HARRIS & HARRIS GROUP WARNS OF IMPACT OF ECONOMY AND MARKETS ON INVESTEE COMPANIES
Harris & Harris Group, Inc. warned today that the effects on its investee companies of the economic slowdown and financial bear market prior to September 11 have been exacerbated by the disaster and its aftermath. These negative forces will make it more difficult in general for the types of high-technology, early-stage companies in which the Company makes private equity investments to meet budgets and will make additional financing more expensive and more difficult to obtain. The degree of vulnerability of each of the Company's specific private equity holdings ranges from indiscernible to quite high. Thus it would not be surprising if the Company wrote down in value one or more of its private equity investments when the Company next values it holdings. The Company's next regularly scheduled meeting to value its holdings will take place on October 17, 2001, at which time it will value its assets as of September 30, 2001.
As of June 30, 2001, the last date on which the Company valued its holdings, the Company's private equity portfolio had a gross value of $13,396,684. At June 30, 2001, the Company also had publicly traded stocks, with a value of $10,944,149, in companies in which the Company had invested prior to their going public. As previously announced, these publicly traded stocks were sold in the open market prior to September 11 for net proceeds of $6,786,516. As of June 30, 2001, the Company's net asset value was $29,860,794, and its net asset value per share (NAV) was $3.29. As of today's date, the Company has approximately $14 million in cash and equivalents and is debt free.
Harris & Harris Group is a publicly traded venture capital company organized as a Business Development Company. Harris & Harris Group has 9,064,231 common shares issued and outstanding.
Detailed information about Harris & Harris Group and its holdings can also be found on its website at www.hhgp.com.
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.