Acsis Finishes 2006 with Solid Results and Momentum for 2007.

Strong Fourth Quarter Bookings, Growing Customer Demand, Deepening Partnership with SAP and New Management Team Sets Stage for Growth in 2007

MARLTON, N.J. -- Acsis, Inc., a leader in connecting people, devices and supply chains with enterprise business systems, today announced that it closed out 2006 with the strongest bookings quarter of the year. Increased demand for new products, a focus on sales execution and a deepening partnership with SAP AG will position Acsis for continued growth in 2007.

The fourth quarter of 2006 was an especially productive period for Acsis as the strongest software license bookings for the year were recorded. Demand for Acsis Line Manager, a scalable "plug and play" appliance solution designed to automate warehouse and manufacturing operations released in 2006, was especially strong with over seventy stations sold. Acsis also saw an increase in overall solution size as manufacturers increased investments in shop floor automation and integration solutions. Two of the largest new business deals in the fourth quarter were:

* A processed foods manufacturer purchased an RFID enabled packaging and distribution solution

* The personal care division of a Fortune 500 global health and hygiene manufacturer purchased the initial phase of a multi-phased RFID project for supply chain visibility

Throughout 2006, Acsis demonstrated success across its entire business as it executed against its stated 2006 objectives:

Revenue growth through new customer acquisition

The Acsis customer-base increased 17 percent, boosting its count to 107 active clients including leaders in Manufacturing, CPG, Life Sciences and Chemical industries. Globally this brings the total number of Acsis implementations to more than 650 in 28 countries.

Focus product development on emerging software markets

The Acsis product portfolio was re-architected to take advantage of the latest architecture and products from SAP for manufacturing and the supply chain, to provide a revolutionary shop-floor application platform, and to provide a set of industry solutions to meet customer needs for the present and the future. Acsis saw strong demand for these new products and solutions in 2006 and enters 2007 with significant momentum.

Expand strategic partnerships

Acsis has deepened its partnership with SAP by achieving "Powered by SAP NetWeaver[R]" status for Acsis Plant Manager and the closing of additional accounts jointly with SAP to deliver RFID related solutions. In addition, a new state-of-the-art solution center was opened to demonstrate how cutting-edge technology from Acsis and SAP for manufacturing and RFID can enable customers to streamline operations and gain unprecedented visibility to supply-chain information.

Build a world-class management team

Throughout the course of the year, Acsis brought in a world-class management team consisting of Larry DeAngelis, executive vice president of sales, Stewart McCutcheon, chief technology officer, Andre Pino, chief marketing officer and Tonya Zweier, chief financial officer. Together with CEO, Steven Selfridge, this team brings a wealth of industry, functional and corporate experience to develop and lead the execution of Acsis growth strategy.

"We are very proud of the Acsis team accomplishments this past year as well as the continued success of our customers," said Steven Selfridge, Acsis CEO. "In 2006 we established a great product portfolio, raised $10.5M in growth financing, hired a strong management team and increased our market recognition. We look forward to building upon this momentum in 2007 as we focus on execution, top-line revenue growth, utilization of off-shore resources to reduce costs and time-to-market, and maximizing our strategic partnerships."

About Acsis

Acsis, Inc. was founded in 1996 and is headquartered in Marlton, NJ. Acsis is a global enterprise software and services provider that automates manufacturing and supply chain processes enabling higher throughput at lower costs. With implementations in 28 countries Acsis provides a single platform that connects people, devices, and supply chains, enabling adaptive manufacturing and supply chain operations. Acsis is an SAP Services Partner, SAP Technology Partner and charter member of SAP's Enterprise Services Community. Acsis also maintains partnerships with major service and hardware providers. Acsis is an EPCglobal member and early adopter of RFID technologies. Acsis is a partner company of Safeguard Scientifics, Inc. (NYSE: SFE). Additional information can be found at www.acsisinc.com.

About Safeguard

Safeguard Scientifics, Inc. (NYSE: SFE) builds value in high-growth, revenue-stage information technology and life sciences businesses. Safeguard provides growth capital as well as a range of strategic, operational and management resources to our partner companies. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For additional information, visit www.safeguard.com.

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