Keating Capital Completes Exit in Remaining Solazyme Position

  Keating Capital Completes Exit in Remaining Solazyme Position

   Fourth Portfolio Company Exit Since Making First Investment 3½ Years Ago

Business Wire

GREENWOOD VILLAGE, Colo. -- May 17, 2013

Keating Capital, Inc. (“Keating Capital” or the “Company”) (Nasdaq:KIPO)
announced today that it sold the remaining 147,927 shares it held in Solazyme,
Inc. (“Solazyme”) during May 2013. The sale generated net proceeds of
$1,554,982, or $10.51 per share, and a net realized gain of $49,820, or
approximately $0.005 for each Keating Capital share outstanding. As of March
31, 2013, these shares had a fair value of $1,153,831, or $7.80 per share,
based on Solazyme’s closing market price on March 31, 2013.

During the first half of 2012, Keating Capital sold 65,000 shares of Solazyme
common stock resulting in net proceeds of $979,219 and a net realized gain of
$403,631. Accordingly, the Company generated aggregate net realized capital
gains of $453,452 from the sale of its entire Solazyme investment,
representing a return multiple of 1.22x its investment cost over a
weighted-average holding period of approximately 1.8 years. This represents an
internal rate of return, or IRR, on this investment of approximately 12.4% per
year.

During the second quarter of 2013, in addition to the disposition of its
remaining Solazyme position, the Company has sold its entire positions in
LifeLock, Inc. and Corsair, Inc. As a result of these second quarter sales,
the Company has generated aggregate net realized gains of approximately $4.4
million, or approximately $0.48 per share for each Keating Capital share
outstanding. As of March 31, 2013, the Company had a net asset value of $8.00
per share.

The Company has now completed four portfolio company exits (out of a total of
20 portfolio company investments), three of which have generated a net
realized gain. On a combined basis, the four portfolio company exits had the
following characteristics:

  *An average return multiple of 1.4x the Company’s investment cost
  *A weighted-average holding period of 1.6 years
  *An overall internal rate of return of 22.4% per year

“Solazyme is an extraordinary company and we believe it will achieve
remarkable results across multiple industries in the years to come,” stated
Timothy J. Keating, CEO of Keating Capital. “However, Keating Capital is in
the private-to-public valuation arbitrage business and attempts to operate
with strict discipline with respect to valuation, target return and holding
period in our investments. In the case of Solazyme, we concluded that
completing our fourth complete exit (out of a total of 20 investments) in the
3½ years since our first investment was the best way to generate additional
net realized gains for our stockholders now,” added Mr. Keating.

About Keating Capital, Inc.

Keating Capital is a business development company that specializes in making
pre-IPO investments in innovative, emerging growth companies that are
committed to and capable of becoming public. We provide investors with the
ability to participate in a unique fund that allows our stockholders to share
in the potential value accretion that we believe typically occurs once a
company transforms from private to public status. Keating Capital’s shares are
listed on Nasdaq under the ticker symbol “KIPO.”

To be added to Keating Capital’s email distribution list to receive quarterly
newsletters and other announcements, go to www.KeatingCapital.com/contact.

Forward-Looking Statements

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 Keating Capital’s current beliefs, and a number of important factors
could cause actual results to differ materially from those expressed in this
press release, including the factors set forth in “Risk Factors” set forth in
Keating Capital’s Form 10-K and Form 10-Q filed with the Securities and
Exchange Commission (“SEC”), and subsequent filings with the SEC. Please refer
to Keating Capital’s SEC filings for a more detailed discussion of the risks
and uncertainties associated with its business, including but not limited to
the risks and uncertainties associated with investing in micro- and small-cap
companies. Except as required by the federal securities laws, Keating Capital
undertakes no obligation to revise or update any forward-looking statements,
whether as a result of new information, future events or otherwise. The
reference to Keating Capital’s website has been provided as a convenience, and
the information contained on such website is not incorporated by reference
into this press release.

Contact:

Investor Relations:
Keating Capital, Inc.
Margie L. Blackwell, 720-889-0133
Investor Relations Director
mb@keatinginvestments.com
 
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