Regenerative Medicine Company Garnet Biotherapeutics Raises $10.4 Million

MALVERN, PA, Feb 03 (MARKET WIRE) --
Garnet Biotherapeutics, a regenerative medicine company developing
products that speed healing and reduce scarring after surgery or
dermatologic procedures, today announced the close of a $10.4 million
round led by SCP Vitalife Partners II, L.P. Garnet will use the proceeds
to fund Phase II clinical trials of its proprietary human adult bone
marrow-derived cells, as well as manufacturing and development. Safeguard
Scientifics, Inc. and Alliance Technology Ventures also participated in
the financing.

"This agreement provides us with financial resources to realize the
potential of our cell-based therapy platform through a clear and defined
clinical strategy. We view the participation of these stellar investors
as a vote of confidence in the value of our technology and the commercial
prospects of our product portfolio," said Gerri Henwood, CEO of Garnet
Biotherapeutics. "One of the key challenges for cell-based therapy
companies historically has been to scale-up and manufacture these products
on a commercially viable basis. I am proud to say that our team has solved
this problem and, at the appropriate time, we will be able to deliver
these therapies efficiently and cost-effectively."

Garnet Biotherapeutics has identified the first in a series of cell
products which it calls GBT 009, capable of reducing inflammation and
promoting healing. In addition, the company has developed proprietary
scalable cell manufacturing technology that has largely solved the
challenge of commercial manufacturing scale up of patient doses from a
single donor source.

"We're confident in the potential advantages of Garnet's emerging
regenerative medicine technology, their strong clinical strategy and
proven manufacturing capabilities," said Wayne B. Weisman, Managing
Director at SCP Vitalife Partners. "The financing will allow them to
fully capitalize on these strengths."

The company is initially developing its cell-based therapy for cosmetic
and dermatologic applications where accelerated healing and reduced
scarring are desirable, as plastic surgeons often cite scarring as a top
patient concern in cosmetic surgical procedures. Cosmetic applications
such as breast augmentation, abdominoplasty and facelifts represent a
market opportunity of more than $1 billion worldwide. Garnet
Biotherapeutics believes that the cell-based therapy may also be
applicable for treatment of burns, auto-immune disorders such as
psoriasis, and in other conditions where inflammation or scar formation
plays an important role in disease pathology.

With this investment, Mr. Weisman, along with Gary J. Kurtzman, MD, Vice
President and Managing Director in Safeguard's Life Sciences Group and Jim
P. O'Connell, Senior Associate and Kauffman Fellow in Safeguard's Life
Sciences Group will join Ms. Henwood on Garnet Biotherapeutics' Board of
Directors.

About Garnet Biotherapeutics

Garnet Biotherapeutics is a clinical stage regenerative medicine company
based in Malvern, PA. Garnet cell-product GBT 009, when used topically on
the skin or administered internally, releases anti-inflammatory and
pro-healing factors that accelerate healing and reduce scarring. The
company is currently targeting dermatology applications, with plans to
expand into other reconstructive and cosmetic procedures as well as
looking at ways to advance the technology for use in orthopedic and
cardiovascular surgical procedures, burn treatment, chronic wound healing
and auto-immune disorders. For more information, please visit
www.garnetbio.com.

About SCP Vitalife Partners II

SCP Vitalife Partners II, L.P., is a venture capital fund which invests in
life science companies. The Fund, managed by SCP Vitalife Partners,
focuses on Israel- and U.S.-based firms where the opportunity provides
attractive proprietary growth potential, has requisite management talent
and appropriate valuation. Like its predecessor fund, Vitalife Life
Sciences Fund, L.P., SCP Vitalife II invests primarily in companies with
breakthrough technologies for medical devices, diagnostics, imaging, drug
delivery, specialty pharmaceuticals, biomaterials, and supply chain
management. In addition to the traditional venture capital role of
assisting and advising its companies, SCP Vitalife Partners has a strong
track record of using its senior level relationships at industry companies
to achieve strategic partnership deals and liquidity opportunities for its
portfolio companies. SCP Vitalife Partners has offices in Tel Aviv and
Philadelphia. For more information, please visit www.scpvitalife.com

About Safeguard Scientifics

Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc.
(NYSE: SFE) provides growth capital for entrepreneurial and innovative
technology and life sciences companies. Safeguard targets technology
companies in Software as a Service (SaaS) / Internet-based Businesses,
Technology-Enabled Services and Vertical Software Solutions, and life
sciences companies in Molecular and Point-of-Care Diagnostics, Medical
Devices and Specialty Pharmaceuticals with capital requirements between $5
and $50 million. Safeguard participates in expansion financings, corporate
spin-outs, management buyouts, recapitalizations, industry consolidations
and early-stage financings. For additional information and updates about
Safeguard Scientifics, please visit www.safeguard.com.

About Alliance Technology Ventures

Alliance Technology Ventures (ATV) is a venture capital firm focused on
private company investments in the semiconductor, communication component
and life science industries. Founded in 1993, ATV is based in Sarasota,
FL, with venture partners in Boston and Palo Alto, CA. With over $250
million under management, ATV actively seeks to invest in companies that
fit its investment criteria. For more information, please visit
www.alliancetechventures.com.

Media Contacts:

Mark Sahl
Lazar Partners
(609) 992-5205

Rachel Kessler
Lazar Partners
(917) 660-0608

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