TEL. NO. (212) 332-3606


Harris & Harris Group, Inc. (the "Company") announced today that its Rights Offering is now effective. The Company's common stock will trade ex Rights beginning July 1, 2002. Details of the Rights Offering will be in a Prospectus which, along with certain other subscription related documents,will be mailed to shareholders.The Prospectus will be accessible on the World Wide Web through The Prospectus should be read in its entirety. All questions or inquiries relating to the Offer should be directed to our information agent:

Innisfree M&A; Incorporated
501 Madison Avenue
New York, NY 10022
Banks and brokers call collect to (212) 750-5833;
All others call toll-free to (888) 750-5834.

Shareholders of Harris & Harris Group will be entitled to purchase one share of Harris & Harris Group, Inc. common stock at $2.25 per share for each three shares they own on June 28, 2002. The Rights will be transferable until the Expiration Date, July 26, 2002. The Company expects that the Rights will be eligible for listing on the Nasdaq National Market System under the symbol TINYR and that the Rights will be eligible for trading on July 1, 2002. Although the Offering will be limited to 2,954,743 shares of common stock, in the event that any shares are unsubscribed, there will be an over-subscription privilege. Under this over-subscription privilege, shareholders who fully exercise all Rights initially issued to them are entitled to buy shares of common stock that were not bought by other Rights holders.

Certain officers and directors of the Company intend to exercise Rights pursuant to the primary subscription which will result in a subscription of an aggregate of 323,352 shares.

In 1994, we invested in our first tiny-tech company, Nanophase Technologies Corporation, a spinoff from Argonne National Laboratory, which completed an initial public offering in 1997. We sold our interest in Nanophase in 2001 and invested part of the proceeds of the sale in August, 2001, in privately held Nantero, Inc., a Harvard University spinoff developing advanced semiconductors using nanotechnology. Including Nantero, our last seven private equity investments have been in tiny-technology enabled companies.

Harris & Harris Group is a Business Development Company with 8,864,231 common shares outstanding.

Detailed information about Harris & Harris Group and its holdings can be found on its website at

This press release may contain statements of a forward-looking nature relating to future events. Statements contained in this press release that are forward looking statements are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. 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 press 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.

A registration statement relating to the Rights Offering and the Company's common stock has been filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned in this press release. Any such offer will be made only by means of a prospectus specifically relating to such offer. In addition, there will be no sale of any of the securities mentioned in this press release in any state in which any such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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