Safeguard Scientifics Announces Share Repurchase Program and Proposes Reverse Stock Split

Board of Directors Approves Share Repurchase Program; Company to Seek Shareholder Authorization for Reverse Stock Split Wayne, PA, May 7, 2008 "(pressreleasepoint)" -- Safeguard Scientifics, Inc. ( NYSE: SFE ), a holding company that builds value in growth-stage technology and life sciences companies, today announced that its Board of Directors has authorized a share repurchase program and intends to seek shareholder authorization for a reverse stock split. The Board of Directors has authorized Safeguard, from time to time and depending on market conditions, to repurchase shares of its outstanding common stock, with up to an aggregate value of $10 million. These repurchases will be made in open market or privately negotiated transactions in compliance with Securities and Exchange Commission and other applicable legal requirements. The manner, timing and amount of any purchases will be determined by Safeguard based upon an evaluation of market conditions, stock price and other factors. The Board’s authorization does not obligate Safeguard to acquire any particular amount of common stock and may be modified or suspended at any time at Safeguard’s discretion. Safeguard also announced that its Board of Directors has authorized the company to submit a proposal to its shareholders at its 2008 annual meeting seeking authorization to effect a reverse split of the company’s common stock. Further details regarding such a proposal will be forthcoming in the Company’s proxy materials for such a meeting. On May 6, 2008, the Company had approximately 121.5 million shares of common stock outstanding. Peter J. Boni, President and Chief Executive Officer of Safeguard, said, “With the closing of the bundled sale which we also announced today, we have been evaluating potential uses of cash to complement our investment in high-growth partner companies in the life science and technology arena. This share repurchase program demonstrates the company’s confidence in our long-term strategy to deploy capital, build value in our partner companies, and realize that value through strategically-timed exits. In addition, we believe that a reverse stock split may also make our stock more appealing to a broader group of institutional shareholders.” About Safeguard Scientifics Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. ( NYSE: SFE ) provides growth capital for entrepreneurial and innovative technology and life sciences companies. Safeguard targets technology companies in Software as a Service (SaaS) / Internet-based Businesses, Technology-Enabled Services and Vertical Software Solutions, and life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices and Specialty Pharmaceuticals with capital requirements between $5 and $50 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. www.safeguard.com