EXHIBIT 99 - PRESS RELEASE
Published on March 6, 2009
PRESS RELEASE
HARRIS & HARRIS GROUP, INC. MARCH 6, 2009
111 WEST 57th STREET
NEW YORK, NY 10019 CONTACT: DOUGLAS W. JAMISON
NASDAQ/NMS SYMBOL: TINY TEL. NO. (212) 582-0900
IMPACT OF ECONOMIC CONDITIONS ON HARRIS & HARRIS GROUP
Given the current financial and economic environment, we have
received a number of questions over the last few days. These questions
have focused on how this environment is affecting Harris & Harris Group's
financial position, its status as a financial institution, and more
specifically its status as a business development company ("BDC").
At September 30, 2008, we had approximately $57.9 million in cash
and U.S. Treasury obligations. We have no debt outstanding. Accordingly,
we are not subject to credit agency downgrades, or risk of default or
failure from these types of loans that could cause us to fail asset
coverage tests or force a fire sale of assets. Our operating expenses
are expected to be approximately $6 million per year. Our Annual Letter
to Shareholders and our annual report on Form 10-K will be filed with
the Securities and Exchange Commission and posted on our website by
March 16, 2009. The Annual Letter to Shareholders and annual report
will continue to address how we have positioned Harris & Harris Group
in this economic downturn.
Regarding our status as a BDC, Harris & Harris Group is an internally
managed venture capital company that has elected to operate as a BDC under
the Investment Company Act of 1940. Unlike other BDCs that engage primarily
in middle market lending, we believe that we are the only BDC that invests
exclusively in venture capital-backed technology companies. Our investment
objective is long-term capital appreciation rather than current income.
We fund our day-to-day operations using interest earned and proceeds from
the sales of our investments in U.S. Treasury obligations ($57 million at
September 30, 2008). Accordingly, any decrease in the valuations of our
private portfolio companies does not currently adversely impact our daily
liquidity.
Harris & Harris Group is a publicly traded venture capital company
that invests in tiny technology, including nanotechnology, microsystems
and microelectromechanical systems (MEMS). A growing percentage of the
Company's portfolio consists of companies developing cleantech solutions.
Detailed information about Harris & Harris Group and its holdings
can be found on its website at 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 for the fiscal year ended December 31, 2007, the
Company's report on Form 10-Q for the quarter ended September 30, 2008
and subsequent filings, 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. The reference to the website
www.TinyTechVC.com has been provided as a convenience, and the information
contained on such website is not incorporated by reference into this press
release.