HARRIS & HARRIS GROUP REPORTS NET ASSET VALUE OF $2.92 PER SHARE AS OF SEPTEMBER 30, 2001
Harris & Harris Group, Inc. announced today that its unaudited net asset value and net asset value per share (NAV) at September 30, 2001, were $25,922,620 and $2.92, respectively. Most of the reduction in net asset value in the third quarter ended September 30, 2001, was owing to declines in value of the Company's publicly held holdings in Nanophase Technologies Corporation (Nasdaq: NANX) and Genomica Corporation (Nasdaq: GNOM) prior to the Company's complete sale of those holdings in the third quarter. These sales took place prior to September 11, 2001. Nanophase and Genomica had been private equity investments of the Company prior to their initial public offerings in November 1997 and September 2000, respectively.
To date, the tragic events of September 11, 2001, have not had a significant overall measurable effect on the value of the Company's private equity holdings. However, we are mindful that the aftershocks of the September 11 disaster are still working their way through the economy and that the vulnerability to economic shocks of thinly capitalized, high technology, start-up companies with negative cash flows is always high. Thus, it may well be that the full negative effects on the Company's private equity portfolio of September 11 lie ahead. Meanwhile, the Company has maintained liquidity for working capital, follow-on investments and new private equity investments. Cash and equivalents at September 30, 2001, totaled $14,158,263.
After repurchasing 200,000 shares of its common stock late in the third quarter, Harris & Harris Group now has 8,864,231 common shares outstanding. Since 1998, the Company has repurchased a total of 1,859,047 of its common shares. The Company is a Business Development Company. Detailed information about the Company and its holdings can also be found on its website at www.hhgp.com.