Press Release Source: Celerity Systems, Inc.

Celerity Systems Reports Profits in the Second Quarter Ended June 30
Thursday August 26, 8:30 am ET
-- Generates Positive Operating Income for Second Consecutive Quarter --

KNOXVILLE, Tenn., Aug. 26 /PRNewswire-FirstCall/ -- Celerity Systems, Inc. (OTC Bulletin Board: CESY - News), a business development company focused on providing capital formation, management advice and investments in developing companies, announced today that on August 22, 2004, the Company filed its Form 10-Q, which is available at http://www.sec.gov.
During the three-month period ended June 30, 2004, the Company received $350,000 in proceeds from its investment in Yorkville Advisors Management, LLC, which has been recorded as dividend income in the statement of operations. Celerity had a net income of $28,682 for the three months ended June 30, 2004, compared to a net loss of $447,925 for the three months ended June 30, 2003. Since December 1, 2003, the Company has received $760,000 in proceeds from one of its portfolio companies.

Operating expenses decreased in the second quarter of 2004 to $135,785 compared to the $216,501 in the second quarter of 2003. Expenses were reduced in the 2004 period by the lack of non-recurring charges for corporate asset abandonment and state sales and use tax assessments equaling approximately $91,000.

Celerity President and CEO Robert Legnosky stated, "The second quarter marked our milestone achievement of becoming profitable for the first time in our history. As a BDC, we remain focused on identifying and investing in companies, such as Yorkville, that deliver the potential to continue to propel the Company with quarter-to-quarter improvements in cash and profitability."