Celerity Reports Annual Results and Major Debt Restructuring.

DEDHAM, Mass.--(BUSINESS WIRE)--July 16, 1999--

Celerity Solutions, Inc. (Celerity, "the Company")(NASDAQ:CLTY), today announced earnings for the year ended March 31, 1999.

In Fiscal 1999 the Company lost $2.9 million on sales of $11.6 million. The loss resulted from a significant increase in marketing, sales and subcontracted labor costs. This compares to a prior year loss of $2 million on sales of $6.2 million. The loss was $400,000 greater than forecasted on March 12th . The Company also announced that Jim Dore has resigned as CFO. Cheryl McCarthy joined the Company as Controller on June 21th. Paul Carr, Celerity's new CEO, will act as CFO. Paul Fluckiger former President of the CSTI division and acting VP of sales has also resigned.

According to Mr. Carr "The Company missed an opportunity last year to strengthen its position in the marketplace. We have made the difficult changes and expect to show improved financial results in the current quarter. The Company's goal is to break even in the first quarter of this year."

The Company also announced that Paul Carr has converted $300,000 of his debt to equity by purchasing 750,000 shares of Celerity's common stock for 40 cents per share. "I believe the Company's prospects are exciting. Celerity offers supply chain execution software. These are mission critical applications required by companies selling products over the Internet. Over the next 12 months we will simplify our business and focus new energy on our e-commerce strategy."

The Company also announced the finalization of over $1.1 million in debt restructuring. Five notes held by former employees totaling $337,000 will be paid over 24 months. A $240,000 note held by Mr. Ringuette will be paid over 36 months. A $538,000 note held by Mr. Carr will be paid over 42 months. All notes accrue interest at 8% per annum. In conjunction with the restructuring, license rights totaling $400,000 were sold to Mr. Carr and Mr. Ringuette.

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.

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.