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Rand Capital Announces Continued Growth in Q2

17 July 1998

Rand Capital Announces Continued Growth in Second Quarter Results

    BUFFALO, N.Y., July 16 -- Rand Capital Corporation
announced that its net asset value was $8.4 million, or
$1.48 per share, for the quarter ended June 30, 1998.  This represents an
increase of $.01 per share from March 31, 1998, and is the third consecutive
quarter that Rand has shown an increase in its per share net asset value.
    During the quarter, Rand's common stock investment in MINRAD, Inc. was
increased to $623,000 based on the company's successful execution on their
business plan, subsequent equity financing and sales backlog.  [MINRAD,
located in Orchard Park, N.Y., has developed a patented laser guided surgical
device that is being marketed and sold both domestically and internationally].
    Rand also increased the valuation of ARS, Inc. to $1,067,000, based on the
accrual of warrants which increased the subordinated debentures yield to
18.74%.  [ARS, located in Buffalo, N.Y., assembles and distributes heat
transfer products such as radiators and condensors for the automobile
aftermarket industry.  ARS's Internet site is http://www.arsradiators.com].
    Negatively affecting Rand's asset value was a $92,000 writedown of its
investment in Lightbridge, Inc. based on that stock's quarter
end closing price.  Rand obtained the stock from a previous investment in
Coral Systems that was bought out by Lightbridge in 1997.  [Lightbridge
provides software based services for the wireless telecommunication industry.
Lightbridge's Internet site is http://www.lightbridge.com].
    Rand funded two investments during the quarter, which included
$100,000 bridge financing to UStec, and a follow-on investment of $8,045 to
Platform Technologies Holdings.   [UStec, located in Victor, N.Y.,
manufactures and markets digital wiring systems for residential
telecommunications].
    Rand's President and CEO, Allen F. ("Pete") Grum stated, "We are pleased
that Rand's portfolio companies have begun to execute on their business plans
and reach meaningful milestones.  Their growth has allowed Rand's asset base
to increase over $.06 per share over the last three quarters.  We look
forwarding to continuing this trend in future quarters."
    Rand Capital Corporation is a publicly held venture capital company,
headquartered in Buffalo, New York, registered on the Nasdaq Small Cap Market
under the symbol "RAND".   Rand's investment strategy is to provide expansion
capital and investment, as well as financial advisory services, to companies
inside and outside of the Western New York community.