.
Massachusetts Investors Trust Fund
The fund invests, under normal market conditions, at least 65% of its total
assets in common stocks and related securities. The fund generally focuses
on companies with larger capitalizations that its fund advisor believes have
sustainable growth prospects and attractive valuations based on current and
expected earnings or cash flow. The fund will also seek to provide income
equal to approximately 90% of the dividend yield on the Standard & Poor's
500 Index. The fund may invest in foreign securities through which it may
have exposure to foreign currencies. The fund may also invest in derivative
securities.
<PAGE>
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.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
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.
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.
<PAGE>
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.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
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, 1999, forfeited non-vested accounts totaling $103,222 were
available to the Plan Sponsor and were excluded from plan assets. These
amounts will be used to first pay Plan administrative expenses, then to
reduce future employer contributions. Plan administrative expenses paid from
the forfeiture account in 1999 totaled $11,644.
I. Plan Administrative Costs
The Company pays both the annual trustee fees and annual audit fees of the Plan.
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.
<PAGE>
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.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
D. Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of registered
investment companies 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.
3. RECLASSIFICATION
Certain calendar year 1998 amounts have been reclassified to conform with the
calendar year 1999 presentation.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
4. INVESTMENTS
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, 1999
Number Net Asset Value
of Shares Per Share Cost Fair Value
_________ _______________ _________ ______________
Investments at Fair
Value as Determined
by Quoted Market
Prices
MTI Stock Fund 8,987 $11.01 $ 98,965 $ 98,979
========== ==============
Registered investment
companies:
MFS/F&C International
Growth Fund 894 $20.59 $ 21,119 $ 18,410
MFS Global Growth
Fund 12,866 29.76 396,244 382,889
MFS Emerging Growth
Fund 61,324 66.59 3,155,094 4,083,557
MFS Total Return
Fund 37,566 13.88 2,513,874 521,414
MFS Bond Fund 12,955 12.18 163,807 157,790
MFS Fixed Fund 5,461,800 1.00 5,461,800 5,461,800
Massachusetts Investors
Growth Stock Fund 145,024 20.33 2,513,874 2,948,330
Massachusetts Investors
Trust Fund 36,705 20.95 739,726 768,980
__________ ______________
$14,965,538 $ 14,343,170
========== ==============
Investments at Estimated
Fair Value
Participant notes
receivable $ 22,165 $ 22,165
========== ==============
Total $15,086,668 $ 14,464,314
========== ==============
<PAGE>
Year Ended
Net (depreciation) appreciation in fair December 31, 1999
value of investments: _________________
Investments at fair value as determined
by quoted market prices:
MTI stock fund $ (21,924)
Registered investment companies 2,193,983
________________
$ 2,172,059
================
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
DECEMBER 31, 1998
Number Net Asset Value Cost/Contract
of Shares Per Share Value Fair Value
_________ _______________ _____________ ____________
Investments at Fair
Value as Determined
by Quoted Market
Prices
MTI Stock Fund 29 $11.28 $ 314 $ 327
============ ===========
Registered investment
companies:
MFS/F&C International
Growth Fund 2,564 $15.55 $ 42,580 $ 39,873
MFS Global Growth
Fund 13,910 19.41 282,910 269,994
MFS Emerging Growth
Fund 87,517 44.60 2,974,778 3,903,270
MFS Total Return
Fund 46,825 14.96 763,688 700,505
MFS Bond Fund 21,291 13.29 288,977 282,965
MFS Fixed Fund 7,401,375 1.00 7,401,375 7,401,375
Massachusetts Investors
Growth Stock Fund 154,862 15.91 2,029,414 2,463,857
Massachusetts Investors
Trust Fund 43,387 20.25 849,332 878,581
____________ ___________
$ 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
============ ===========
<PAGE>
Year Ended
Net (depreciation) appreciation in fair
value of investments: December 31, 1998
Investments at fair value as determined _________________
by quoted market prices:
MTI stock fund $ 13
Pooled separate accounts 142,515
Registered investment companies 2,818,366
________________
2,960,894
Investments at contract value:
Guaranteed investment contracts (990,903)
________________
$ 1,969,991
================
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
5. 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.
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% for the
year ended December 31, 1998. These contracts were terminated during 1998.
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. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Plan Sponsor by
a letter dated February 7, 2000, 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.
8. 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 contribution.
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
9. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
December 31, 1999
_________________
Net assets available for benefits
per the financial statements $ 14,472,762
Amounts allocated to participant
notes receivable 33,509
________________
Net assets available for benefits
per Form 5500 $ 14,506,271
================
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500:
December 31, 1999
_________________
Benefits paid to participants
per the financial statements $ 5,014,302
Less: Amounts allocated to
participant notes receivable (33,509)
________________
Net assets available for benefits
per Form 5500 $ 4,980,793
================
<PAGE>
MECHANICAL TECHNOLOGY INCORPORATED
MTI SAVINGS & RETIREMENT PLAN
Line 4i - Schedule of Assets Held for Investment Purposes At End of Year
(a) (b)Identity of issue, (c)Description of investment (d)Cost * (e)Current
borrower, lessor, including maturity date, value
or similar party rate of interest, collateral,
par, or maturity value
Mechanical
Technology
Incorporated Common Stock $ 98,979
MFS F&C International Growth Fund 18,410
MFS Global Growth Fund 382,889
MFS Emerging Growth Fund 4,083,557
MFS MA Investors Growth Fund 2,948,330
MFS MA Investors Trust Fund 768,980
MFS Total Return Fund 521,414
MFS Bond Fund 157,790
MFS Fixed Fund 5,461,800
Participant Notes 8 - 10.5% 22,165
__________
Total investments $14,464,314
==========
* Column (d) has been omitted, as the Plan is 100% participant directed.
<PAGE>
