Celerity Announces Recapitalization.

DEDHAM, Mass. -- Celerity Solutions Inc. (CLTY.PK) d/b/a Slingshot eCity ("Celerity" or the "Company") today announced that it would recapitalize itself by converting a portion of its debt to equity. Celerity currently has a total of 25,000,000 shares of its Common Stock authorized for issuance and 16,916,780 shares of Common Stock issued and outstanding.

On May 4, 2005, the Company's board of directors approved the conversion of $580,000 in outstanding Company debt in exchange for the issuance of an additional 5,300,000 shares of Common Stock valued at about $ .11 per share. These shares have not yet been issued. The Company's board of directors has also authorized the President of the Company to negotiate the conversion of additional Company indebtedness in exchange for up to an additional 1,730,000 shares of the Company's Common Stock. The Company's long term debt balance after the above transactions is expected to be approximately $1.4 million.

Celerity Announces New Contracts Through Its Slingshot Division

Celerity today announced two new contracts for its Slingshot eCity application suite. The total value of these agreements is approximately $600,000.

CNA Surety has licensed the Slingshot Receivables and Payables modules. The solution will manage collections processes and pay commissions to 20,000 agents across the US and Canada. The competition for CNA's business was between Slingshot, Oracle's Peoplesoft division and SAP.

The Company's complete product line was also licensed by the Hursey group in April of 2005. Hursey's Cross Dockers division provides warehousing and logistics services through 400 independent agents in the US. According to Everett King, Cross Dockers president, "Our decision to go with Slingshot was primarily due to the capabilities of Slingshot's "real time" supply chain planning engine. We were also impressed with the flexibility provided by the eTools toolset."

Paul Carr, Celerity's President and CEO stated - "We are very pleased with the progress of our Slingshot business. It is especially gratifying to be selected over large competitors such as SAP and Peoplesoft. I believe our success can be attributed to the value provided by our exclusive eTools architecture."

Over the last few years Celerity has developed an enterprise software suite "Slingshot eCity(TM)". Seven core applications are now complete. Marketing efforts have shown promise. Ten clients have licensed the new Slingshot eCity software. The client list includes Lockheed Martin, General Electric, Computer Sciences Corp and Homebanc Mortgage Corp. At General Electric, the Company's software package is operational at 60 of GE's 160 equipment service facilities and it will be installed and operational at the remaining service facilities in the near future.

The eCity suite is a series of "web based" Enterprise Distribution, Procurement, Warehousing and Financial Management applications built on Microsoft's .NET architecture. Support is provided for Oracle and SQLServer databases. All applications are developed in eTools(TM) - Slingshot's rapid application development environment for MS.NET applications. eTools(TM) allows Slingshot's customers to "personalize" their applications without programming.

Celerity Announces Investor Conference Call

In order to provide information to the Company's stockholders, Celerity will be hosting a conference call for all interested investors on Friday, July 8, 2005 at 11:00 a.m., EST. The purpose of the call is to answer investor questions regarding the Company's changes in capital structure, and to provide additional information concerning the Company's products and customer contracts. To access the Company's investor conference from the US please call 866-569-6698. International callers use 781-250-0240. The access code for the call is 8625977. Questions emailed in advance to [e-mail] will be addressed during the call. Information disclosed in the call will be posted on the Company's website.

Caution Concerning Forward Looking Statements: This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.