Exhibit 99.1

    RAND CAPITAL ANNOUNCES FIRST QUARTER INCREASE IN VALUE AND ELECTION OF
                            DIRECTORS AND OFFICERS

    BUFFALO, N.Y., April 28 /PRNewswire-FirstCall/ -- Rand Capital Corporation
(http://www.randcapital.com) (Nasdaq: RAND) announced that its net asset value
for the quarter ended March 31, 2005 is $1.60 per share, an increase of $0.02.

    During the quarter, Rand added follow-on investments in two of its portfolio
companies. Ultra-Scan Corporation (Amherst, NY) (http://www.ultra-scan.com)
received $200,000 from Rand in the form of an equity and debt investment, as
part of a larger financing round. Ultra-Scan Corporation is an identity
management solutions provider serving the healthcare, government and
transportation security, and financial markets. Ultra-Scan's breakthrough
biometric technology is distinguished from other authentication systems in three
key areas: enrollability -- the ability to read and enroll virtually any
fingerprint; usability -- the robustness to operate indoors or outdoors in
real-world environments with quick throughput processing; and accuracy -- the
ability to perform faster and more accurate matches than any other biometric
technology.

    Rand completed the second phase of its $600,000 investment commitment in
Innov-X Systems, Inc. (Woburn, MA) (http://www.innovxsys.com) in the form of
$250,000 Series B Subordinated term note. In a separate transaction, Rand
purchased 3,500 shares of Series A Convertible Preferred Innov-X stock at a cost
of $35,000. Innov-X Systems manufactures handheld analyzers, utilizing X-ray
fluorescence (XRF) technology, operating under a iPAQ, Windows CE system, to
produce a device which can efficiently and accurately provide quick, onsite
alloy analysis and "laboratory quality" metals testing of a wide variety of
sample types.

    Rand has also increased its valuation of MINRAD International, Inc.
(Buffalo, NY) (http://www.minrad.com) to reflect the recent Private Placement of
its securities as disclosed in its Proxy Statement and its public listing.

    At Rand's Annual Meeting of Shareholders; the following Directors were
re-elected for another term: Allen F. Grum, Luiz F. Kahl, Erland E. Kailbourne,
Ross B. Kenzie, Willis S. McLeese, Reginald B. Newman, II, and Jayne K. Rand.
Rand's Board of Directors also re-appointed Reginald B. Newman, II as Chairman
of the Board.

    During the quarter, Rand did not repurchase any shares under its previously
issued stock buy back program.



    This release may contain forward-looking statements and reports the
consolidated operations of Rand Capital Corporation and Rand Capital SBIC, L.P;
all statements are pursuant to the Safe Harbor Provisions of the 1995 Private
Securities Litigation Reform Act; and are subject to uncertainties in predicting
future results. These statements reflect the Corporation's current beliefs, and
many factors could cause actual results to differ materially from this release.
See Rand's Form 10-Q's filed with the Securities and Exchange Commission for a
detailed discussion of the risks associated with the Corporation's business,
including but not limited to, risks associated with venture capital investing
and other factors that could affect actual results. Except as required by
Federal securities laws, Rand Capital Corporation and Rand Capital SBIC, L.P.
undertakes no obligation to update or revise forward- looking statements for new
events and uncertainties.

    Rand Capital Corporation is a publicly held venture capital company,
headquartered in Buffalo, New York, registered on the NASDAQ Small Cap Market
under the symbol "RAND". Rand's investment strategy is to provide venture
capital and expansion capital to emerging businesses, primarily in Upstate New
York and the Northeast, through Rand, and its SBIC subsidiary.

SOURCE  Rand Capital Corporation
    -0-                             04/28/2005
    /CONTACT:  Allen F. Grum, +1-716-853-0802 for Rand Capital Corporation/
    /Web site:  http://www.randcapital.com /