T RANSFORMING THE F UTURE NASDAQ : TINY S AFE H ARBOR S TATEMENT - PowerPoint PPT Presentation

FIRST. TRANSFORMATIVE. PROVEN. T RANSFORMING THE F UTURE NASDAQ : TINY

S AFE H ARBOR S TATEMENT This presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forward- looking statements are intended to be made pursuant to the Safe Harbor Provisions of 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 herein. Please see the Company’s Annual Report on Form 10-K, as well as subsequent filings, 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. 2

H ARRIS & H ARRIS G ROUP • NASDAQ: TINY • NAV/Share: $3.85 (1) (1) NAV/Share as of September 30, 2014 3

C ORPORATE M ISSION Harris & Harris Group Harris & Harris Group Builds T Builds Transformativ ansformative Companies e Companies from Disruptiv from Disruptive Science e Science 4

C OMPANY H IGHLIGHTS • 30-Year History Building Companies • Holds Equity in Over 20 Transformational Companies • Value Not Yet Realized • Focused Strategy for Accelerated Growth • Strong Interdisciplinary Team 5

B USINESS M ODEL • Early Stage Invest • BIOLOGY+ • Company Building Build Return • NAV Growth • Board Participation Value • Partnerships Evergreen Structure Facilitates Growth 6

O UR C OMPETITIVE P OSITION Public VC Firms Liquid Public Holding Companies Illiquid Private VC Firms Late-Stage Early-Stage, Passive Involvement Active Involvement Investing in Disruptive Science 7

O UR C OMPETITIVE P OSITION Chemistry BioTherapeutics & Electronics Health Care Medical Devices Data & Analytics Technology Physics Materials Science Health Care Services Engineering Mathematics 8

W HY E ARLY -S TAGE • Opportunity to Generate Outsized Returns • Addressing Unmet Needs of S&P 500 Corporations • Limited Competition • Ability to Influence Company Strategy & Execution Unique Skillset for Investing in BIOLOGY+ 9

R ECOGNIZED L EADERSHIP I N E ARLY -S TAGE #1 Venture Capital Investor in High-Technology As measured by GrantIQ’s SBIR Source in February 2014: www.sbirsource.com/sbir/investors 10

W E H AVE E XPERIENCE B UILDING C OMPANIES BioVex Crystal IS Solazyme (Amgen, 2011) (NASDAQ:SZYM, 2011) (Asahi Kasei, 2011) Xradia Ancora Molecular Imprints (Carl Zeiss, 2013) (CordenPharma, 2013) (Canon, 2014) 11

G AME P LAN FOR A CCELERATED G ROWTH • Realize Value in Current Portfolio • Invest in BIOLOGY+ • Partner for Resources & Expertise • Return Value to Shareholders 12

P ORTFOLIO BY S TAGE TARA Biosystems BIOLOGY+ Accelerator Other UberSeq Ensemble Metabolon ProMuc Molecular Imprints D-Wave EchoPixel HZO Champions AgBiome Mersana Senova PWA OpGen ABS Adesto Cambrios Enumeral Nanosys Nantero SiOnyx Bridgelux EARLY MID LATE Note: Equity-focused portfolio companies, year of first investment and stage classifications as of September 30, 2014, not including 1) our publicly traded shares of Solazyme; 2) our rights to milestone payments associated with the acquisitions of BioVex Group, Nextreme Thermal Solutions and Molecular Imprints; and 3) portfolio companies currently in the process of being liquidated, have ceased or are in the process of ceasing operations and/or are seeking a sale of their assets, including Laser Light Engines, Ultora, SynGlyco and Cobalt. 13

M ETABOLON Actionable Diagnosis • Leader in Metabolomics: 3,000+ Studies, 60+ Patents, $96+ Million Cumulative Revenue Genetics Show DNA Disease Risk • Diabetes Diagnostic Franchise • Partnerships With Leading Genomics RNA Researchers and Corporations Including Leroy Hood, Craig Venter, Baylor Univ. and SynapDX Proteins Metabolomics • Initial Investment: 2006 Measure Biochemicals Disease Status • Capital Invested: $7.2 Million • Voting Ownership: 10-15% Disease/ Treatment Mechanism • Late Stage 14

C HAMPIONS O NCOLOGY (OTC:CSBR) >80% Positive Predictive Value • Validated & Differentiated Platform for Personalized Medicine TumorGraft TM Mouse • Personalizing Treatments for Otherwise Untreatable Cancers • Accelerating Development of New Predictive Treatments Therapies for Cancers • Initial Investment: 2011 • Capital Invested: $2.2 Million • Ownership: ~2.5-5% • Late Stage 15

