EXHIBIT PRESS RELEASE
Published on October 28, 2004
PRESS RELEASE FOR IMMEDIATE RELEASE
HARRIS & HARRIS GROUP, INC. OCTOBER 27, 2004
111 WEST 57TH STREET, SUITE 1100
NEW YORK, NEW YORK 10019 CONTACT: CHARLES E. HARRIS
NASDAQ/NMS SYMBOL: TINY TEL. NO. (212) 582-0900
HARRIS & HARRIS GROUP REPORTS BALANCE SHEET
FOR NINE MONTHS ENDED SEPTEMBER 30, 2004
Harris & Harris Group, Inc., announced today that its unaudited
gross assets and net assets were $80,757,636 and $76,505,012,
respectively. Net asset value per share was $4.44.
Gross assets, net assets and net asset value per share
increased during the quarter, reflecting both a successful follow-on
offering of the Company's shares and a successful initial public
offering (IPO) of one of the Company's portfolio companies,
NeuroMetrix, Inc. (Nasdaq: NURO). In the Company's oversubscribed
follow-on offering, underwritten by ThinkEquity Partners and Punk,
Ziegel & Company, the Company sold 3,450,000 of its shares at $11.25
per share, for net proceeds after underwriting discount and expenses
of $36,127,675, resulting in an increase in net asset value of $1.52
per share. In NeuroMetrix's oversubscribed IPO, underwritten by
Punk, Ziegel & Company and WR Hambrecht + Co., NeuroMetrix sold
3,450,000 of its shares at $8.00 per share.
At September 30, 2004, Harris & Harris Group valued its
1,137,570 shares of NeuroMetrix at $8.79, a 12.11 percent discount
to its closing price on NASDAQ on that day. This discount reflects
a lock-up of the Company's shares that expires on January 18, 2005.
Prior to NeuroMetrix's IPO, Harris & Harris Group had valued its
shares at $6.00 per share.
SUMMARY OF FINANCIAL RESULTS
September 30, 2004 June 30, 2004 September 30, 2003
(Unaudited) (Unaudited) (Unaudited)
Total Assets $80,757,636 $42,342,430 $34,392,032
Net Assets $76,505,012 $39,266,216 $24,225,912
Total Net Income
Tax Liability $1,306,047 $661,294 $585,749
Net Asset Value per Share $4.44 $2.85 $2.11
Shares Outstanding 17,248,845 13,798,845 11,498,845
Harris & Harris Group is a publicly traded venture capital
company that now makes initial investments exclusively in tiny
technology, including nanotechnology, microsystems and
microelectromechanical systems (MEMS). The Company's last 17
initial private equity investments have been in tiny-technology
enabled companies. The Company has 17,248,845 common shares
outstanding.
Detailed information about Harris & Harris Group, Inc. and its
holdings can be found on its website at http://www.TinyTechVC.com.
This press release may contain statements of a forward-looking
nature relating to future events. These forward-looking statements
are subject to the inherent uncertainties in predicting future
results and conditions. These statements reflect the Company's
current beliefs, and a number of important factors could cause
actual results to differ materially from those expressed in this
press release. Please see the Company's Annual Report on Form 10-K
filed with the Securities and Exchange Commission for a more
detailed discussion of the risks and uncertainties associated with
the Company's business, including but not limited to the risks and
uncertainties associated with venture capital investing and other
significant factors that could affect the Company's actual results.
Except as otherwise required by Federal securities laws, Harris &
Harris Group, Inc. undertakes no obligation to update or revise
these forward-looking statements to reflect new events or
uncertainties.