Celerity Systems Announces New Generation T 6000 Circuit Board for Interactive Video and High Speed Internet.

KNOXVILLE, Tenn.--(BUSINESS WIRE)--March 1, 1999--Celerity Systems, Inc., (Nasdaq: CLRT) a leading provider of interactive video and high speed internet hardware and software systems and services, today announced the availability of a new generation of its innovative T 6000(tm) digital set top box. The new generation of T 6000 features enhanced performance, better video quality, improved manufacturability, lower cost, and a reduction in operating temperature of more than 15 degrees.

The T 6000 is a set top of choice for deployment for interactive video, high speed internet, home energy management, monitoring services, analog and digital cable television, and other services for cable companies, telephone companies, energy companies, the healthcare industry, education, corporate applications, and multiple dwelling units.

"Today's businesses and consumers are changing how they use and view interactive video and the Internet," said Ken Van Meter, President and CEO of Celerity. "This marketplace requires user-friendly enhancements to meet the evolving demands of businesses and consumers that use digital set top boxes for a wide range of uses including home energy management. We at Celerity are committed to providing our valued customers with continuous improvements and upgrades of the T 6000 family of set top boxes. In addition to improving the overall performance of the unit, we have added new features that we believe will bring new revenue opportunities for our customers."

"The design of the T 6000 is a "swiss army knife" approach to the marketplace," said Mark Cromwell, Vice President of Engineering at Celerity. "The T 6000 can connect efficiently to almost any kind of network - ATM, Ethernet, telephony, analog or digital cable, or, through a network interface module (NIM), to other kinds of networks as well. We also support four simultaneous video outputs: RF video, S video, composite video, and VGA. This allows us to deploy the T 6000 on almost any network architecture and for almost any purpose quite readily, and then, if there is sufficient volume, to customize the set top box for that application and provide a lower cost tailored solution."

"We have been pleased with the improvements in cost, manufacturability, durability, and serviceability," added Dennis Smith, Vice President of Operations at Celerity. "As we continue to improve the T 6000, we believe that it will be the leading digital set top box for high-end deployments in this industry. We also are working on future enhancements at the request of several customers, including adding a hard disk, implementing multiple operating systems, adding DVD and additional applications software."

Celerity Systems, Inc., headquartered in Knoxville, Tennessee designs and manufactures interactive digital video servers and digital set top boxes, and markets complete end-to-end systems for the interactive services and high speed internet markets through its strategic relationships with major companies including Nortel, Minerva, FORE Systems, Battelle Laboratories and Cisco.

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially from those expressed in such forward looking statements. These risks and uncertainties include, but are not limited to: market demand for the Company's products, successful implementation of the Company's products, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including but not limited to, those described under the caption "Description of Business - Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997.