Harris & Harris Group Invests in NanoOpto Corporation

    Business Editors/Technology Editors

    NEW YORK--(BUSINESS WIRE)--March 22, 2005--Harris & Harris Group, Inc., announced today that it invested $842,503 as part of a $12 million Series C round of financing by privately held NanoOpto Corporation (www.nanoopto.com). First Analysis led the Series C financing and existing equity partners Morgenthaler Ventures; U.S. Trust's Excelsior Venture Partners III, L.L.C.; Draper Fisher Jurvetson (DFJ) Gotham Ventures and New England Ventures; and Harris & Harris Group all participated. Doug Jamison will represent Harris & Harris Group on the board of NanoOpto. Harris & Harris Group originally invested in NanoOpto in March 2002 and currently owns approximately 7.97 percent of the fully diluted equity in privately held NanoOpto.
    NanoOpto is applying proprietary nano-fabrication technology to the rapid design and high-volume manufacture of nano-optic devices for optical components and systems. The company's nanometer scale optical function design capability, combined with water-based manufacturing methods, delivers optical components that are directed at increasing performance and lowering cost.

    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 22 initial private equity investments have been in tiny-technology enabled companies.
    Harris & Harris Group is a business development company with 17,248,845 common shares outstanding.
    Detailed information about Harris & Harris Group and its holdings can be found on its website at www.TinyTechVC.com.

    This news 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 news 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.

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CONTACT: Harris & Harris Group, Inc. Douglas W. Jamison, 212-582-0900

KEYWORD: NEW YORK NEW JERSEY INDUSTRY KEYWORD: HARDWARE BANKING NETWORKING SOURCE: Harris & Harris Group, Inc.

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