Safeguard Scientifics (SFES) 8-K SAFEGUARD ANNOUNCES SECOND QUARTER RESULTS and Continued Progress in its Operating Company Evolution

Exhibit 99.1

SAFEGUARD MEDIA CONTACT:	INVESTOR CONTACT:
Ed Callahan	Kris Block
(610) 293-0600	(610) 293-0600

SAFEGUARD ANNOUNCES SECOND QUARTER RESULTS
and Continued Progress in its Operating Company Evolution

Wayne, PA, July 30, 2003 –Safeguard Scientifics, Inc. (NYSE: SFE), a leader in building and operating technology companies, today announced its operating results for the second quarter ended June 30, 2003.

“We continued to make progress implementing our strategy of evolving to an operating company during the second quarter,” said Anthony L. Craig, Safeguard’s President and Chief Executive Officer. “We are encouraged with our pace of monetization activities as we continue to nurture our strategic initiatives.”

Financial Highlights

Safeguard’s consolidated revenue for the second quarter of 2003 was $419 million, compared with $453 million for the second quarter of 2002. The decline is due to a decrease in revenue at CompuCom, partially offset by the inclusion of Alliance Consulting’s revenue subsequent to the acquisition in 2002.

For the quarter ended June 30, 2003, Safeguard reported a net loss of ($3.2) million, or a diluted loss per share of ($0.03), compared with a net loss of ($33.9) million, or a ($0.29) diluted loss per share in the second quarter of 2002. For the six months ended June 30, 2003, Safeguard reported a net loss of ($18.7) million or a diluted loss per share of ($0.17), compared with a net loss of ($74.6) million, or a diluted loss per share of ($0.65) in the same period of 2002 (excluding the cumulative effect of change in accounting principle). Including the cumulative change in accounting principle, the loss in 2002 was ($96.0) million, or a diluted loss per share of ($0.83). Included in the results for the three and six months ended June 30, 2003 is $12.6 million of gains related to the sales of three legacy companies, including sales of our shares of Pac-West and DocuCorp and the sale of a portion of our shares in Internet Capital Group.

800 The Safeguard Building • 435 Devon Park Drive • Wayne, PA 19087-1945
Phone (610) 293-0600 • Fax (610) 293-0601 • Toll Free (877) 506-7371
http://www.safeguard.com

As of June 30, 2003, Safeguard’s parent company cash balance was $119 million and the market value of its ownership of public company marketable securities was $220 million. Safeguard’s parent company cash balance was $133 million and the market value of its public company marketable securities was $232 million as of July 29, 2003.

“We strengthened our balance sheet, demonstrated our ability to realize value from our legacy companies and progressed in our transition to our operating company model,” noted Chris Davis, Managing Director and CFO. “It was a solid quarter with measurable progress.”

Web Cast
Safeguard will host a Web cast on July 31, 2003 at 9:00 a.m. ET to discuss second quarter 2003 results. You can access the Web cast, which will be accompanied by slides, at the Safeguard Web site at www.safeguard.com. The conference call is also available via a toll-free number. For listen only access, please call the toll-free number 877-818-2521 by 8:55 a.m.

About Safeguard(www.safeguard.com)
Safeguard Scientifics, Inc. (NYSE: SFE) is an operating company creating long-term value by taking controlling interest in and developing its companies through superior operations and management. Safeguard operates businesses that provide business decision and life science software-based product and service solutions.

Forward-Looking Statements
The statements contained in this press release and attachments that are not historical facts are forward-looking statements that involve certain risks and uncertainties, including risks associated with the uncertainty of future performance of our companies, acquisitions of additional companies and dispositions of companies, additional financing requirements, the effect of economic conditions in the business sectors in which our companies operate, our ability to execute our business strategy and other uncertainties described in the Company’s filings with the Securities and Exchange Commission. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.

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NOTE TO EDITORS: Safeguard is a service mark of Safeguard Scientifics, Inc.

800 The Safeguard Building • 435 Devon Park Drive • Wayne, PA 19087-1945
Phone (610) 293-0600 • Fax (610) 293-0601 • Toll Free (877) 506-7371
http://www.safeguard.com

Safeguard Scientifics, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands except per share amounts)

