Harris & Harris Group Reports Net Asset Value of $2.37 Per Share as of December 31, 2002.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 6, 2003

Harris & Harris Group, Inc. (Nasdaq/NMS:TINY) announced today that its unaudited net asset value and net asset value per share (NAV) as of December 31, 2002, were $27,256,046 and $2.37, respectively. Net assets decreased in the fourth quarter from the third quarter of 2002 by $2,803,037. This decrease reflected an increase in total income tax liability of $743,455, owing primarily to the Company's liquidation of its interest in PHZ Capital Partners LP; and write-downs of private equity investments totaling $2,647,171. These write-downs were partially offset by increases of $769,581 in valuations of other of the Company's private equity holdings, including the Company's liquidation of its interest in PHZ for $400,221 more than its valuation of that interest at September 30, 2002. Thus, net write-downs of private equity investments totaled $1,877,590.

The year-end write-downs included the Company's 100 percent, $1 million, write-down of Kriton Medical, Inc., a developer of ventricular assist devices. The Company also wrote down by $1,647,171 its investments in telecommunications equipment-related private equity investments. After the write-downs, such telecommunications equipment-related investments constituted 3.59 percent of the Company's net assets at December 31, 2002.

                     SUMMARY OF FINANCIAL RESULTS

                        December 31,    September 30,   December 31,
                           2002             2002            2001
                        (Unaudited)     (Unaudited)      (Audited)

Total Assets           $  35,951,969   $  32,784,985   $   39,682,367
Net Assets             $  27,256,046   $  30,059,083   $   24,334,770
Total Income Tax
 Liability             $   1,527,000   $     783,545   $    1,619,538
Net Asset Value per
 Share                 $        2.37   $        2.61   $         2.75
Shares Outstanding        11,498,845      11,498,845        8,864,231

Harris & Harris Group is a publicly traded venture capital company. The Company now makes initial investments exclusively in tiny-technology enabled companies, and its last nine initial private equity investments have been in such companies.

Harris & Harris Group, Inc. is a Business Development Company with 11,498,845 common shares outstanding.

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

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.