Harris & Harris Group Inc.

PRESS RELEASE

HARRIS & HARRIS GROUP, INC.	MARCH 16, 2006
111 WEST 57TH STREET
NEW YORK, NEW YORK 10019
NASDAQ/NMS SYMBOL: TINY
CONTACT: CHARLES E. HARRIS
TEL. NO. (212) 582-0900

HARRIS & HARRIS GROUP REPORTS FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2005

Harris & Harris Group, Inc., reported today that, as of December 31, 2005, its net asset value and net asset value per share were $117,987,742 and $5.68, respectively. Net asset value declined by $5,388,950, or $0.26 per share, from the third quarter of 2005. The primary reason for the decline in net asset value was an increase in the provision for taxes of $8,282,367, partially offset by a decrease in the provision for employee profit sharing of $2,298,095. Both the increase in the provision for taxes and most of the decrease in the provision for employee profit sharing were the result of the decision to pay taxes on behalf of shareholders through a deemed dividend.

The primary reason for the increase in taxes was the sale in the fourth quarter of the Company's position in NeuroMetrix, Inc. (Nasdaq: NURO), for net proceeds of approximately $34,591,136, versus the Company's cost of $4,411,374. The Company was the seed investor in NeuroMetrix, a spin-out from the Harvard-MIT Division of Health, Science and Technology. Accounting rules do not permit the Company to establish reserves for taxes on unrealized gains.

The primary reason for the decrease in the provision for employee profit sharing was that the Company chose to retain its net realized long-term capital gains for reinvestment for growth, rather than distribute them as a cash dividend. When the Company chooses to retain its net realized long-term capital gains, it declares a deemed dividend and pays taxes on behalf of shareholders. Conversely, when the Company distributes its net realized long-term capital gains as a cash dividend, the shareholders pay all of the taxes. The taxes paid by the Company on behalf of shareholders reduce the amount of profit against which the profit sharing payable to employees is calculated. Had the Company chosen to distribute its net realized long-term capital gains as a cash dividend, the provision for employee profit sharing would have been $3,420,737 for 2005, rather than the actual provision for employee profit sharing of $1,796,264 for 2005.

Harris & Harris Group is a publicly traded venture capital company that now makes initial investments exclusively in tiny technology, including nanotechnology, microsystems and microelectromechanical systems (MEMS). The Company's last 27 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.

SUMMARY OF FINANCIAL RESULTS

Dec. 31, 2005 Sept. 30, 2005 Dec. 31,2004

(Audited) (Unaudited) (Audited)
Total Assets $132,947,623 $132,523,181 $79,361,451

Total Net Income Tax Liability $9,637,334 $1,353,454 $1,361,990
Net Assets $117,987,742 $123,376,692 $74,744,799

Net Asset Value per Share $5.68 $5.94 $4.33

Shares Outstanding 20,756,345 20,756,345 17,248,845

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 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 website www.TinyTechVC.com has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.