Harris & Harris Group Inc.

PRESS RELEASE

HARRIS & HARRIS GROUP, INC.	AUGUST 23, 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, INC. ANNOUNCES CLOSING OF PUBLIC OFFERING OF 3,050,000 SHARES OF COMMON STOCK

Harris & Harris Group, Inc. (NASDAQ: TINY), today announced that it has closed a public offering of 3,050,000 shares of its common stock at $11.25 per share for estimated net proceeds of approximately $31,913,750 after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. Harris & Harris Group has granted an option to the underwriters to purchase up to an additional 457,500 shares of common stock through September 16, 2005, to cover over-allotments, if any. All of the shares of common stock have been sold by Harris & Harris Group pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission.

ThinkEquity Partners LLC acted as the sole book runner for the offering. Punk, Ziegel & Company acted as co-manager for the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A prospectus supplement relating to these securities has been filed with the Securities and Exchange Commission. This offering of the shares of common stock may be made only by means of the prospectus supplement and related prospectus, copies of which may be obtained from ThinkEquity Partners LLC, 600 Montgomery Street, San Francisco, CA 94111 (Telephone number 415-249-2900) or Punk, Ziegel & Company, 520 Madison Avenue, 4th Floor, New York, NY 10022 (Telephone number 212-308-9494).

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. As of today, the Company has 20,298,845 shares of common stock outstanding.

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

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 Registration Statement on Form N-2 (File No. 333-112862) and Annual Report on Form 10-K for the fiscal year ended December 31, 2004, each 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.