Rand Capital Announces Continued Growth of Net Asset Value per Share to $3.90 at December 31, 2012, and $2.6 Million in New

Rand Capital Announces Continued Growth of Net Asset Value per Share to $3.90 
at December 31, 2012, and $2.6 Million in New Investments
During the 4th Quarter of 2012 
BUFFALO, NY -- (Marketwire) -- 03/01/13 --  Rand Capital Corporation
("Rand") (NASDAQ: RAND) 

--  Net Asset Value is $3.90 per share, $.32 or 9% over the prior year and
    a $.06 increase from the prior quarter
--  Notable investments during the quarter included $1.75 million in new
    investments in Knoa Software, Inc. and Mercantile Adjustment Bureau,
    LLC, and $900,000 in follow-on investments in three portfolio
--  $6 million of investments made during 2012
--  Increase in Gemcor and Ultra-Scan valuations
--  Total assets of $34.2 million

Rand Capital Corporation ("Rand") (NASDAQ: RAND) announced it has
invested $6 million in portfolio companies during 2012 and ended the
year with $29.8 million in portfolio investments, including $11.3
million in net unrealized appreciation.  
The December 31, 2012 net asset value of $25.8 million, or $3.90 per
share, represents a $.06 per share increase from September 30, 2012,
and a $.32 per share increase from December 31, 2011. 
Portfolio activity during the fourth quarter of 2012 included: 

--  Knoa Software, Inc. (New York, NY) (www.knoa.com) - Preferred equity
    investment of $750,000. Knoa software monitors, measures and manages
    how end-users are utilizing enterprise software applications,
    improving software performance and its users' experiences.
--  Mercantile Adjustment Bureau, LLC (Williamsville, NY)
    (www.mercantilesolutions.com) - Rand invested $1,000,000 in a
    Subordinated Note. Mercantile is a full service accounts receivable
    management and collections company.
--  BinOptics Corporation (Ithaca, NY) (www.binoptics.com) - Follow-on
    investment in additional shares of Series 2 stock. BinOptics designs
    and manufactures semiconductor Fabry-Perot (FP) lasers and Distributed
    Feedback (DFB) lasers.
--  First Wave Products Group, LLC (Batavia, NY)
    (www.firstwaveproducts.com) - Follow-on investment in a Term Note.
    First Wave develops medical devices including First Crush, a dual
    action device that crushes and grinds medical pills.
--  QuaDPharma, LLC (Clarence, NY) (www.quadpharmainc.com) - Follow-on
    investment in debt and equity. QuaDPharma is a small scale
    pre-commercial and commercial manufacturer for the pharmaceutical
--  Synacor, Inc. (Buffalo, NY) (www.synacor.com) - Rand holds 680,843
    shares, valued at $3.5 million ($5.20 per share) at December 31, 2012.
--  Gemcor II LLC (West Seneca, NY) (www.gemcor.com) and Ultra-Scan
    Corporation, (Amherst, NY) (www.ultra-scan.com) have seen an
    improvement in their business and Rand has adjusted its valuations to
    reflect the continued consumer acceptance for their goods and
--  Rand wrote off its Investment in Mid America Brick (Mexico, MO) during
    the quarter. The company has filed for bankruptcy reorganization in
--  Rand's treasury stock repurchase continued during the quarter with
    147,756 shares repurchased. Rand now holds 252,798 shares, leaving
    6,610,236 common shares outstanding.

For the calendar year 2012, Rand's $6 million of new and follow-on
investments represents the single largest investment period in Rand's
40+ year history. Rand now holds 20 companies in its portfolio,
across a diverse range of industries. 
Subsequent to December 31, 2012, Rand sold 227,200 shares of Synacor
(NASDAQ: SYNC) at an average price of $5.57 per share and currently
holds 453,643 shares with an average cost basis of $1.42 per share.
Synacor has traded between $6.51 and $2.72 per share in 2013. 
Allen F. Grum, President of Rand Capital, stated, "2012 was the
busiest year in the history of Rand Capital with $6 million invested
in 10 businesses. Additionally, we grew our net assets by 9% from
2011. Our portfolio companies continue to show robust operating
results which should bode well for continued growth in net asset
value and shareholder value." 
Safe Harbor Statement 
Information contained in this release, other than historical
information, should be considered forward-looking, and may be subject
to inherent uncertainties in predicting future results and
conditions. These statements reflect the Corporation's current
beliefs and are subject to a number of risk-factors, including:
general economic conditions which affect Rand and our portfolio
companies' operations; valuation and illiquid nature of the portfolio
investments; high degree of risk from investing in private companies;
the regulated environment in which we operate; the amount of debt
resulting from borrowing funds from the SBA; dependency upon key
management for investment decisions; and the competitive market for
investment opportunities and fluctuations in quarterly results.
Please see the Corporation's Form 10-Q, Item 1A, previously filed
with the Securities and Exchange Commission for a detailed discussion
of the risks and uncertainties associated with the Corporation's
business. Except as otherwise required by Federal securities laws,
Rand Capital Corporation and Rand Capital SBIC, Inc. undertakes no
obligation to update or revise forward-looking statements for new
events and uncertainties. 
 Rand Capital is a publicly held Business
Development Company (BDC), and its wholly owned subsidiary is
licensed by the Small Business Administration (SBA) as a Small
Business Investment Company (SBIC). Rand and its subsidiary provide
capital and managerial expertise to small and medium sized private
companies primarily located in the Northeast U.S. Rand is traded on
the NASDAQ under the symbol "RAND" and is headquartered in Buffalo,
NY. www.randcapital.com 
Investor Contact:
Allen F. Grum
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