TRANSFORMING THE FUTURE

NASDAQ : TINY

FIRST. TRANSFORMATIVE. PROVEN.

NEEDHAM GROWTH CONFERENCE

SAFE HARBOR STATEMENT

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.

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HARRIS & HARRIS GROUP

•  NASDAQ: TINY

•  NAV/Share: $3.85(1)

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(1) NAV/Share as of September 30, 2014

CORPORATE MISSION

Harris & Harris Group Builds Transformative Companies

from Disruptive Science

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COMPANY HIGHLIGHTS

•  30-Year History Building Companies

•  Holds Equity in Over 20 Transformational Companies

•  Value Not Yet Realized

•  Focused Strategy for Accelerated Growth

•  Strong Interdisciplinary Team

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Invest

Build Value Return

BUSINESS MODEL

Evergreen Structure Facilitates Growth

•  NAV Growth •  Company Building •  Board Participation •  Partnerships

•  Early Stage •  BIOLOGY+

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Liq

uid

Early-Stage, Active Involvement

Late-Stage Passive Involvement

Illiq

uid

Investing in Disruptive Science

OUR COMPETITIVE POSITION

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Public VC Firms

Public Holding Companies

Private VC Firms

WHY EARLY-STAGE

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•  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+

RECOGNIZED LEADERSHIP IN EARLY-STAGE

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#1 Venture Capital Investor in High-Technology

As measured by GrantIQ’s SBIR Source in February 2014: www.sbirsource.com/sbir/investors

Interdisciplinary innovation is required to address these healthcare challenges.

HEALTHCARE TECHNOLOGY

SOLUTIONS BIOLOGY

Electronics

Physics

Materials Science

Chemistry

IT

Engineering

Mathematics

DISTINCTIVE APPROACH

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BIOLOGY ENABLES H&H PORTFOLIO COMPANY

Engineering Single Cell Analysis

Physics Non-Invasive, High-Resolution Imaging

Mathematics High-Quality

Molecular Diagnostics

Material Science Targeted

Bio-Compatible Drug Delivery

Electronics Personal Genomics

Analytics Protein Structure

Analysis

A DECADE OF BIOLOGY INVESTMENTS

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WE HAVE EXPERIENCE BUILDING COMPANIES

(Amgen, 2011) (NASDAQ:SZYM, 2011)

(CordenPharma, 2013)

(Asahi Kasei, 2011)

(Carl Zeiss, 2013)

Xradia Ancora

BioVex Crystal IS Solazyme

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(Canon, 2014)

Molecular Imprints

Examples of recent Biology+ exits

A PORTFOLIO IN THE RIGHT AREAS

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HZO

UberSEQ

TARA

Mersana Promuc

AgBiome

Enumeral

Nantero

Adesto

Metabolon

EchoPixel

D-Wave

Quantum Computing

Deep Learning Regenerative

Medicine AgTech

Immuno-Oncology

Microbiome Internet of Things

Clean Water

ABS

PWA

METABOLON

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Metabolon’s mission is to provide researchers and health care providers unparalleled, actionable knowledge of the phenotype to prevent, diagnose and treat disease quickly and accurately.

Molecular phenotyping actively measures disease-related changes suggested by genomics, as opposed to merely measuring a genetic predisposition or assessing risk of disease.

DNA RNA

Risk of Disease Genes suggest what might be

Actionable Information

to prevent, diagnose & treat disease

Proteins Small Molecules

Disease Treatment and Mechanism

A cornerstone of human health

METABOLON: A CORNERSTONE OF HUMAN HEALTH

Personalized Medicine

NGS monitoring technology

Diagnostics & biomarker discovery

Began IEM screening Sign up 10

concierge clinics 25 clinics 50+ clinics

2014 2016 2015 2017

•  Fewer diagnostic panels needed •  More cost-effective •  Greater impact & better health

outcomes

UK Italy France

China Target group centers:

Harvard Partners UCLA

Mayo Clinic Stanford

Clinical standard of care – individualized care reaches every patient

METABOLON: PERSONALIZED MEDICINE

Metabolomics becomes the monitoring technology for next-gen sequencing and must-have insight to phenotype

Signed agmts with major organizations

NGS/WGS projects

Expand globally

(esp. Pacific Rim)

