Harris & Harris Group Notes SEC Adopts New Rules for Business Development Companies and Reproposes New Category of Eligible Portfolio Company

Business Wire, Oct 26, 2006

NEW YORK -- Harris & Harris Group noted today that the Securities and Exchange Commission (SEC) has adopted new rules under the Investment Company Act of 1940 that expand the permissible investment activities of business development companies (BDCs). The SEC has also reproposed for comment an additional definition of eligible portfolio company. These proposed rules, if adopted, would facilitate small business capital formation by providing added flexibility for BDCs to invest in some smaller publicly traded companies. The entire press release may be read at the SEC's website (http://www.sec.gov/news/press/2006/2006-181.htm).

Harris & Harris Group is a publicly traded venture capital company that makes initial investments exclusively in tiny technology, including nanotechnology, microsystems and microelectromechanical systems (MEMS). The Company's last 30 initial private equity investments have been in tiny technology-enabled companies. The Company has 20,756,345 common shares outstanding.

Detailed information about Harris & Harris Group and its holdings can be found on its website at www.TinyTechVC.com. [TINY-P]

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 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 and the Company's report on Form 10-Q for the quarter ended June 30, 2006, 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. The reference to the websites www.TinyTechVC.com and www.sec.gov have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.