SOURCE: Rand Capital Corporation

July 11, 2005 10:44 ET

Rand Capital Announces New Investment in Concentrix, Corporation and Follow-On Investment in Kionix, Corp.

BUFFALO, NY -- (MARKET WIRE) -- July 11, 2005 -- Rand Capital (NASDAQ: RAND) and its wholly owned subsidiary, Rand Capital SBIC, L.P., announces an investment in Pittsford, NY headquartered Concentrix Corporation and a follow-on investment in Kionix, Inc., located in Ithaca, NY.

Rand invested $600,000 as part of a $750,000 Convertible Note financing with Onondaga Venture Capital Fund, LLC (Syracuse, NY) into Concentrix Corporation. Concentrix is located outside Rochester, NY (www.concentrix.com), and employs over 275 people. Concentrix will utilize the funding to continue the marketing and roll-out of its demand generation and renewal marketing services specifically targeted at subscriber-based industries.

Concentrix, founded in 1991, is a knowledge-driven marketing services company that provides demand generation and renewal marketing services through a multi-channel approach (phone, print, web). Critical components to these outsourced solutions include database development and data analytics, campaign planning, customer contact, as well as printing and fulfillment services.

Daniel P. Penberthy, Executive Vice President of Rand, stated, "We were introduced to Concentrix at least two years ago from a fellow SBIC investor, and have watched the Company's management and sales team execute on its business plan, and successfully deploy its new marketing and subscriber retention programs for the newspaper industries. The newspaper industry is in critical need of reducing churn of its subscriber base, and is now focusing on creative acquisition methods, and retention strategies that Concentrix can provide on a turn-key basis. Concentrix will now leverage its success in the newspaper sector into other subscriber based industries such as telecommunications and cable. We are pleased to assist Concentrix in its growth."

Rand invested $246,000 in Kionix, Inc. (Ithaca, NY) (www.kionix.com) through the exercise of warrants in a $7 million funding round that was comprised of previous investors. These funds will provide working capital for increased orders of Kionix's accelerometer from a top laptop manufacturer and a leading cell phone producer. Additionally, the Company has opened new sales offices in Korea and Singapore to better serve its clients.

"We are pleased with the commercial success and rapid adoption of Kionix products in the consumer electronics area. As our largest investment in the SBIC, we are excited about the potential appreciation of this investment," said Allen F. Grum, President of Rand Capital.

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

Contact Information

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