2014 2016 2015 2017

CTTV Genomes BC

Chan Soon-Shiong Inst. Major acad. centers:

Broad/MIT GWU UWA

METABOLON: NEXT GEN SEQUENCING

New diagnostic tests become a major player in preventing and treating metabolic disease

Signed agmts with leading clinical labs &

organizations

LDT partners Regulatory

submissions Quantose IR –

CE mark accuGFR (LDT)

Quantose IR FDA approval &

CE mark Quantose IGT –

CE mark Fatty liver (LDT)

Quantose IGT regulatory approvals

Metdia Biotech

2014 2015 2016 2017

METABOLON: DIAGNOSTICS

METABOLON

•  Leader in Metabolomics: 3,000+ Studies, 60+ Patents, $96+ Million Cumulative Revenue

•  2013 Released Three Diagnostic Tests Targeting Diabetes & Cancer

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Actionable Diagnosis

•  Initial Investment: 2006

•  Capital Invested: $ 7.2 Million

•  Voting Ownership: 10-15%

•  Late Stage

Metabolomics Measure

Disease Status

DNA

RNA

Proteins

Disease/ Treatment

Mechanism

Biochemicals

Genetics Show Disease Risk

D-WAVE

Founded  in  1999  

Raised  over  $130M  in  venture  funding  and  

government  grants  since  incep2on  

Premier    First  Customers  

High  margin,  high  growth  system  sales,  service  and  cloud  services  business  

100  US  patents  granted;  over  60  scien2fic  papers  published  

D-WAVE: WHY BUILD A QUANTUM COMPUTER?

•  Solve high-value commercial and scientific problems that can’t be solved today

•  Solve complex problems orders of magnitude faster

•  D-Wave has demonstrated 10,000 – 100,000x speedups

D-WAVE: MISSION

 D-­‐Wave  helps  solve  the  most  challenging  computing  problems  in  the  universe.  

Mission planning

Cancer research

Systems Optimizatio

n

Anomaly detection

Search for exoplanets

D-WAVE: THE MOST ADVANCED QUANTUM COMPUTER IN THE WORLD

10,000

1,000

100

10

1

Number of

Qubits

D-Wave One 128 qubit

D-Wave Two 512 qubit

28 qubit

16 qubit

4 qubit

2002 2006 2010 2014

D-WAVE: RANKED FOURTH IN PATENT POWER FOR COMPUTER SYSTEMS BY IEEE

D-Wave patents cover broad range of domains

•  superconducting qubits

•  quantum processor •  magnetic shielding •  cooling •  software •  algorithms

D-WAVE

•  Only Commercial Quantum Computer in the World

•  Demonstrating 10,000-100,000x Faster Problem Solving

•  Partnered with Lockheed, Google, and NASA

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•  Initial Investment: 2006

•  Capital Invested: $5.8 Million

•  Voting Ownership: 2.5-5%

•  Late Stage

ADESTO: EVOLUTION OF TECHNOLOGY

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1990’s 2000’s 2010’s 2020’s

Era of Computing

Era of Communication

Era of Mobility

Era of Autonomy

Speed (GHz)

Capacity (Gbits)

Technology Drivers and

Requirements

Ultra Low Power

Secure

Connected

Connected Computers

Connected People

Connected

Everything

ADESTO: GROWTH OPPORTUNITY

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10  years

1  year

1    month

1  week

1  day

10  hours

1  hour

0

1980's   1990's 2000's 2010's 2020's

DRIVE TOWARDS AUTONOMOUS CONNECTED SYSTEMS

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Bat

tery

Lif

e

Low Energy Consumption

IoT Requires CONVERGENCE of Low Energy Consumption + High Intelligence

Source: CISCO

ADESTO: CRITICAL REQUIREMENT FOR REALIZATION OF INTERNET OF THINGS

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LOW POWER

“Ability To Use Energy Harvesting as Power Source: Light/Solar, Thermal, RF Scavenging, Vibration”

Sources:

“Low Power is the number 1 priority for IoT and battery-operated mobile devices”

“…cost of installing new wiring to power these devices is prohibitive…”

“…best-in-class low-power non-volatile memory/flash memory technologies…”

“…for a simple system with a small ARM M0 core, the flash memory could conceivably consume 70% of the power…”

“…Power efficiency is critical since these devices are often not connected to power and have to operate using energy harvesting sources or a single battery for several years without maintenance or battery replacement…”

“We measure the chance of success based on being light weight (in terms of code footprint), low power consumption, open and suitable to a multi-platform environment.”

