Celerity Systems Holds Annual Shareholders Meeting.

Business Editors/Technology Writers

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug. 24, 2001

Celerity Systems, Inc. (OTC BB: CLRT) held its Annual Meeting of Shareholders at its offices in Knoxville, TN on August 23. The shareholders approved both outstanding items on the agenda, with approximately 89% of authorized shares represented at the meeting. The shareholders approved an increase in the number of authorized common shares from 50 million to 250 million shares. The shareholders also reelected the board of directors, which includes a founder of the firm, Dr. Fenton Scruggs, and Kenneth Van Meter, president and CEO, David Hultquist, president of Capital Resource Consultants, a diversified capital management company, Bruce Thompson, president of First Toledo Corp, an owner-developer of assisted living facilities and manager of limited partnerships with assisted living assets, and Edward Kidston, president of Kidston Communications and an officer of the Kidston Family Companies.

"We appreciate the confidence of our shareholders in our board of directors and in providing the shares to fund our strategic initiatives," said Kenneth Van Meter, president and CEO of Celerity, who chaired the meeting. "Now that we are getting new projects and shipping our products to customers, it is essential that we have the funding available to continue to develop, market, produce and support our products."

Celerity Systems is a provider of advanced digital set top boxes and video servers for interactive television and high-speed Internet. Key markets include schools, hospitality, multihousing, energy companies, hospitals and assisted living, telcos, and corporate applications. Celerity can also provide end-to-end systems through strategic relationships with leading technology companies.

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.