Harris & Harris Group Inc.

NEWS RELEASE

HARRIS & HARRIS GROUP, INC.	July 10, 2002
ONE ROCKEFELLER PLAZA
NEW YORK, NEW YORK 10020
NASDAQ/NMS SYMBOL: TINY
CONTACT: CHARLES E. HARRIS
TEL. NO. (212) 332-3606

HARRIS & HARRIS GROUP NOTES CONTINUUM PHOTONICS FINANCING ANNOUNCEMENT

Harris & Harris Group, Inc. noted today that privately held Continuum Photonics, Inc. has announced the $14 million Series B financing in which Harris & Harris Group recently made a $1 million investment. This press release is available on PRNewswire and on www.continuumphotonics.com. As noted in the press release, the $14 million Series B round was led by Flagship Ventures and Prism Venture Partners.

In 1994, we invested in our first tiny-tech company, Nanophase Technologies Corporation, a spinoff from Argonne National Laboratory, which completed an initial public offering in 1997. We sold our interest in Nanophase in 2001 and invested part of the proceeds of the sale in August, 2001, in privately held Nantero, Inc., a Harvard University spinoff developing advanced semiconductors using nanotechnology. Including Continuum Photonics, our last seven private equity investments have been in tiny-technology enabled companies.

Harris & Harris Group is a Business Development Company with 8,864,231 common shares outstanding.

Detailed information about Harris & Harris Group and its holdings can be found on its website at http://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.