PRESS RELEASE
| HARRIS & HARRIS GROUP, INC. |
JULY 17, 2002 |
| ONE ROCKEFELLER PLAZA |
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| NEW YORK, NEW YORK 10020 |
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| NASDAQ/NMS SYMBOL: TINY |
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| CONTACT: CHARLES E. HARRIS |
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| TEL. NO. (212) 332-3606 |
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HARRIS & HARRIS GROUP, INC. NET ASSET VALUE INCREASES TO $2.68 PER SHARE
Harris & Harris Group, Inc. (the "Company") reported today that, in the quarter ended June 30, 2002, its net asset value per share ("NAV") increased from $2.63 to $2.68. This increase in the Company's NAV reflected the strong performance of PHZ Capital Partners, L.P. ("PHZ") during the second quarter. The valuations of the Company's other private equity holdings were unchanged during the quarter.
The Company owns 20 percent of privately held PHZ, a non-controlled affiliated company of the Company. PHZ is a non-registered investment advisor utilizing proprietary algorithms to manage third-party assets through private limited partnerships investing primarily in global financial futures, long/short equities and interbank FX. Although PHZ has been profitable and has made cash distributions to its partners, including the Company, for several years, PHZ was especially profitable in the second quarter of 2002. There can be no assurance that PHZ will be profitable in future quarters or years. The Company values PHZ at its book value.
In 1994, we invested in our first tiny-technology 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 Nantero, our last seven private equity investments have been in tiny-technology enabled companies.
SUMMARY OF FINANCIAL RESULTS
|
June 30, 2002 |
March 31, 2002 |
December 31, 2001 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
| Total Assets |
$26,818,408 |
$35,005,570 |
$39,682,367 |
| Net Assets |
$23,732,125 |
$23,297,836 |
$24,334,770 |
| Total Income Tax Liability |
$1,315,878 |
$1,362,663 |
$1,619,538 |
| Accrued Profit Sharing |
$427,567 |
$306,241 |
$178,282 |
| Net Asset Value per Share |
$2.68 |
$2.63 |
$2.75 |
| Shares Outstanding |
8,864,231 |
8,864,231 |
8,864,231 |
Harris & Harris Group is a publicly traded venture capital company organized as a Business Development Company. Harris & Harris Group has 8,864,231 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 for 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 and recent Prospectus 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.
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