D-W AVE Only Commercial Quantum • Computer in the World Demonstrating 10,000-100,000x • Faster Problem Solving Partnered with Lockheed, • Google, and NASA • Initial Investment: 2006 • Capital Invested: $5.8 Million • Voting Ownership: 2.5-5% • Late Stage 16

E NUMERAL B IOMEDICAL (OTC:ENUM) Proprietary Platform Spin-out of MIT/Harvard • Unique Platform that Leverages • Human Cell Biology Multiple Initial Engagements • with Large Pharmaceutical Companies Recovery of New New Failed Diagnostics Therapeutics Therapeutics • Initial Investment: 2009 • Capital Invested: $5.6 million • Ownership: 15-20% • Early Stage 17

HZO Submersion Protection • Provides Submersion Protection for Electronic Devices • Targeting Wearable, Defense, and Mobile Device Markets • Customers Include Top Brands and Manufacturers in Wearables • Initial Investment: 2011 • Capital Invested: $8.4 Million • Voting Ownership: 15-20% • Mid Stage 18

D ISTINCTIVE A PPROACH Interdisciplinary innovation is required to address these healthcare challenges. Electronics Physics Materials HEALTHCARE Science BIOLOGY TECHNOLOGY Chemistry SOLUTIONS IT Engineering Mathematics 19

A D ECADE OF BIOLOGY I NVESTMENTS BIOLOGY ENABLES H&H PORTFOLIO COMPANY Engineering Single Cell Analysis Non-Invasive, High- Physics Resolution Imaging High-Quality Mathematics Molecular Diagnostics Targeted Bio-Compatible Material Science Drug Delivery Electronics Personal Genomics Protein Structure Analytics Analysis 20

P ARTNERING E ARLY IS B ENEFICIAL Market Scale Access Scale & Market Manufacturing Access Company Technology Corporate Partner Building Platforms Company Technology Platforms Building Corporate Partners are Highly Complementary 21

P ORTFOLIO P ARTNERS Private Sector Public Sector syngenta Google Intel BOSCH Health Diagnostic Microsoft Mitsui Laboratory, Inc. LIFE Technologies ONR Celgene Synaptics NSF 3M Unilever Tyco NIST Genentech Sephora LG Innotek H&H DARPA Crucell Bunge Oxford Biosciences Portfolio DOE Samsung Dow Bristol Myers Squibb NIH Chevron Pfizer Hitachi Chemical NASA Lockheed Martin Novartis Metter Toledo Illumina Coherent Boehringer Ingelheim Note: Includes corporate partnerships since 2002, which Panasonic is when the first of the current Managing Directors joined the firm. Sanofi-Aventix 22

C URRENT E XAMPLE OF O UR P ARTNERING S TRATEGY Corporations currently add value to Harris & Harris Group and our portfolio companies in multiple ways. 23

R ETURNING V ALUE FOR S HAREHOLDERS Generate Meaningful Returns by Increasing Net Asset Value (NAV) per Share 24

G ROWTH IN A VERAGE O WNERSHIP 20%+ 20% Average Ownership 15% 15% 9% 10% 5% 5% 0% 2001-2004 2005-2008 2009-2014 Goal Notes: Average ownership data includes investment-weighted ownership percentages on a fully diluted basis as of September 30, 2014, for unrealized investments including investments in pending tranches of previously closed financings, as applicable. Many of our current portfolio companies may raise additional capital, and depending on many factors our ownership could increase or decrease in these companies as a result of these financings. The data for 2005-2008 does not include ownership in Ancora Pharmaceuticals Inc. If this investment was included, the investment-weighted average ownership would be approximately 16 percent. There is no guarantee that the projections of average future ownership will be achieved. Do not place undue reliance on such projections. 25

S TRONG I NTERDISCIPLINARY T EAM Doug Jamison Misti Ushio, PhD Managing Director, CEO Managing Director, CSO Daniel Wolfe, PhD Alexei Andreev, PhD Managing Director, President Managing Director, EVP • 89 Years of Experience * Blake Stevens, PhD Senior Associate, VP • 35 Exits for $2.5 Billion ** • Domain Expertise *Includes Investing and Industry experience ** Total value of portfolio companies at time of exit without potential future milestone payments since 2002, when first deal team member joined 26

C OMPANY H IGHLIGHTS • 30-Year History Building Companies • Holds Equity in Over 20 Transformational Companies • Value Not Yet Realized • Focused Strategy for Accelerated Growth • Strong Interdisciplinary Team 27

C ORPORATE M ISSION Harris & Harris Group Harris & Harris Group Builds T Builds Transformativ ansformative Companies e Companies from Disruptiv from Disruptive Science e Science 28

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