Rand Capital Announces Net Asset Value Growth to $3.93, One New Investment, One Follow-On Investment and Continued Repurchase of

Rand Capital Announces Net Asset Value Growth to $3.93, One New Investment, One 
Follow-On Investment and Continued Repurchase of Rand
BUFFALO, NY -- (Marketwired) -- 07/30/13 --  Rand Capital Corporation

--  Net Asset Value is $3.93 per share, $.06 or 1.5% growth over the prior
--  Notable investments during the quarter included a $500,000 new
    investment in SocialFlow, Inc. and $75,000 in a follow-on investment
    in Mercantile Adjustment Bureau, LLC
--  Total assets of $31.9 million
--  Repurchased 115,175 shares with remaining authorization for an
    additional 132,027 shares

Rand Capital Corporation ("Rand") (NASDAQ: RAND) announced strong
operating results grew its June 30, 2013 net asset value to $31.9
million, or $3.93 per share, representing a $.06 per share increase
from March 31, 2013. 
Portfolio activity during the second quarter of 2013 included: 

--  SocialFlow, Inc. (New York, NY) (www.socialflow.com) - Preferred
    equity investment of $500,000. SocialFlow provides instant analysis of
    current opportunities on social networks to determine the best time
    for its customers to publish or advertise.
--  Mercantile Adjustment Bureau, LLC (Williamsville, NY)
    (www.mercantilesolutions.com) - $75,000 follow-on investment in the
    form of a Subordinated Secure Note. Mercantile is a full service
    accounts receivable management and collection company.
--  Synacor, Inc. (Buffalo, NY) (www.synacor.com) - Rand holds 428,643
    shares, valued at $1.3 million ($3.06 per share) at June 30, 2013.
    Rand has sold 229,500 shares in 2013 generating a $1.1 million
    realized gain.

During the quarter Rand repurchased 115,175 of the previously approved
500,000 shares at an average price of $2.90 per share, or a 26%
discount from the quarter's net asset book value of $3.93. 
Rand's CFO, Daniel Penberthy, stated, "The Corporation's active
treasury stock buyback program is accretive to net asset value per
share and we will continue to repurchase shares when the market
pricing is deemed appropriate." Rand now holds 367,973 shares in
Treasury with 132,027 authorized shares remaining to be repurchased. 
Allen F. Grum, President of Rand Capital, stated, "Our portfolio
companies continue to produce strong operating results. Additionally,
we are pursuing numerous new investments as we grow the investment
portfolio of Rand Capital SBIC." 
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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