Celerity Systems Announces Improved Prices on T 6000 Digital Set Top Box.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Jan. 7, 2000

Celerity Systems, Inc. (OTC BB:CLRT) today announced that it is reducing list pricing for its T 6000 digital set top box, effective immediately. The T 6000 is one of the most feature-rich set top boxes in the industry, and is aimed at deployments with telephone companies, ISPs, energy companies, cable companies, health care facilities, retailers, universities, the hospitality and multi housing unit industries, and internationally. The T 6000 can provide cable TV, high speed Internet, embedded Web browsing, interactive television (video on demand), home energy management, and a host of other capabilities. It also offers as options a smart card reader, an IDE hard drive, and a DAVIC A0 Utopia interface for network interface modules (NIMs). The T 6000 also has a range of interfaces including coaxial television, s video, composite video, and VGA video outputs, stereo audio, two universal serial bus (USB) ports, and Ethernet 10 Base T and ATM 25.6.

The new list pricing is made possible by improved unit costs, due in part to the design of the T 6000 and also due to the Company's new manufacturing relationship with Global Primax, announced earlier this week. The Company also offers discounted pricing on a negotiated basis for volume purchase commitments, especially over the long term.

"While we do not yet have the large volume of orders in the pipeline that will let us more substantially reduce our T 6000 price, we believe that even this reduction will help stimulate interest in the fully-functioned T 6000 vs. some other more limited products," said Kenneth Van Meter, President and CEO of Celerity. "What people are starting to realize is that the important issue is not reducing the cost of the box by a dollar or two a month, it is increasing the revenue per box by ten or twenty dollars per month or more. This product leapfrogs some transitional products being offered today, and lets system operators implement a true future-oriented solution."

Celerity Systems is a provider of advanced digital set top boxes and video servers for the interactive television and high speed Internet markets, with successful deployments in six countries. Celerity can also provide end-to-end systems through strategic relationships with leading companies including Nortel, Battelle Laboratories, Innovacom, Marconi, and Minerva 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.