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Effective March 16, 2006, the Board of Directors of Mechanical Technology Incorporated (the "Company") modified the termination provisions of certain stock options, previously granted under the 1999 Employee Stock Incentive Plan, to purchase shares of Company common stock with an exercise price of $2.80 per share held by board members Mr. Dale P. Church and Mr. Edward A. Dohring in the amounts of 48,333 and 8,333 options, respectively. The modification will permit them to exercise these options until December 31, 2006. The previous termination provision permitted the exercise for a period of 30 days after they terminated from service, which is expected to be the date of the 2006 Annual Shareholders Meeting.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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