Good Start Genetics $18 million Series A financing round co-led by Safeguard Scientifics

Safeguard Scientifics, Inc. (NYSE: SFE), a holding company that builds value in growth-stage life sciences and technology companies, today announced that it has co-led a $18 million Series A financing round for Good Start Genetics, Inc. with OrbiMed Advisors, LLC and SV Life Sciences Advisers LLP. Good Start Genetics, a diagnostic company developing a clinical diagnostic DNA sequencing platform, will use proceeds from the financing to complete the development and launch of the company's pre-pregnancy genetic test, which utilizes an advanced DNA sequencing technology to screen for a panel of genetic disorders, including those recommended by the American Congress of Obstetricians and Gynecologists (ACOG) and the American College of Medical Genetics (ACMG). In addition, proceeds will be used for additional product development, sales and marketing, and other general operation and working capital needs.

“Our product will allow physicians to select from a broad panel of disorders, and customize their test order to meet the individual screening needs of each prospective parent.”

Good Start Genetics' next-generation sequencing technology is designed to deliver a higher detection rate and improved clinical performance compared to currently available screening methods, such as genotyping and single nucleotide polymorphism (SNP) analysis. Higher detection rates provide physicians with more accurate results and more clinically relevant genetic information. The Good Start Genetics test will allow physicians to better identify carriers of heritable genetic disorders, enabling physicians to help prospective parents make more knowledgeable medical decisions. The Company expects to offer its test exclusively through board certified physicians in the U.S. starting in 2011.

"Good Start Genetics joins our list of diagnostic companies that have innovative products/services, experienced and strong management teams, and a rapid path to commercialization," said Gary J. Kurtzman, MD, Managing Director in the Life Sciences Group at Safeguard Scientifics, who joined Good Start Genetics' Board of Directors. "We believe that Good Start Genetics is well-positioned to capitalize on the rapidly growing next-generation DNA sequencing field, starting first with its pre-pregnancy carrier test for heritable genetic disorders and eventually to tests for other genetically-related disorders. We welcome Good Start Genetics to the Safeguard team and look forward to working with management and our syndicate partners to build a great company."

Genetic disorders impose a significant healthcare burden on society, accounting for 10% of pediatric admissions and 20% of infant mortality. Over 6,000 genetic disorders, each of which affect less than 200,000 Americans, combine to afflict approximately 30 million people in the U.S. alone. This high heterogeneity makes diagnosis and treatment difficult and expensive, averaging between $100,000 to several million dollars per child. These costs may be alleviated with pre-pregnancy carrier testing, which may ultimately reduce the cost of healthcare.

"Good Start Genetics is moving beyond the one-size-fits-all genetic testing paradigm because we believe that genetic information is a critical and completely individual aspect of healthcare," said Don Hardison, President, CEO and Director of Good Start Genetics. "Our product will allow physicians to select from a broad panel of disorders, and customize their test order to meet the individual screening needs of each prospective parent."