Rand Capital Declares a Total Fourth Quarter Cash Dividend of $0.38 per Share; Increases Regular Quarterly Cash Dividend by 33% to $0.20 per Share

• Increased regular quarterly cash dividend by $0.05 to $0.20 per share
• Supplemental cash dividend in fourth quarter of $0.18 per share
• Total cash dividend distribution in 2022 up nearly 90% over 2021 to $0.83 per share

Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing for lower middle market companies, announced today that its Board of Directors declared a total quarterly cash dividend of $0.38 per share comprised of a $0.20 per share regular quarterly cash dividend, which was increased by $0.05 per share, and an $0.18 per share supplemental cash dividend. The dividend will be distributed on or about Friday, December 30, 2022, to shareholders of record as of Monday, December 19, 2022. At September 30, 2022, Rand had approximately 2.6 million shares outstanding.

Daniel P. Penberthy, President and CEO, commented, “We continue to execute on our strategy to build a portfolio that drives growth in investment income and has enabled total dividend distributions of $0.83 in cash per share for 2022. This represents an increase of nearly 90% over our 2021 distributions. Importantly, our strong performance supports a 33% increase of our regular quarterly cash dividend to $0.20 per share, further demonstrating our ability to deliver on our goals. These are exciting times at Rand as we have the liquidity to continue to expand our portfolio, build greater earnings power while we fund lower middle market companies so they too may achieve their growth objectives.”

Additional Information Regarding Dividend Distributions

The amount and timing of dividend distributions, including future dividend distributions, are subject to the discretion of Rand’s Board of Directors. When declaring distributions, Rand’s Board of Directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year.

The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

ABOUT RAND CAPITAL

Rand Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests in early to later stage businesses that have sustainable, differentiated and market-proven products, revenue of more than $2 million and a path to free cash flow or up to $5 million in EBITDA. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: https://www.randcapital.com/.

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