SafeGuard Deregisters Common Stock.

ALISO VIEJO, Calif. -- SafeGuard Health Enterprises, Inc. (OTC Bulletin Board: SFGD) today announced that pursuant to the previously announced affirmative vote of its stockholders to effect a 1-for-1,500 reverse stock split, the Company has certified to the Securities and Exchange Commission ("SEC") that there now exists less than 300 common stockholders of the Company and accordingly has today filed a Form 15 with the SEC to deregister its common stock and suspend its reporting obligations under the Securities Exchange Act of 1934 (the "Exchange Act"). Upon the filing of the Form 15 with the SEC, the Company's common stock will be delisted and will no longer trade on the NASDAQ Over-The-Counter Bulletin Board ("OTCBB"). The Company expects that the deregistration from the Exchange Act will become effective within 90 days of the filing of the Form 15.

The Company anticipates that, after the filing of the Form 15 to deregister and the delisting from the OTCBB, its common stock will be quoted on the "Pink Sheets" (http://www.pinksheets.com) an electronic quotation service for over-the-counter securities, but only to the extent that market makers decide to make a market in the Company's shares. While the Company currently intends to provide market makers with information necessary for the Company's shares to be quoted on the "Pink Sheets," there can be no assurance that market makers will quote the Company's shares or that an active trading market will ever develop on the "Pink Sheets." There is generally less liquidity and greater stock price volatility on the "Pink Sheets" as compared to the OTCBB.

SafeGuard Health Enterprises, Inc. is committed to the dental and vision business, with nearly 30 years of experience. The Company provides dental and vision HMO, PPO, indemnity and ASO products to approximately 1.5 million members primarily in California, Florida and Texas. For more information, visit SafeGuard's web site at www.safeguard.net.

SafeGuard notes that statements contained in this news release that are not based on historical facts are forward-looking statements, and as such, are subject to uncertainties and risks that could cause actual results to differ materially from those projected or implied by such statements. These risks, contingencies and uncertainties, many of which are beyond SafeGuard's control, include those risk factors that are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2003, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, and the Company's Current Reports on Form 8-K, all on file with the U.S. Securities and Exchange Commission.