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Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: John Arnopp who wrote (4431)	10/30/2003 12:20:30 AM
From: dennym7	Respond to of 4467

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.