Portico Systems Raises $7.7 Million From The Two Top Mid-Atlantic Private Equity Firms

Builds on Success in Fast-Growing Healthcare IT Sector – Provider Network Management

PHILADELPHIA--(BUSINESS WIRE)--Portico Systems, the leader in Provider Network Management solutions, raised $7.7 million in Series-B financing, with investments from two of the region’s top private equity firms: Edison Ventures Fund and Safeguard Scientifics.

“Portico is leading the market for smarter, streamlined communication between insurers and health networks”

Edison Ventures, based in Lawrenceville, N.J., led the round, with a $4.9 million investment. Doug Petillo, a partner with Edison, will join Portico’s board of directors. Safeguard Scientifics, Inc. (NYSE:SFE) invested $2.8 million as a follow on to their initial investment which led the company’s initial $6M round of funding in 2006. Both firms have extremely strong healthcare and IT portfolios.

“Portico is leading the market for smarter, streamlined communication between insurers and health networks,” said Petillo. “Healthcare payers are actively seeking better solutions to control healthcare costs, while keeping both doctors and patients satisfied. This end-to-end activity is becoming a critical business issue – and Portico is ideally positioned to capture this market.”

Portico’s software, which was commercially launched in late 2004, is already used by five of the country’s top health plans to improve internal operations and increase efficiencies. It automates and manages the critical business processes that lie at the heart of high-performance provider networks: contracting with and enrolling new physicians, servicing them, and streamlining payment and other claims.

“We’re tremendously excited by Portico’s success,” said John Loftus, executive vice president and managing director of information technology, Safeguard. “It’s driving million-dollar-plus savings for customers – and is clearly seen as a top player in this fast-growing space.”

“Portico’s momentum has never been stronger from an operational, sales, marketing and financial perspective than it is right now,” said Ned Moore, CEO, co-founder and director of Portico Systems. “As we capitalize on the market need to optimize provider network operations, the support and value that Safeguard and Edison bring us will enable us to continue honing our operational excellence and increase our footprint in the market.”

About Portico Systems

Portico Systems offers health plans software solutions exclusively focused on unlocking the value of Provider Network Management. Our hallmark Portico Provider Platform empowers health plans to infuse agility into their provider network management functions while delivering actionable provider information. The platform streamlines provider network processes while accelerating new revenue streams, enhancing employee effectiveness and optimizing provider relationships. Portico Systems is a partner company of Safeguard Scientifics, Inc. (NYSE:SFE) www.safeguard.com. For more information, please contact Christopher Jones at [e-mail] or 215-358-3723. You may also visit our website at www.porticosys.com.

About Edison Venture Fund

Established in 1986, Edison partners with entrepreneurs, service providers and other financing sources to build successful companies. Edison provides capital and value-added services to expansion stage ($5 to 20 million revenue), information technology businesses. Initial investments range from $5 to 8 million. Edison typically serves as a sole or lead investor in financings up to $10 million. In addition to providing expansion capital, Edison funds management buyouts, recapitalizations, spinouts and secondary stock purchases.

Edison’s investment professionals are based in Lawrenceville, NJ, New York, NY, West Chester, PA, and McLean, VA. Industry specialties include application software, communications, financial technology, interactive marketing, healthcare & pharmaceutical IT. Edison’s successes include Axent, Best Software, Dendrite, Gain Capital, MathSoft, Princeton Financial, Visual Networks, Vocus and many other information technology leaders, which have a combined market value exceeding $5 billion. Edison currently has $550 million under management and is actively making new investments. www.edisonventure.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), Technology-Enabled Services and Internet-based Businesses, 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. www.safeguard.com