Rand Capital Announces Third Quarter Results

* Net Asset Value is $3.39 for the quarter ending September 30, 2008
* $3.6 million is available for future investment
* Stock repurchase plan authorized
BUFFALO, N.Y., Oct. 23, 2008 (GLOBE NEWSWIRE) -- Rand Capital Corporation
(Nasdaq:RAND) ("Rand"), a business development company (BDC) that provides
capital and managerial expertise for small to medium-sized private companies,
announced its financial results for the third quarter ended September 30, 2008
highlighting a net asset value of $3.39 per share, a decrease of $0.06 (2%) from
June 30, 2008. At the end of the third quarter, Rand's total investment
portfolio was valued at $25.6 million, which exceeds its cost basis of $13.5
million, reflecting $12.1 million in net unrealized appreciation.

Allen F. Grum, President of Rand Capital stated, "We are spending more time with
our portfolio companies during this time of changing credit and equity markets.
However, in the recent weeks we have identified several promising candidates for
new investments and hope to share these in the coming quarters."

Portfolio Activities

During the quarter, Rand did not invest in any new companies. Our financial
results were the result of us revaluing our investment in Rocket Broadband
Networks, Inc. (Amherst, NY) (www.rocketbroadband.com) to reflect current
business conditions. We continue to monitor the situation to maximize our value.
Also, Synacor, Inc. (Buffalo, NY) (www.synacor.com) has withdrawn plans for a
public offering through a notification with the Securities and Exchange
Commission due to market conditions.

Stock Repurchase

The Board of Directors has also reauthorized the repurchase of up to 285,946 of
the Company's outstanding stock through purchases on the open market at any
time, or from time to time, during the one-year period ending October 23, 2009,
when, in the discretion of management, the price of the Company's stock does not
appropriately reflect its net asset value.

Safe Harbor Statement

Information contained in this release, other than historical information, should
be considered forward-looking, and may be subject to inherent uncertainties in
predicting future results and conditions. These statements reflect the
Corporation's current beliefs and are subject to a number of risk-factors,
including: general economic conditions which affect Rand and our portfolio
companies' operations; valuation and illiquid nature of the portfolio
investments; high degree of risk from investing in private companies; the
regulated environment in which we operate; the amount of debt resulting from
borrowing funds from the SBA; dependency upon key management for investment
decisions; and the competitive market for investment opportunities and
fluctuations in quarterly results. Please see the Corporation's Form 10-Q, Item
1A, previously filed with the Securities and Exchange Commission for a detailed
discussion of the risks and uncertainties associated with the Corporation's
business. Except as otherwise required by Federal securities laws, Rand Capital
Corporation and Rand Capital SBIC, L.P. undertakes no obligation to update or
revise forward-looking statements for new events and uncertainties.

ABOUT RAND CAPITAL

Rand Capital is a publicly held Business Development Company (BDC), and its
wholly owned subsidiary is licensed by the Small Business Administration (SBA)
as a Small Business Investment Company (SBIC). Rand and its subsidiaries provide
capital and managerial expertise to small and medium sized private companies
that lack sufficient channels to the capital markets. Rand is traded on the
NASDAQ under the symbol "RAND". Rand is headquartered in Buffalo, NY.
www.randcapital.com

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CONTACT: Rand Capital Corporation
Investor Contact:
Allen F. Grum, President
716.853.0802
pgrum@randcapital.com