Rand Capital Increases Net Asset Value to $4.47, One New Investment in Crashmob, Inc., Two Follow-On Investments, Sale of QuaDPharma and Continued Stock Repurchase Plan

BUFFALO, NY--(Marketwired - Nov 3, 2014) - Rand Capital Corporation ("Rand") (NASDAQ: RAND)

• Net Asset Value increases to $4.47 per share, a 1% ($.04) increase from prior quarter
• Three investments in the quarter totaling $630,000, including new investment in Crashmob, Inc. and follow-on investments in First Wave Products Group, LLC and KnowledgeVision Systems, Inc. with a total of $5.1 million invested in 2014
• QuaDPharma, LLC purchased by Kinex Pharmaceuticals, Inc.
• Rand repurchases 28,471 shares of its stock during the quarter, and buyback reauthorized to 1,000,000 shares
• Portfolio of investments represents 26 businesses valued at $32.7 million

Rand Capital Corporation ("Rand") (NASDAQ: RAND) announced September 30, 2014 net asset value of $28.6 million, or $4.47 per share, representing a $.04 increase per share from June 30, 2014, and a $.57 per share increase from September 30, 2013.

Portfolio activity during the third quarter of 2014 included:

• Crashmob, Inc. (Boston, MA) (www.crashmob.com) - $250,000 equity investment. Crashmob developed an app dedicated to crowd sourcing questions and collecting data.
• First Wave Products Group, LLC (Batavia, NY) (www.firstwaveproducts.com) - $80,000 follow-on debt investment. First Wave develops medical devices including First Crush, a dual action device that crushes and grinds medical pills.
• KnowledgeVision Systems, Inc. (Lincoln, MA) (www.knowledgevision.com) - $300,000 follow-on equity investment in Series A-2 Preferred shares. The KnowledgeVision® System provides businesses with a cost-effective, scalable way to turn presentations and web content into an interactive online video experience -- capturing an engaging, multi-sensory story once and then publishing it for on-demand delivery, using portable tools that can be run from any computer, anywhere in the world.
• Sale of QuaDPharma, LLC to Kinex Pharmaceuticals, Inc. (Buffalo, NY) (www.kinexpharma.com) for a combination of cash and Kinex stock.

Stock Repurchase - Rand has repurchased a total of 28,497 shares of its stock in 2014, at an average price $3.05, an approximate 31% discount from the September 30, 2014 Net Asset Value. The Corporation holds 479,613 shares in treasury and its Board of Directors renewed its share buyback authorization to increase its treasury stock holdings up to 1,000,000 shares through October 2015.