BUFFALO, N.Y., Nov. 6, 2009 (GLOBE NEWSWIRE) -- Rand Capital Corporation (Nasdaq:RAND) ("Rand"), a business development company (BDC) that provides capital and managerial expertise for small to medium-sized private companies, announced that it has invested $250,000 in Rheonix, Inc. (www.rheonix.com), based in Ithaca, New York.

Rheonix began operations and was later spun out of the microfluidic division of Kionix, Inc. (www.kionix.com), also headquartered in Ithaca, New York. Kionix is a global leader in the design and fabrication of high-performance, silicon-micromachined, MEMS inertial sensors.

Rheonix's novel CARD(TM) (Chemistry And Reagent Device) microfluidic technology, based on technology developed at Cornell University, provides a fully automated "point-of-care" (POC) or "point-of-use" (POU) diagnostic platform with applications in a broad spectrum of markets including human and veterinary in vitro diagnostics, biopharmaceutical manufacturing, food and beverage manufacturing, food/water safety testing, and homeland security/defense applications. The fully-integrated system permits the completely-automated analysis of "raw" samples, with all preparative, analytical, and readout functions performed on the CARD(TM), with virtually no intervention required by the analyst. Coupled with a simple computer interface that controls all functions on the CARD(TM), this powerful diagnostic platform finally provides a revolutionary means for individuals of varying technical expertise, including unskilled analysts, to easily perform rapid POC and POU testing. Rheonix also maintains a separate Corporate Development and Scientific Affairs facility in Grand Island, New York, following their 2008 acquisition of Innovative Biotechnologies International, Inc. ("IBI").

Also participating with Rand in the financing round were Cayuga Venture Fund III, L.P. (Ithaca, NY), Onondaga Venture Capital Fund, LLC (Syracuse, NY) and angel investors.

Daniel Penberthy, Executive Vice-President of Rand Capital, stated, "We have watched both Rheonix and IBI develop their technologies over the last several years, and now believe the Company is positioned with a device that will be accepted into the marketplace. The development of the Company to this stage is a credit to both the strength of its management team, and the quality of its intellectual property. We welcome the chance to work with the Company and make further investment as it continues to achieve key business milestones."

Anthony Eisenhut, President and CEO of Rheonix, Inc., stated that "Rheonix is bringing to market a robust, affordable molecular diagnostic platform that allows for multi-step central laboratory assays to be completed entirely on a disposable plastic card.