Safeguard Scientifics Announces Effective Date of Stock Splits to Effectuate the Going Dark Transaction and New Chief Executive Officer and Chief Financial Officer - Seite 2

If a shareholder holds fewer than 100 shares of common stock through a broker, bank or other nominee, then such shareholder is considered the beneficial owner of those shares, and the broker, bank or other nominee is considered the shareholder of record with respect to those shares. The Cash Payment for fractional shares will be available only to record holders. Pursuant to the SEC rules and regulations, the Company intends to treat each bank, broker or other nominee as one shareholder of record. These banks, brokers and other nominees may have different procedures for processing the stock splits. It is possible that the bank, broker or other nominee also holds shares for other beneficial owners of common stock and that it may hold at least 100 shares, or more than 100 shares, of common stock in the aggregate. Therefore, depending upon their procedures, such bank, broker or other nominee may not be obligated to treat the reverse stock split or the forward stock split as affecting beneficial owners’ shares held through such broker, bank or other nominee. If a shareholder holds an account with fewer than 100 shares of common stock through a broker, bank or other nominee, the Company encourages such shareholder to contact such holder’s bank, broker or other nominee for information on how the stock splits may affect any shares of the Company’s common stock held in such account.

Safeguard’s transfer agent, Computershare, which is also acting as the exchange agent for the stock splits, will provide instructions to shareholders regarding the process for exchanging share certificates (if any).

The Company expects that the stock splits would reduce the number of record holders of the Company’s common stock below 300, which is the level at or above which the Company is required to file reports with the SEC under the Exchange Act, and, as previously announced, following the effectiveness of the stock splits, the Company intends to file a Form 25 (Notification of Removal From Listing and/or Registration under Section 12(b) of the Exchange Act) with the Securities and Exchange Commission (the “SEC”). The Company expects that the delisting will occur ten days after the filing of Form 25, at which point, the Company intends to file a Form 15 with the SEC certifying that it has less than 300 shareholders of record, which will terminate the registration of the Company’s common stock under Section 12(g) of the Exchange Act. Following the delisting of the Company’s common stock from trading on Nasdaq, any trading in the Company’s common stock would only occur in privately negotiated sales and potentially on an over-the-counter market. The Company is seeking to have its common stock quoted on a market operated by OTC Markets Group Inc. There is no guarantee, however, that a broker will make a market in the common stock.