Celerity Systems Announces New Digital Video Server.

Business Editors

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug. 25, 2000

Celerity Systems, Inc. (OTC BB: CLRT) today announced the availability of its new digital video server, the CTL 9500. The CTL 9500 is the most advanced server ever offered by Celerity, which has been manufacturing servers since 1994, with fifteen deployments around the world. The CTL 9500 is much more compact, works in a wider range of operating conditions, and offers substantially more customer ports and content storage per dollar than the Company's earlier models. The CTL 9500 also supports additional video standards, including RealVideo(TM) and QuickTime(TM), and works on a variety of networks architectures, including asynchronous transfer mode (ATM) and Ethernet(TM).

"The CTL 9500 is an important part of our broadband strategy," said Ken Van Meter, President and CEO of Celerity. "With the availability of faster processors, more dense storage, and other technical enhancements over the last three years, we knew it was time for a markedly more advanced product, and the CTL 9500 is an ideal fit for the markets now emerging today. This server can be economically used in small systems, such as hotels, apartment buildings and hospitals, and it can also be scaled upward to almost any size, so it is ideal for deployments in entire communities, such as by telcos, energy companies, ISPs, or cable companies. As with all our products, it is also highly standards compliant, so it is easy to integrate with other network components. We think it is a real winner."

The CTL 9500 is being manufactured on an OEM basis for Celerity by nCUBE Corporation in their modern plant in Beaverton, Oregon, and is available for immediate shipment.

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, Cisco, 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.