Celerity Solutions Announces Third Quarter Results.

Business/Technology Editors

DEDHAM, Mass.--(BUSINESS WIRE)--Feb. 16, 2000

Celerity Solutions, Inc. ("Celerity", OTC:CLTY), announced a loss before taxes of $144,530 on revenues of $1.4 million for fiscal quarter ended December 31, 1999. Celerity's third quarter results compare to a loss of $505,806 on sales of $2.6 million in the same quarter of the prior fiscal year. On a year-to-date basis Celerity has reported a loss of $85,722 or approximately $0.01 per outstanding common share on $6 million in revenues.

                        Celerity Solutions Inc.
            Condensed Consolidated Statement of Operations

                          Three Months Ended       Nine Months Ended
                              December 31             December 31
                           1999        1998        1999        1998
                              Unaudited                Unaudited
Revenues:
  Services             $1,054,219  $2,236,310  $4,558,015  $6,359,623
  Software licenses       293,674     346,577   1,344,328   1,638,762
  Hardware and other       44,377       2,508      59,372   1,022,989
Total revenue           1,392,270   2,585,395   5,961,715   9,021,374

Cost of revenues:
  Services                903,768   1,427,901   3,079,598   4,423,305
  Hardware and related     15,000       5,594      42,500     873,871
  Amortization of
   capitalized software    52,497      43,266     157,491     129,798
Total cost of revenues    971,265   1,476,761   3,279,589   5,426,974
Gross margin              421,005   1,108,634   2,682,126   3,594,400
Operating expenses:
  Research and
   development            128,806     255,408   1,069,133     818,373
  General and
   administrative         284,630     582,905     930,881   1,888,230
  Sales and marketing     213,419     509,322     725,600   1,348,999
  Amortization
   of goodwill             35,299      34,770     105,896     104,313
  Restructuring
   expense                (81,783)       --       (81,783)       --
Total operating expenses  580,371   1,382,405   2,749,727   4,159,915

Operating loss           (159,366)   (273,771)    (67,601)   (565,515)

Other income (expense):
  Interest and other
   income                  35,214      30,404      39,667     118,292
  Interest expense        (20,378)    (56,383)    (57,788)   (180,833)
Loss before income
  taxes                  (144,530)   (299,750)    (85,722)   (628,056)
 Income tax benefit          --        69,250        --       122,250
Net loss               $ (144,530) $ (230,500) $  (85,722) $ (505,806)
Loss per common share:
Net loss per share     $    (0.02) $    (0.03) $    (0.01) $    (0.06)
Weighted average
 shares outstanding     9,592,886   8,035,189   9,592,886   8,023,616

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, 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.