Safeguard Scientifics (SFES) 8-K SAFEGUARD ANNOUNCES IMPROVED THIRD QUARTER RESULTS Reports Continued Progress on Implementation of Its Strategy

Exhibit 99.1

INVESTOR CONTACT:
Kris Block
(610) 293-0600

SAFEGUARD ANNOUNCES IMPROVED THIRD QUARTER RESULTS
Reports Continued Progress on Implementation of Its Strategy

Wayne, PA, October 29, 2003 –Safeguard Scientifics, Inc. (NYSE: SFE), a leader in building and operating technology companies, today announced its operating results for the third quarter ended September 30, 2003.

“Through our sales of our interests in certain legacy companies in accordance with our strategy, we significantly strengthened our balance sheet, “ said Anthony L. Craig, Safeguard’s President and Chief Executive Officer. “These transactions will further enable us to focus on our existing strategic companies and provide us with the resources to consider other strategic investments.”

Financial Highlights

Safeguard’s consolidated revenue for the third quarter of 2003 was $374 million, compared with $443 million for the third 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 September 30, 2003, Safeguard reported net income of $18.2 million, or diluted income per share of $0.15, compared with a net loss of ($23.3) million, or a ($0.20) diluted loss per share in the third quarter of 2002. For the nine months ended September 30, 2003, Safeguard reported a net loss of ($0.4) million or a diluted loss per share of ($0.02), compared with a net loss of ($97.9) million, or a diluted loss per share of ($0.85) 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 ($119.3) million, or a diluted loss per share of ($1.03). Included in the results for the three months ended September 30, 2003 is $30.0 million of gains related to the sales of the remainder of our shares in Internet Capital Group and the sale of our interest in Kanbay. Included in the results for

the nine months ended September 30, 2003 is $42.6 million of gains related to our sales of DocuCorp, Internet Capital Group, Kanbay and PacWest.

As of September 30, 2003, Safeguard’s parent company cash balance was $157 million and the market value of its ownership of public company marketable securities was $179 million. Safeguard’s parent company cash balance was $144 million and the market value of its public company marketable securities was $188 million as of October 28, 2003.

“We continue to demonstrate real progress by strengthening our strategic companies and exiting our legacy investments,” noted Chris Davis, Managing Director and CFO. “The merger of Mantas and Sotas and our significant investment in the combined company will reinforce their leadership position, fund future growth and increase Safeguard’s ownership of the company.”

Web Cast

Safeguard will host a Web cast on October 29, 2003 at 5:00 p.m. ET to discuss third 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 4:55 p.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.

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

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

			Three Months Ended September 30,						Nine Months Ended September 30,
			2003			2002			2003			2002
Revenue			$	373,740		$	443,056		$	1,163,651		$	1,246,712
Total operating expenses				378,756			450,003			1,189,814			1,269,625
				(5,016	)		(6,947	)		(26,163	)		(22,913	)
Other income (loss), net				31,205			(4,476	)		48,277			(13,404	)
Impairment — related party				—			—			(659	)		—
Interest Income				881			2,022			2,766			6,349
Interest and financing expense				(3,429	)		(7,657	)		(10,350	)		(20,680	)
Income (loss) before income taxes, minority interest, equity loss and cumulative effect of change in accounting principle				23,641			(17,058	)		13,871			(50,648	)
Income tax expense				(1,060	)		(2,168	)		(3,917	)		(5,230	)
Minority interest				(726	)		667			(629	)		(782	)
Equity loss				(3,613	)		(4,691	)		(9,772	)		(41,237	)
Net income (loss) before change in accounting principle				18,242			(23,250	)		(447	)		(97,897	)
Cumulative effect of change in accounting principle (a)				—			—			—			(21,390	)
Net Income (Loss)			$	18,242		$	(23,250	)	$	(447	)	$	(119,287	)
Basic income (loss) per share
	Prior to cumulative effect of change in accounting principle		$	0.15		$	(0.20	)	$	0.00		$	(0.83	)
	Cumulative effect of change in accounting principle			—			—			—			(0.18	)
			$	0.15		$	(0.20	)	$	0.00		$	(1.01	)
Diluted income (loss) per share
	Prior to cumulative effect of change in accounting principle		$	0.15		$	(0.20	)	$	(0.02	)	$	(0.85	)
	Cumulative effect of change in accounting principle			—			—			—			(0.18	)
			$	0.15		$	(0.20	)	$	(0.02	)	$	(1.03	)
Weighted average shares outstanding
		— basic		118,580			117,857			118,365			117,652
		— diluted		120,622			117,857			118,365			117,652

(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.

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

			September 30,		December 31,
			2003		2002
			(unaudited)
Assets
Current Assets
Cash and cash equivalents, restricted cash and short-term investments
		— Parent	$	156,588	$	126,334
		— Subsidiaries		142,021		142,065
	Accounts receivable			135,477		179,668
	Inventories			36,341		30,181
	Trading securities			—		832
	Prepaid expenses and other current assets			12,452		13,045
Total current assets				482,879		492,125
Property and equipment, net				34,674		38,610
Ownership interests in and advances to affiliates				56,271		74,859
Available-for-sale securities				—		4,548
Intangible assets, net				13,023		18,580
Goodwill, net				215,019		206,815
Deferred taxes				215		1,210
Other				22,927		31,919
Total Assets			$	825,008	$	868,666
Liabilities and Shareholders’ Equity
Total current liabilities			$	199,249	$	249,979
Long-term debt				2,771		1,998
Minority interest				137,261		130,384
Other long-term liabilities				14,723		14,032
Convertible subordinated notes (5%, due June 2006)				200,000		200,000
Total shareholders’ equity				271,004		272,273
Total Liabilities and Shareholders’ Equity			$	825,008	$	868,666

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

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

		Three Months Ended September 30,						Nine Months Ended September 30,
		2003			2002			2003			2002
Summary
Strategic Initiative		$	(5,085	)	$	(9,669	)	$	(23,267	)	$	(23,403	)
Legacy			28,963			(8,415	)		42,396			(54,116	)
CompuCom			2,172			5,459			8,995			13,327
Total segments			26,050			(12,625	)		28,124			(64,192	)
Corporate operations			(6,748	)		(8,457	)		(24,654	)		28,475	)
Income tax expense			(1,060	)		(2,168	)		(3,917	)		(5,230	)
			18,242			(23,250	)		(447	)		(97,897	)
Cumulative effect of change in accounting principle			—			—			—			(21,390	)
		$	18,242		$	(23,250	)	$	(447	)	$	(119,287	)
Strategic Initiative
	Revenue	$	31,978		$	14,364		$	90,393		$	35,074
	Net Loss	$	(5,085	)	$	(9,669	)	$	(23,267	)	$	(23,403	)
Legacy
	Revenue	$	11,033		$	14,612		$	34,330		$	44,431
	Net income (loss)	$	28,963		$	(8,415	)	$	42,396		$	(54,116	)
Compucom
	Revenue	$	330,659		$	414,066		$	1,038,684		$	1,167,156
	Net income	$	2,172		$	5,459		$	8,995		$	13,327