Celerity Systems Qualifies IES As Second Manufacturer for T 6000 Digital Set Top Box.

Business Editors & High Tech Writers

KNOXVILLE, Tenn. & Gray, Tenn.--(BUSINESS WIRE)--July 25, 2001

Celerity Systems, Inc. (OTC BB:CLRT) today announced that it has completed qualification of IES as a second manufacturer for its T 6000 Digital Set Top Boxes. Celerity's other qualified manufacturer for the T 6000 is Nextek, located in Madison, Ala., who will continue to manufacture the product.

"We wanted to have a second fully-qualified manufacturer to have more capacity and more flexibility to scale up quickly for large or unexpected orders," said Kenneth Van Meter, President and CEO of Celerity. "Nextek does a very fine job for us, but it is prudent to have two fully qualified sources for our most critical product. Since the two companies are several hundred miles apart, this should also give us some protection against natural disasters, such as weather, power outages, or transportation problems. Each of these companies is capable, without a major retooling, of producing up to 10,000 units per month for us, and of course each would be happy to grow to do more. It gives us a lot of comfort to have two strong manufacturing partners instead of just one, regardless of how outstanding they may be."

"We have been impressed with IES," added David Brumgard, Chief of Research and Development for Celerity. "They originally were just doing some small circuit boards for us, but their enthusiasm, attention to detail and aggressive cost management made us take a further look. The first run they have done for us is excellent, and we plan to do a lot of business with them in the future."

Celerity recently added a seasoned Production Manager, Keith Hodge, to its team to manage the production of its products, which are now made in several plants throughout the US.

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, hospitals and assisted living, telcos, energy companies, and corporate applications.

IES is a contract manufacturer of complex electronics products located in Gray, Tennessee. Other major customers include Siemens, Hughes Network Systems, and Solectron Technology. IES utilizes state-of-the-art manufacturing equipment, such as DEK, Universal, Panasonic, and BTU, and has a long-term dedicated workforce focused on quality and low cost manufacturing.

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.