BUFFALO, N.Y., Feb. 8, 2010 (GLOBE NEWSWIRE) -- 


  --  Net Asset Value is $3.40 per share for the quarter ending December 31,
      2009
  --  One new investment and five follow-on investments totaling $1.5 million
  --  Two portfolio exits -- Kionix, Inc. and RAMSCO generated $5.7 million 




Rand Capital Corporation (Nasdaq:RAND) ("Rand"), a business development
company (BDC) that provides capital and managerial expertise for small
to medium-sized private companies, announced its financial results for
the fourth quarter ended December 31, 2009 highlighting a net asset
value of $3.40 per share, a decrease of ($0.02) from September 30,
2009. At the end of the fourth quarter, Rand's total investment
portfolio was valued at $24.3 million, which exceeds its cost basis of
$14.8 million, reflecting $9.5 million in net unrealized appreciation.

Allen F. Grum, President of Rand Capital, stated: "It was a busy fourth
quarter as we deployed capital into one new investment and five
existing portfolio companies. We exited Kionix, Inc. and RAMSCO which
were the first two investments in our SBIC. These investments were very
successful with estimated annualized returns over 20%. With
approximately $10 million in cash, we are busy evaluating new
investment opportunities."

Portfolio Activities

During the quarter:


  --  Rand made one new investment of $250,000 in Rheonix, Inc. (Ithaca, NY)
      (www.rheonix.com). Rheonix is a spin-off of Kionix, Inc. (Ithaca, NY)
      (www.kionix.com) and develops microfluidic testing devices used in the
      testing of small volumes of chemicals and biological fluids.
  --  Also during the quarter, Rand made a $150,000 follow-on investment in
      Microcision LLC (Philadelphia, PA) (www.microcision.com). Microcision is
      a manufacturer of custom medical and dental implants including precision
      machined components, implants and assemblies.
  --  A $500,000 follow-on investment was made in Carolina Skiff, LLC
      (Waycross, GA) (www.carolinaskiff.com) which manufactures fresh water,
      ocean fishing and pleasure boats.
  --  A $75,000 follow-on investment in SOMS Technologies, LLC (Valhalla, NY)
      (www.microgreenfilter.com). SOMS produces and markets the microGreen
      Extended Performance Oil Filter.
  --  A $500,000 follow-on investment in Gemcor II, LLC (West Seneca, NY)
      (www.gemcor.com), which designs and sells automatic riveting machines
      used in the assembly of aircraft components.




Rand realized two exits during the fourth quarter. Kionix, Inc. was
purchased by ROHM Co., Ltd. which resulted in proceeds of $5.3 million
on Rand's original $1.5 million equity investment. Also during the
quarter, RAMSCO, Inc. (Watervliet, NY) (www.ramsco.com) repaid its
Notes and warrants to Rand.

During the quarter, Rand revalued its investment in Niagara Dispensing
Technologies, Inc. (Amherst, NY) (www.niagaradispensing.com) to reflect
its current and expected financial performance.

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.

ABOUT RAND CAPITAL

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 subsidiaries provide capital and managerial expertise to
small and medium sized private companies that lack sufficient channels
to the capital markets. Rand is traded on the NASDAQ under the symbol
"RAND". Rand is headquartered in Buffalo, NY. www.randcapital.com


CONTACT:  Rand Capital Corporation
          Investor Contact: 
          Allen F. Grum, President 
          716.853.0802
          pgrum@randcapital.com