Celerity DigiKnow Digital Education System Wins State of Pennsylvania Contract Status.

Business Editors

KNOXVILLE, Tenn. & PIONEER, Ohio--(BUSINESS WIRE)--July 26, 2002

Celerity Systems, Inc. (OTCBB:CESY), Kidston Communications and Sage Technology Solutions, Inc. (Sage) today announced that the Celerity DigiKnow Digital Education System is now approved for purchases under the Pennsylvania General Services Administration Contract. This designation will allow schools and other government entities in Pennsylvania to purchase the DigiKnow system much more easily. This designation was secured by Sage Technology Solutions, the Celerity Systems Golden C Distributor for Pennsylvania, with support from Kidston Communications, Celerity's national distributor for the education market.

"We have been enthusiastic about Celerity's products and services since joining the distribution network in March," said Daniel Rohrer, President of Sage. "We have already sold and installed one system for the Capital Area Intermediate Unit, and expect to sell several more this year. We are convinced that the DigiKnow system is the best available for digital education in the country today. What we have done by achieving contract status is to make it simpler and quicker for our customers to buy the systems."

"We have been very pleased, of course, with the strong performance of Sage as a member of our distribution team," said Edward Kidston, President of Kidston Communications, "and this is a further example of their professionalism. We hope that we can now use this as a reference to secure contract approval in all states more quickly. We are also still actively working to find quality distributors of the caliber of Sage Technology Solutions in every state to ensure that we are not missing any active opportunities."

"One of the challenges of being a player of size in the education market is dealing with the complex process of specification and purchasing," said Kenneth Van Meter, President and CEO of Celerity, "and contract status means that our potential customers can order directly from the contract, often without the need for an expensive and time-consuming specification and bidding process. We think this will be of real value to our customers, and to our distributors. Some states, such as Florida and Georgia, have recently gotten very large sums allocated to them for education, but the process is daunting. This should help."

Kidston Communications is a provider of hardware, software and services to the education industry, and is the national distributor for Celerity Systems, Inc., in the education market in North America and Singapore.

Sage Technology Solutions, Inc. is a full service technology and communication solutions provider specializing in voice systems, certified premise wiring, internetworking solutions, healthcare and education specific communication systems and professional sound and multimedia systems.

Celerity Systems is a provider of advanced digital set top boxes and video servers for interactive television and high-speed Internet. Key markets include schools, energy companies, hospitality, hospitals and assisted living, multihousing, telcos, and corporate applications. Celerity can also provide end-to-end systems through strategic relationships with leading technology companies. Celerity also provides content for entertainment and education systems.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.