Bill Clausen Joins LifeFX Networks, Inc. as Chief Marketing Officer; Clausen Brings Valuable eMarketplace Expertise to Leading Internet Company.

Business/Technology Editors

NEWTON, Mass.--(BUSINESS WIRE)--Aug. 2, 2000

LifeFX Networks, Inc., (NASD OTC Bulletin Board:LEFX), a leading developer of photo-realistic, 3-D digital human faces for the Internet, today announced it has named Bill Clausen as its new Chief Marketing Officer. Clausen brings to the company more than sixteen years of experience in communications and Internet marketing. In his new role at LifeFX, Clausen will manage the company's marketing and communications programs, including public relations, advertising, and direct marketing campaigns supporting LifeFX's digital imaging solutions.

"I am very pleased to be joining LifeFX at such an exciting time," said Clausen. "The recent developments in the company's 3-D imaging technology have surpassed the barrier of believability in creating life-like digital people, and will have a profound impact on the way businesses and consumers communicate over the Internet. LifeFX is in a very good position to become the de facto standard in this industry." Clausen joins a management team of recognized Internet and communications leaders including CEO and Co-President Lucie Salhany, formerly of United Paramount Networks, and Chief Technology Officer Dr. Serge Lafontaine, formerly of the University of Auckland.

"Bill's appointment is an integral part of our growth as a corporation," said Lucie Salhany, CEO and co-president of LifeFX. "Bill will spearhead our marketing efforts as we continue to enhance communications technology and bring revolutionary products to market. We are confident the addition of Bill Clausen will help propel our presence in the technology marketplace."

Clausen brings to LifeFX more than sixteen years of experience and achievement in technology and communications marketing. Clausen most recently served as the CEO and founder of ZipDeals.com, a Westboro, Mass. based e-commerce company enhancing the purchasing power of smaller and medium sized companies. Prior to that he held the position of Executive Director of Client Relations for Thunder House Online Marketing Communications, a Cambridge Mass. based subsidiary of McCann-Erickson, where he rebuilt and directed the company's Client Relations department and developed the company's celebrated online branding process. Clausen has also held positions with AT&T where he pioneered the company's interactive relationship marketing program and created the first online advertisement on Hotwired.com.

About LifeFX Networks, Inc.

LifeFX Networks, Inc., a Safeguard Scientifics (NYSE: SFE) partner company, is creating the "face" of the Internet by developing photo-realistic, 3-D digital human faces, or "Stand-Ins," that can interact in real time on virtually any computer with a 28.8 kb/s bandwidth or above. LifeF/X Stand-Ins will be used by Web businesses as lifelike customer-service and sales representatives, guides, teachers and entertainers, while consumer applications include e-mail, instant messaging and chat rooms. The LifeF/X technology was originally developed for professional medical applications by the University of Auckland, with which LifeF/X has an exclusive, worldwide, perpetual license. The LifeF/X technology can accurately render human detail and wrinkling down to the cellular level. LifeF/X holds two patents and has one pending relating to computer graphics.

Statements made in this news release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. LifeF/X Inc. is a development-stage company with no current revenue. LifeF/X Inc.'s future results may differ materially from the results anticipated in these forward-looking statements because of a variety of factors, including the ability of the company to implement its business strategy; the ability of the company to achieve the intended benefits of this strategy; the ability of the company to complete development of its technology; the ability of the company [pilcrow (paragraph sign)] to achieve success in forging strategic relationships; adoption of the technology by major consumer and commercial Web sites; the ability of the company to commercialize the technology before competitors; the ability of the company to retain key employees; and those factors identified in LifeF/X Inc.'s annual report on Form 10-K for the fiscal year ended Dec. 31, 1999, and its quarterly reports on Form 10-Q and subsequent reports filed with the Securities and Exchange Commission.