Harris & Harris Group Inc.

PRESS RELEASE

HARRIS & HARRIS GROUP, INC.	AUGUST 2, 2005
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 BALANCE SHEET FOR SIX MONTHS ENDED JUNE 30, 2005

The increase of $7,001,851 in the second quarter in our net asset value reflected, among other things, the increase of $11,921,734 in the value of our shares in NeuroMetrix, Inc. (Nasdaq: NURO), which went public in July 2004. Because our 1,137,570 shares of NURO are currently our most highly valued holding, the volatility of NURO's stock price is now a significant influence on our net asset value and net asset value per share. NURO closed on March 31, 2005, at $9.55 per share, versus $20.03 per share on June 30, 2005.

The increase in the value of NURO also caused an offsetting increase in our reserve for employee profit sharing in the amount of $2,012,465. We calculate 20 percent of qualifying income pursuant to the terms of the profit-sharing plan and estimate the effect on qualifying income of selling all the portfolio investments that are valued above cost (i.e., are in an unrealized appreciation position). While the accrual will fluctuate as a result of changes in qualifying income and changes in unrealized appreciation, actual payments are made only to the extent that qualifying income exists.

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 24 initial private equity investments have been in tiny-technology enabled companies. The Company has 17,248,845 common shares outstanding.

Detailed information about Harris & Harris Group, Inc. and its holdings can be found on its website at http://www.TinyTechVC.com.

SUMMARY OF FINANCIAL RESULTS

June 30, 2005 December 31, 2004 June 30, 2004

(Unaudited) (Audited) (Unadited)

Total Assets $103,994,225 $79,361,451 $42,342,430

Net Assets $79,513,203 $74,744,799 $39,266,216

Total Net Income Tax Liability $1,356,579 $1,361,990 $661,294

Net Asset Value per Share $4.61 $4.33 $2.85

Shares Outstanding 17,248,845 17,248,845 13,798,845

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.