W. CONSHOHOCKEN, Penna. - December 6, 2005 - Safeguard Scientifics, Inc. (NYSE: SFE) announced today that it had completed the acquisition of Acsis, Inc., of Marlton, NJ, for approximately $26 million in cash.

Acsis, headquartered in Marlton, NJ, provides enterprise data collection solutions to global companies. Its software enables manufacturers to automate plant floor/warehouse operations and take advantage of emerging technologies, including radio frequency identification (RFID). Manufacturers leverage Acsis solutions to improve visibility of goods throughout their supply chains, ultimately resulting in increased revenues and reduced costs. Acsis generated revenues of more than $20 million in 2004, and in the first nine months of 2005 had revenues of approximately $17 million and employs approximately 90 people.

Steven Selfridge, President and Chief Executive Officer of Acsis, said, “We are dedicated to meeting the growing demand for device integration and enterprise data collection. With Safeguard as our partner, Acsis will be able to accelerate the growth of our business.”

Spending on enterprise data collection software and services has been growing significantly and Acsis believes it currently exceeds $700 million annually. Recent mandates from major national retailers as well as government agencies have prompted manufacturers to upgrade their existing data collection infrastructure with RFID technology.

“Acsis is a strong competitor with deep domain expertise and a high quality customer base of Tier One global manufacturers,” said Peter J. Boni, President and Chief Executive Officer of Safeguard. “Today, Acsis solutions address major trends that are driving significant growth opportunities in its business. These trends include business process automation, compliance with regulations such as the FDA mandated tracking of food and drug products, and cost containment. We look forward to helping Acsis expand its market presence and build a solid foundation for continued growth.”

As a result of the transaction, Safeguard owns approximately 94% of Acsis’ outstanding stock, with the rest owned by the management of Acsis. Safeguard said that Acsis’ operating results would not affect Safeguard’s 2005 financial results in a material way.

For further information on this transaction you can go to the website of Safeguard Scientifics (www.safeguard.com).