EXHIBIT 99.1

INVESTOR CONTACT:
Deirdre Blackburn
(610) 293-0600

SAFEGUARD ANNOUNCES FIRST QUARTER RESULTS

Wayne, PA, April 29, 2004 – Safeguard Scientifics, Inc. (NYSE: SFE), a leader in developing companies primarily in the information technology and healthcare life sciences areas, today announced its operating results for the first quarter ended March 31, 2004.

“Over the last two years we have substantially completed the turnaround of Safeguard, culminating with the refinancing of our long-term debt in February 2004” said Anthony L. Craig, Safeguard’s President and Chief Executive Officer. “With $194 million of cash on hand at April 27, 2004, we are well positioned to continue the growth of our core strategic companies and to identify others for acquisition.”

Financial Highlights

Safeguard’s consolidated revenue for the first quarter of 2004 was $338.7 million, compared with $370.7 million for the first quarter of 2003 due primarily to a decline in revenues at CompuCom Systems, Inc.

For the quarter ended March 31, 2004, Safeguard reported a net loss of ($4.6) million, or a diluted loss per share of ($0.04), compared with a net loss of ($15.5) million, or a $(0.14) diluted loss per share in the first quarter of 2003.

As of March 31, 2004, Safeguard’s parent company cash balance was $183 million and the market value of its ownership of public company marketable securities was $267

million. Safeguard’s parent company cash balance was $194 million and the market value of its public company marketable securities was $226 million as of April 27, 2004.

Web Cast

Safeguard will host a Web cast on April 29, 2004 at 9:00 a.m. ET to discuss first quarter 2004 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 a company that seeks to create long-term value by taking controlling interests primarily in information technology and healthcare life sciences companies and developing them through superior operations and management support. Safeguard’s existing strategic companies focus on the following vertical markets: financial services, healthcare and pharmaceutical, manufacturing, retail and distribution, and telecommunications. For more information, visit www.safeguard.com.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. These forward-looking statements that could cause actual results to differ materially, include, among others, managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, the ability to execute our strategy, the uncertainty of the future performance of our companies, acquisitions and dispositions of companies, the inability to manage growth, compliance with government regulations and legal liabilities, additional financing requirements, labor disputes, and the effect of economic conditions in the business sectors in which our companies operate, and other uncertainties described in the Company’s filings with the Securities and Exchange Commission. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of

future performance. 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.

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

	March 31,		December 31,
	2004		2003
	(unaudited)
Assets
Current Assets
Cash and cash equivalents, restricted cash and short-term investments - Parent	$	183,477	$	131,065
- Subsidiaries		109,018		94,945
Trading securities		2,297		—
Accounts receivable		173,273		245,504
Inventories		28,524		35,849
Prepaid expenses and other current assets		13,535		11,293
Total current assets		510,124		518,656
Property and equipment, net		34,488		34,007
Ownership interests in and advances to affiliates		49,826		53,119
Intangible assets, net		13,222		14,689
Goodwill		195,999		195,652
Other		23,584		20,208
Total Assets	$	827,243	$	836,331
Liabilities and Shareholders’ Equity
Current convertible subordinated notes	$	17,600	$	—
Other current liabilities		169,747		240,459
Total current liabilities		187,347		240,459
Long-term debt		2,084		2,537
Minority interest		145,338		142,159
Other long-term liabilities		13,277		15,005
Convertible subordinated notes		95,900		200,000
Convertible senior debentures		150,000		—
Total shareholders’ equity		233,297		236,171
Total Liabilities and Shareholders’ Equity	$	827,243	$	836,331

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

	Three Months Ended March 31,
	2004			2003
Revenue	(unaudited)
Product sales	$	223,028		$	260,311
Service sales		115,618			109,489
Other		18			899
Total revenue		338,664			370,699
Operating Expenses
Cost of sales — product		206,814			235,906
Cost of sales — service		76,646			73,226
Selling and service		34,694			34,296
General and administrative		24,309			30,626
Depreciation and amortization		6,843			7,878
Total operating expenses		349,306			381,932
		(10,642	)		(11,233	)
Other income, net		10,479			4,191
Impairment — related party		—			(659	)
Interest Income		635			1,032
Interest and financing expense		(3,298	)		(3,444	)
Loss before income taxes, minority interest and equity loss		(2,826	)		(10,113	)
Income tax expense		(768	)		(1,392	)
Minority interest		1,334			(10	)
Equity loss		(2,374	)		(4,024	)
Net loss	$	(4,634	)	$	(15,539	)
Basic loss per share	$	(0.04	)	$	(0.13	)
Diluted loss per share	$	(0.04	)	$	(0.14	)
Weighted average shares outstanding — basic and diluted		119,315			118,163

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

	Three Months Ended March 31,
	2004			2003
	(unaudited)
Summary
Strategic		(6,023	)		(7,701	)
Non-Strategic		9,172			575
CompuCom		1,458			3,446
Total segments		4,607			(3,680	)
Corporate operations		(8,473	)		(10,467	)
Income tax expense		(768	)		(1,392	)
		(4,634	)		(15,539	)
Strategic
Revenue		31,044			31,695
Net Loss		(6,023	)		(7,701	)
Non-Strategic
Revenue		7,953			8,619
Net income		9,172			575
CompuCom
Revenue		299,656			330,297
Net income		1,458			3,446