Celerity Reports - Profitable Quarter, First Ever for Supply Chain Business.

DEDHAM, Mass.--(BUSINESS WIRE)-- Aug. 24, 1999--

Celerity Solutions, Inc. (Celerity, "the Company", NASDAQ:CLTY), today announced earnings for its first fiscal quarter ended June 30, 1999. The Company earned $31,789 on sales of $2.3 million. This was the Company's first quarterly operating profit since Celerity moved from consumer to supply chain software in 1997. It compares with a $2.3 million loss in the prior quarter. Cash increased from $401,376 at March 31, 1999 to $779,043 while current liabilities were reduced from $3.6 million to $2.6 million. Accounts receivable balances were reduced from $2.8 to $1.6 million

The current quarterly results compare to a loss of $103,297 on sales of $3.4 million in the same quarter of the prior fiscal year. Consulting services increased from $1.9 million to $2.0 million. Software licenses declined from $.5 million to $.3 million. Hardware revenues declined by $.9 million. The Company had a large hardware sale in the same quarter of the previous year. There were no hardware sales in the current quarter. The Company sometimes sells hardware in conjunction with its Warehouse Management application suite.

According to Paul Carr Celerity's new CEO "I am pleased with our results this quarter. However, we expect demand for our products to soften as the year 2000 approaches and customers focus their efforts on making their in-house software Y2K compliant. Recent cost reductions should allow us to weather any downturn. Our focus now is to complete the integration and packaging of our new Collaborative Supply Chain Execution (CSCE) suite. We intend accomplish the by the end of our fiscal year, positioning Celerity to serve what we believe will be an expanding market for CSCE software in the year 2000 and beyond." -0-

                                                Three Months Ended
                                                      June 30
                                                1999          1998
                                              -----(Unaudited)-----
Revenue:
 Services                                  $ 2,003,517    $ 1,933,570
 Software licenses                             330,154        531,136
 Hardware and other                                  0        914,671
Total revenue                                2,333,671      3,379,377
Cost of sales
 Services                                    1,042,159      1,398,234
 Hardware and related                           15,000        781,396
 Amortization of capitalized software           52,497         43,266
Total cost of sales                          1,109,656      2,222,896
Gross margin                                 1,224,015      1,156,481
Operating expenses:
 Research and development                      514,652        292,400
 General and administrative                    322,944        598,425
 Sales and marketing                           272,938        355,749
 Amortization of goodwill                       35,299         34,771
Total operating expenses                     1,145,833      1,281,345
Operating income (loss)                         78,182       (124,864)
Other income (expense):
 Interest and other income, net                (29,428)        65,444
 Interest expense                              (16,965)       (63,877)
Income (loss) before income taxes               31,789       (123,297)
Income tax (expense) benefit                         0         20,000
Net income (loss)                          $    31,789    $  (103,297)

Celerity Solutions, Inc., provides Collaborative Supply Chain Execution software. Our products enable customers to accelerate the flow of material from supplier to customer reducing inventory levels and improving customer service. Continuous planning and execution provides the next level of quick response. Founded in 1982, Celerity has offices in Dedham MA, Newark NJ, Chicago IL, Irvine CA, and St. Petersburg Russia.

For more information contact: Dave Waldron - Director of Marketing at [phone] x233, or visit the Celerity web site at www.celeritysolutions.com

This press release may contain certain forward-looking statements, e.g. "expect", "projected," within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. Celerity cautions readers not to place undue reliance on any forward looking statements, which speak only as to management's expectations on the date hereof. Celerity does not undertake - and specifically declines any obligation - to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.