(Source: Business Wire)Safeguard Scientifics, Inc. (NYSE:SFE), a holding company that builds value in growth-stage life sciences and technology companies, today announced that it has sold an additional 2.4 million shares of its position in Clarient, Inc. (Nasdaq: CLRT) through a Clarient shelf registration on Form S-3 that was declared effective by the Securities and Exchange Commission on August 20, 2009. Underwriters for the offering -- Stephens Inc., Robert W. Baird & Co., Stifel, Nicolaus & Company and Boenning & Scattergood -- exercised an option to purchase the additional shares.

To date, Safeguard has sold approximately 18.4 million shares of Clarient common stock and now holds 28.1 million shares and 2.75 million warrants at various strike prices, with a combined market value of $131 million as of yesterday's close. Proceeds from the exercise of the overallotment option were approximately $8 million, net of underwriter commissions, bringing the total from the offering to approximately $61 million. Safeguard now holds 28.5% of Clarient's outstanding common stock on an as-converted basis.

"These transactions continue to transform and enhance Safeguard's balance sheet," said Peter J. Boni, President and CEO of Safeguard. "The $61 million infusion of cash from the sale of our Clarient shares improves our debt to equity ratio from 1:1 from the beginning of the year to 1:3 today. Balance sheet strength and prudent use of cash remain Safeguard's top priorities for 2009. Our goal is to pay or repurchase our convertible debt obligations on or before the Q1 2011 put date of such converts. As a result of this latest transaction, Safeguard has more than $130 million of cash, excluding cash held in escrow, to support exiting portfolio companies and invest in new, exciting, high-potential growth life sciences and technology companies."

Copies of the prospectus supplement and the accompanying prospectus relating to these securities may be obtained from Stephens Inc., Attention: Syndicate Department, 111 Center Street, Little Rock, AR 72201 (Telephone No. (800) 643-9691).

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Safeguard Scientifics

Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. (NYSE: SFE) provides growth capital for entrepreneurial and innovative life sciences and technology companies. Safeguard targets life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine and Specialty Pharmaceuticals, and technology companies in Internet / New Media, Financial Services IT and Healthcare IT with capital requirements of up to $25 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. www.safeguard.com

Forward-looking 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. The risks and uncertainties 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, 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 news release.

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