Rand Capital Participates in $2.2 Million Financing of Massachusetts based Innov-X Systems, Inc. BUFFALO, N.Y., Oct. 26 /PRNewswire-FirstCall/ -- Rand Capital (NASDAQ: Rand) announced that it has participated with CEI Ventures, Inc. (Portland, ME) in a $2.2 Million financing to Innov-X Systems, Inc., a Woburn, MA based manufacturer of handheld elemental analyzers. Innov-X Systems was founded in 2001 and manufactures handheld analyzers, utilizing X-ray fluorescence (XRF) technology, operating under a iPAQ, Windows CE system, to produce a device which can efficiently and accurately provide quick, onsite alloy analysis and "laboratory quality" metals testing of a wide variety of sample types. http://www.innov-xsys.com/ Rand's wholly owned subsidiary, Rand Capital SBIC, L.P., initially participated in the round of financing with a $350,000 investment in the form of a Subordinated Term Note with warrants for a minority interest in the company. Rand has a follow-on commitment to invest an additional $250,000; CEI Ventures invested under the same terms. Key Bank will also participate in the financing in a senior lending relationship. The Innov-x analyzer is utilized in many different markets including Homeland Defense and heavy industry. Homeland Defense applications include nuclear non-proliferation and border security. Heavy industry applications span alloy analysis for petrochemical, power plant, aerospace, pharmaceutical and fabricator markets, environmental applications, plastics analysis and recycling, and a variety of specialty analytical markets. Innov-X also maintains an active OEM business for dedicated XRF applications. Innov-X's devices are available in the United States through its sales force and internationally through its offices located in Holland, Hong Kong and Lusaka, Zambia. The investment will be used for rapid development and deployment of several new products and a rapid expansion of worldwide sales and marketing efforts. Dan Penberthy, Rand's Executive Vice President, stated "Innov-X's rapid sales growth and strong financial results, combined with an array of new products and applications makes this an excellent investment opportunity." CEI Ventures President, Nat Hensaw stated "Innov-X Systems projected job growth, and strong management team, combined with their use of environmentally friendly XRF technology, as opposed to its competitor's products which rely on radioactive isotopes for their operation, combine to support the socially responsible investing of our fund." Information in this press release contains forward-looking statements and reflect the Corporation's current beliefs. Numerous factors could cause actual results to differ materially. See the Corporation's Securities and Exchange Commission filings for a discussion of risks and uncertainties associated with venture capital investing that could affect actual results. Rand Capital Corporation undertakes no obligation to revise these forward- looking statements for new events and uncertainties. ABOUT CEI VENTURES CEI Ventures is a for-profit subsidiary of Coastal Enterprises, Inc. (CEI), a 26 year old community development financial institution (CDFI) headquartered in Wiscasset, Maine. Through loan programs and broad ranging technical assistance, CEI helps people and communities, particularly those with low incomes, reach an adequate and equitable standard of living, learning and working in harmony with our natural environment. http://www.ceiventures.com/ ABOUT RAND CAPITAL Rand Capital is a publicly held Business Development Company (BDC) licensed by the Small Business Administration (SBA) as a Small Business Investment Company (SBIC). Rand is traded on the NASDAQ under the symbol "RAND". Rand is headquartered in Buffalo, NY. http://www.randcapital.com/ For further information about Innov-x Systems, Inc. contact: Donald Sackett, President, Innov-X Systems, Inc. 10 Gill St. Suite Q, Woburn, MA 01801 Toll Free: 866.4.Innov-X or 781.938.5005 DATASOURCE: Rand Capital CONTACT: Daniel P. Penberthy of Rand Capital, +1-716-853-0802 Web site: http://www.randcapital.com/ http://www.innov-xsys.com/ http://www.ceiventures.com/

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