Rand Capital Announces Net Asset Value of $3.87 per Share, One New Investment, Three Follow-On Investments and Election of

Rand Capital Announces Net Asset Value of $3.87 per Share, One New Investment, 
Three Follow-On Investments and Election of Directors 
BUFFALO, NY -- (Marketwired) -- 05/02/13 --  Rand Capital Corporation
("Rand") (NASDAQ: RAND) 

--  Net Asset Value is $3.87 per share, $.26 or 7% growth over the prior
--  Notable investments during the quarter included $250,000 in a new
    investment in GiveGab, Inc. and $750,000 in follow-on investments in
    three portfolio companies
--  Total assets of $25.6 million
--  Election of Directors
--  Carolina Skiff, LLC recognized as #1 fiberglass boat builder in 2012

Rand Capital Corporation ("Rand") (NASDAQ: RAND) announced its March
31, 2013 net asset value of $25.6 million, or $3.87 per share,
representing a $.03 per share decrease from December 31, 2012, and a
$.26 per share increase from March 31, 2012. Rand's decreased net
asset value is primarily attributable to the lower public market
share price of Rand's Synacor holdings. 
Portfolio activity during the first quarter of 2013 included: 

--  GiveGab, Inc. (Ithaca, NY) (www.givegab.com) - Preferred equity
    investment of $250,000. GiveGab is a social network dedicated to
    helping volunteers and nonprofit organizations interact on a local
    level in their communities.
--  Chequed.com, Inc. (Saratoga Springs, NY) (www.chequed.com) - $500,000
    follow-on investment in additional shares of Series A Preferred stock.
    Chequed.com is a predictive employee selection and development
    software company.
--  Mezmeriz, Inc. (Ithaca, NY) (www.mezmeriz.com) - $100,000 follow-on
    investment in the form of a Convertible Promissory Note. Mezmeriz is a
    micro-electronic mechanical systems (MEMS) developer enabling
    efficient, wide-angle, Pico projectors to be embedded in mobile
--  Mid America Brick & Structural Clay Products, LLC (Mexico, MO)
    (www.midamericabrick.com) - $150,000 follow-on investment in the form
    of a Debtor in Possession Promissory Note following its bankruptcy
    which resulted in a $1 million realized loss over the quarter. Mid
    America Brick manufactures face brick for residential and commercial
--  Synacor, Inc. (Buffalo, NY) (www.synacor.com) - R
and holds 453,643
    shares, valued at $1.3 million ($2.95 per share) at March 31, 2013.
    Rand also sold 227,000 shares during the quarter generating a $1.1
    million realized gain.

Allen F. Grum, President of Rand Capital, stated, "Strong portfolio
results in the form of dividends and interest income were offset by
continued deteriorations in the price of Synacor shares. While
disappointing, we continue to hold 453,643 shares of Synacor with an
average cost of $1.42 per share and are evaluating our investment
strategy with this publicly held stock." 
Election of Directors 
At Rand's 2013 Annual Meeting of Shareholders the following Directors
were elected: Allen F. Grum, Erland E. Kailbourne, Ross B. Kenzie,
Reginald B. Newman, II, Jayne K. Rand and Robert M. Zak. Rand's Board
of Directors also re-appointed Mr. Newman as Chairman of the Board. 
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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