Weeks to Years

ADESTO: IOT MARKET OPPORTUNITY FOR ADESTO

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Semiconductor Revenue Content of IoT Gartner forecasts almost 30 percent growth [CAGR] through 2020 for IoT semiconductor revenue

Source: IDC, Applied Materials "As product designers dream up ways to exploit the inherent connectivity that will be offered in intelligent products, we expect the variety of devices offered to explode," added Middleton. Gartner estimates the incremental IoT supplier revenue related to IoT in 2020 – hardware, software and services – to be worth $309 billion.

2016 $15B $1.5B $600M 2017 $19B $1.9B $750M 2018 $25B $2.5B $1B 2019 $33B $3.3B $1.3B 2020 $44B $4.5B $1.7B

IoT IoT Non-Volatile Adesto’s Semi Content Memory Content IoT SAM

Assumes 10% of semi content is memory Assumes 40% of memory content is low density

ADESTO TECHNOLOGIES

•  Fabless Ultra Low Power, Non-Volatile Memory Producer

•  Multiple Design Wins in Internet of Things (IoT) Market

•  100x Reduction in Power Consumption Compared to Competitive Offerings

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•  Initial Investment: 2007

•  Capital Invested: $10.5 Million

•  Ownership: 10-15%

•  Late Stage

Enabling IoT with Ultra Low Power Memory

Technology Platforms

Company Building

Market Access

Scale & Manufacturing

Corporate Partner

Corporate Partners are Highly Complementary

Technology Platforms

Company Building

Market Access

Scale

PARTNERING EARLY IS BENEFICIAL

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PORTFOLIO PARTNERS

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H&H Portfolio

Public Sector

Private Sector

Note: Includes corporate partnerships since 2002, which is when the first of the current Managing Directors joined the firm.

NIST

DOE

NSF

NIH

DARPA

ONR

Sephora Crucell

BOSCH

3M

Google

Celgene

syngenta

Microsoft Health Diagnostic Laboratory, Inc.

LIFE Technologies

NASA

Bristol Myers Squibb

Bunge

Chevron

Coherent

Dow

Genentech

Hitachi Chemical

Illumina

Intel

LG Innotek

Lockheed Martin Metter Toledo

Mitsui

Panasonic

Samsung

Sanofi-Aventix

Synaptics Unilever Tyco

Novartis

Boehringer Ingelheim

Oxford Biosciences

Pfizer

Corporations currently add value to Harris & Harris Group and our portfolio companies in multiple ways.

CURRENT EXAMPLE OF OUR PARTNERING STRATEGY

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STRONG INTERDISCIPLINARY TEAM

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Doug Jamison Managing Director, CEO

Daniel Wolfe, PhD Managing Director, President

•  90+ Years of Experience* •  55+ Companies •  150+ Rounds of Financing •  30+ Exits for $2.5 Billion+**

•  $270 Million+ in Revenue Generated By Portfolio Companies in 2013

Alexei Andreev, PhD Managing Director, EVP

Misti Ushio, PhD Managing Director, CSO

Blake Stevens, PhD Senior Associate, VP

*Includes Investing and Industry experience ** Total value of portfolio companies at time of exit without milestone

payments since 2002, when first deal team member joined

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.

PORTFOLIO BY STAGE

LATE EARLY MID

Mersana

Enumeral

ABS

Senova

AgBiome

EchoPixel

ProMuc

Nantero SiOnyx

OpGen

HZO

Bridgelux

Nanosys Cambrios

Adesto

PWA

Ensemble

Champions

D-Wave

Metabolon

BIOLOGY+

Other

Molecular Imprints

UberSeq

Accelerator

TARA Biosystems

GAME PLAN FOR ACCELERATED GROWTH

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• Realize Value in Current Portfolio

•  Invest in BIOLOGY+

•  Partner for Resources & Expertise

• Return Value to Shareholders

COMPANY HIGHLIGHTS

•  30-Year History Building Companies

•  Holds Equity in Over 20 Transformational Companies

•  Value Not Yet Realized

•  Focused Strategy for Accelerated Growth

•  Strong Interdisciplinary Team

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