		Three Months Ended June 30,						Six Months Ended June 30,
		2003			2002			2003			2002
Revenue		$	419,212		$	452,852		$	789,911		$	803,656
Total operating expenses			429,126			459,922			811,058			819,622
			(9,914	)		(7,070	)		(21,147	)		(15,966	)
Other income (loss), net			12,881			(3,397	)		17,072			(8,928	)
Impairment — related party			—			—			(659	)		—
Interest Income			853			2,307			1,885			4,327
Interest and financing expense			(3,477	)		(5,558	)		(6,921	)		(13,023	)
Income (loss) before income taxes, minority interest, equity loss and cumulative effect of change in accounting principle			343			(13,718	)		(9,770	)		(33,590	)
Income tax expense			(1,465	)		(1,944	)		(2,857	)		(3,062	)
Minority interest			107			(608	)		97			(1,449	)
Equity loss			(2,135	)		(17,639	)		(6,159	)		(36,546	)
Net loss before cumulative effect of change in accounting principle			(3,150	)		(33,909	)		(18,689	)		(74,647	)
Cumulative effect of change in accounting principle (a)			—			—			—			(21,390	)
Net loss		$	(3,150	)	$	(33,909	)	$	(18,689	)	$	(96,037	)
Basic loss per share
	Prior to cumulative effect of change in accounting principle	$	(0.03	)	$	(0.29	)	$	(0.16	)	$	(0.64	)
	Cumulative effect of change in accounting principle		—			—			—			(0.18	)
		$	(0.03	)	$	(0.29	)	$	(0.16	)	$	(0.82	)
Diluted loss per share
	Prior to cumulative effect of change in accounting principle	$	(0.03	)	$	(0.29	)	$	(0.17	)	$	(0.65	)
	Cumulative effect of change in accounting principle		—			—			—			(0.18	)
		$	(0.03	)	$	(0.29	)	$	(0.17	)	$	(0.83	)
Weighted average shares outstanding — basic and diluted			118,348			117,572			118,256			117,548

(a) We adopted the provisions of SFAS 142, “Goodwill and Other Intangible Assets” which required that transitional impairment losses for goodwill, and negative goodwill be included as a cumulative change as of January 1, 2002.

800 The Safeguard Building • 435 Devon Park Drive • Wayne, PA 19087-1945
Phone (610) 293-0600 • Fax (610) 293-0601 • Toll Free (877) 506-7371
http://www.safeguard.com

Safeguard Scientifics, Inc.
Condensed Consolidated Balance Sheets
(in thousands)

	June 30,		December 31,
	2003		2002
	(unaudited)
Assets
Current Assets
Cash, restricted cash and short-term investments — Parent	$	119,291	$	126,334
Cash and cash equivalents — Subsidiaries		136,093		142,065
Accounts receivable		183,764		179,668
Inventories		29,312		30,181
Trading securities		1,642		832
Available-for-sale securities		11,813		—
Prepaid expenses and other current assets		13,764		13,045
Total current assets		495,679		492,125
Property and equipment, net		36,289		38,610
Ownership interests in and advances to affiliates		66,069		74,859
Available-for-sale securities		—		4,548
Intangible assets, net		14,554		18,580
Goodwill, net		213,672		206,815
Deferred taxes		496		1,210
Other		27,257		31,919
Total Assets	$	854,016	$	868,666
Liabilities and Shareholders’ Equity
Total current liabilities	$	238,013	$	249,979
Long-term debt		1,976		1,998
Minority interest		135,961		130,384
Other long-term liabilities		14,199		14,032
Convertible subordinated notes (5%, due June 2006)		200,000		200,000
Total shareholders’ equity		263,867		272,273
Total Liabilities and Shareholders’ Equity	$	854,016	$	868,666

Certain prior year amounts have been reclassified to conform to the current year presentation.

800 The Safeguard Building • 435 Devon Park Drive • Wayne, PA 19087-1945
Phone (610) 293-0600 • Fax (610) 293-0601 • Toll Free (877) 506-7371
http://www.safeguard.com

Safeguard Scientifics, Inc.
Results of Segment Operations
(unaudited, in thousands)

		Three Months Ended June 30,						Six Months Ended June 30,
		2003			2002			2003			2002
Summary
Strategic Initiative		$	(10,481	)	$	(6,982	)	$	(18,182	)	$	(13,734	)
Legacy			12,858			(20,953	)		13,433			(45,701	)
CompuCom			3,377			4,987			6,823			7,868
Total segments			5,754			(22,948	)		2,074			(51,567	)
Corporate operations			(7,439	)		(9,017	)		(17,906	)		(20,018	)
Income tax expense			(1,465	)		(1,944	)		(2,857	)		(3,062	)
			(3,150	)		(33,909	)		(18,689	)		(74,647	)
Cumulative effect of change in accounting principle			—			—			—			(21,390	)
		$	(3,150	)	$	(33,909	)	$	(18,689	)	$	(96,037	)
Strategic Initiative
	Revenue		26,720			11,999			58,415			20,710
	Net Loss		(10,481	)		(6,982	)		(18,182	)		(13,734	)
Legacy
	Revenue		14,678			14,719			23,297			29,819
	Net income (loss)		12,858			(20,953	)		13,433			(45,701	)
Compucom
	Revenue		377,728			426,142			708,025			753,090
	Net income		3,377			4,987			6,823			7,868

800 The Safeguard Building • 435 Devon Park Drive • Wayne, PA 19087-1945
Phone (610) 293-0600 • Fax (610) 293-0601 • Toll Free (877) 506-7371
http://www.safeguard.com