TECHNOLOGY SOLUTIONS THAT SHAPE THE FUTURE


June 6, 2005

Dear Shareholder:

We're about to register shares underlying managements' options along with those
owned by certain company vendors and consultants who have helped us over the
years. This is a bullish development, born of our recent experience in an
attempted merger, which I will describe below. But without registering these
shares, our options carry little or no value and a limited amount of selling is
absolutely necessary in order for unsalaried members of management to continue
to serve MHTX. Our commitment to the firm is strong and unwavering, and we
continue to receive our compensation primarily in the form of equity options,
without receiving cash salaries (they are accrued). I can't say this is "news"
because we stated this before in the Letter to Shareholders dated January 1,
2005, however there is a tendency in the capital markets to draw negative
inferences, even from positive developments (e.g. Intel exceed its estimates,
but not enough...) and so we are coming down on the side of clarity and
transparency.

It has been said that experience is what you get when you don't get what you
want. Our recent attempt at a merger with a mid-size European technology firm
failed, not on the merits, but because their management could not devote the
necessary time and resources to complete the deal. In the process of dealing
with them, we learned some important things: we can possibly carve out our key
fuel-cell technology assets as a separate transaction where these assets could
be financed and commercialized for the benefit of you, our shareholder.
Moreover, we could create shareholder value by growing ourselves through the
merger and acquisition process. Unfortunately, the deal ended, but the idea did
not. Your management is pursuing this concept and we are presently involved in
conversations and meetings with alternative candidates, tracing similar paths.
We must reinvent ourselves to manage the assets and relationships we have. We
continue to evolve, and our registration of these underlying shares is part of
that evolution. Our primary form of compensation to management will continue to
be equity-based.
Thank you again for your continued support, loyalty and interest in our work.

Sincerely,

Marvin Maslow

Chief Executive Officer