Celerity Solutions, Inc. Reports Fiscal Third Quarter Results.

CONCORD, Mass.--(BUSINESS WIRE)--Feb. 12, 1998--Celerity Solutions, Inc. (NASDAQ:CLTY), (NASDAQ:CLTYW) announced its results for the fiscal third quarter ending December 31, 1997 reporting revenues of $1.5 million, a 32% increase over the prior quarter, and an operating loss of $127,000, a 25% reduction over the prior quarter, before interest, taxes and the write-off associated with the acquisition of Somerset Automation, Inc. (SAI). The quarter compared favorably to the prior year's quarter with revenues ($1.5 million vs. $528,000), and operating loss ($127,000 vs. $430,000). Including the $3.1 million write-off of in-process technology associated with the SAI acquisition, the Company reported a net loss of $3.3 million, or ($0.50) per share.

On a year-to-date basis, exclusive of fiscal 1998 one-time items, the Company's results improved significantly over the previous year with revenues increasing 90% ($3.6 million vs. $1.9 million), and with the operating loss decreasing 58% ($623,000 vs. $1.5 million). On a year-to-date basis, Celerity reported a net loss of $1.8 million, or ($0.29) per share. The loss is attributed to one time items including a gain of $2.0 million associated with the sale of certain multimedia assets to Davidson & Associates, Inc., a division of Cendant Software, and the $3.1 million write-off of in-process technology related to the SAI acquisition.

Assuming the acquisitions of SAI, Client Server Technologies, Inc. and the sale of certain multimedia assets occurred prior to April 1, 1996, on a pro forma basis, the Company's year-to-date revenues would have been $6.9 million and the Company would have operated on a break even basis for net income and EPS. The attached schedule provides actual results and comparative pro forma results for the quarter and year-to-date.

According to Luda Kopeikina, CEO of Celerity, "We are pleased with the fact that this is the second consecutive quarter in which we achieved double digit growth in revenues and a double digit reduction in our operating loss over the previous quarter. These results are consistent with our plan and we expect this trend to continue towards our goal of attaining quarterly profitability this calendar year. Contributing to our fiscal third quarter performance was the benefit from the acquisition of SAI which generated revenues and operating profit for part of December. The quarter also benefited from higher license fee revenues for Continuum products attributed to new contracts with Nortel and Global Van Lines, while operating expenses as a percent of sales decreased."

Ms. Kopeikina added, "We are actively working on the integration of SAI. The SAI acquisition supports our strategy of expanding our product line to provide a broad set of supply chain management functionality. We are now positioned to offer our customers a single solution, which is capable of integrating sales, planning, logistics, material management and warehousing functions. SAI's warehousing product, combined with the Company's existing supply chain management product creates a more powerful product line. This enables our customers to better control their inventory and resources not only between locations in the supply chain but through warehouses as well. This acquisition allows us to better leverage our three major strategic initiatives: the increased investment in sales and marketing; the utilization of the St. Petersburg software development capability; and the establishment of a network of alliances and independent distributors to sell the Company's packaged products."

Celerity, a provider of supply chain management software, has offices in Dedham, MA, Denver, CO, Irvine, CA, and St. Petersburg, Russia. Additional information is available through the Company's web sites: www.celeritysolutions.com and www.somersetwms.com. -0-

This press release may contain certain forward-looking statements (e.g. "expects", "will position") 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.

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                       Celerity Solutions, Inc.
                        Financial Hightlights
                          December 31, 1997



(In thousands,                   Quarter Ended           Nine Months
except per share          Dec.       Dec.       Sept.    Dec.    Dec.
data)                     1997       1996       1997     1997    1996

Net Sales              $ 1,499      $ 528    $ 1,139  $ 3,557  $ 1,867

Cost of Sales              820          -        578    1,943        -

Operating Expenses         806        958        749    2,237    3,363

Income (Loss)
 Before Gain on
 Sale of Assets,
 Write-off of
 Somerset, Interest
 and Tax                  (127)      (430)     (169)    (623)  (1,496)

Gain on Sale of
 Assets, Write-Off
 of Somerset,
 Interest and Taxes     (3,144)       102          -  (1,143)      223


Net Loss               $(3,271)    $ (328)   $ (169)$ (1,766)$ (1,273)


Loss Per Share         $ (0.50)   $ (0.07)  $ (0.03) $ (0.29) $ (0.26)

Loss Per Share -
 Assuming Dilution     $ (0.50)   $ (0.07)  $ (0.03) $ (0.29) $ (0.26)

Weighted Average
 Number of Shares
 Outstanding             6,546      4,832      6,032    6,203    4,832

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                        Pro Forma Results (a)

(In thousands,              Quarter Ended         Nine Months
except per share data)  Dec. 1997   Dec. 1996   Dec. 1997  Dec. 1996

Net Sales              $ 2,464       $ 1,767     $ 6,903    $ 6,259

Cost of Sales            1,324           947       3,467      3,077

Operating Expenses       1,170         1,154       3,389      3,575


Income (Loss)
 Before Gain on
 Sale of Assets,
 Write-off of
 Somerset, Interest
 and Tax                   (30)         (334)         47       (393)

Gain on Sale of
 Assets, Write-Off
 of Somerset, Interest
 and Taxes                 (10)           46         (48)        37

Net Loss                 $ (40)       $ (288)       $ (1)    $ (356)


Loss Per Share           $ -         $ (0.04)       $ -     $ (0.05)

Loss Per Share -
 Assuming Dilution$      $ -         $ (0.04)       $ -     $ (0.05)

Weighted Average
 Number of Shares
 Outstanding             7,993         7,990       7,991      7,990


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                  Selected Actual Balance Sheet Data


(In thousands)               Dec. 31,      Sept. 30, 97

Cash, Cash Equivalents and
   Short-Term Investments    $2,693           $3,594

Current Assets                5,979            4,963

Total Assets                  8,625            7,429

Current Liabilities           3,233              846

Total Liabilities             4,590            2,475

Shareholders' Equity         $4,035           $4,954


(a) Pro forma results assume the acquisition of CSTI and Somerset, and
the sale of certain multimedia assets occurred prior to April 1, 1996.

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CONTACT: Celerity

Luda Kopeikina, 978/287-5888 EXT. 114

OR

Edward Terino, 978/287-5888 EXT. 113