SOURCE: Rand Capital Corporation

April 10, 2006 09:52 ET

Niagara Dispensing Technologies, Inc. Receives Funding to Introduce EXACTAP™ to Market

$3.5 Million Round Led by Rand Capital SBIC, L.P.

BUFFALO, NY -- (MARKET WIRE) -- April 10, 2006 -- Niagara Dispensing Technologies, Inc. has closed on a round of financing led by Rand Capital (NASDAQ: RAND). Other investors include the Regional Development Corporation, an ECIDA affiliate, and the Empire State Development Small Business Technology Investment Fund.

Niagara Dispensing Technologies (NDT) is a ventured backed manufacturer of precision, high-speed draft beer dispensing systems, headquartered in Tonawanda, New York. The NDT products represent a revolution in draft beer dispensing, branded as EXACTAP, providing a measured pour in as fast as three seconds for a pint serving. The products eliminate waste, provide a perfect foam head every time, and provide detailed documentation regarding usage. Stadium, restaurant, and bar systems are available. www.exactpour.com

Iver Phallen, of Niagara Dispensing stated, "Draft beer dispensing methods have not changed in two centuries. Niagara Dispensing brings new technology that will fundamentally improve the way draft beer is served."

Pete Grum, Manager of Rand Capital SBIC, L.P., believes that EXACTAP™ will revolutionize the beer pouring industry. "This patented product addresses the need for control and speed in the market. This is validated by initial domestic and international orders. We look forward to working with the Company."

Alfred D. Culliton of the ECIDA stated, "RDC and ECIDA are committed to supporting the development and growth of local technology businesses and employment in Western New York."

Empire State Development Chairman Charles A. Gargano said, "Through programs such as the Small Business Technology Investment Fund, Governor Pataki has made New York State an attractive place for businesses. When companies invest in our state, our workforce, our families and our economy benefit."

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 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. www.randcapital.com

ABOUT ECIDA

Through its affiliated corporations, ECIDA administers loan programs which provide funding to bridge the gap between start-up or growing company's financial requirements and its ability to borrow from existing institutional sources. Sources can include banks, venture capital companies and angel investors. Since 1979, almost $100 million has been loaned to nearly 500 businesses. www.ecidany.com and www.nrvf.com

ABOUT NIAGARA DISPENSING

Niagara Dispensing Technologies, Inc. (NDT) is a privately held beverage dispense technology development and products manufacturing company, headquartered in Tonawanda, New York. The Company has been organized to bring commercial success to its proprietary rapid beer dispensing technology. NDT will use its unique and novel technology platform coupled with extensive technical and business experience to bring to world markets a series of draft beer dispenser products that will fundamentally and permanently alter the beer dispensing landscape. www.exactpour.com

ABOUT NYSBTIF

The Small Business Technology Investment Fund (SBTIF) provides start-up high-tech companies throughout New York State with a source of venture capital financing. The fund makes early stage equity and debt investments in companies that have developed new innovative technology products or services, that provide significant competitive advantage, and possesses a strong intellectual property position. www.nylovessmallbiz.com

Contact Information

  • CONTACT:
    Allen F. Grum
    716-853-0802