CESY:
Celerity Systems Reduces Debt by an Additional $1.6 Million
/FROM PR NEWSWIRE BOSTON 617-482-5355/
TO BUSINESS AND TECHNOLOGY EDITORS:
Celerity Systems Reduces Debt by an Additional $1.6 Million
KNOXVILLE, Tenn., Oct. 17 /PRNewswire-FirstCall/ -- Celerity Systems, Inc.
(OTC Bulletin Board: CESY), a leading provider of innovative digital video on-
demand solutions, announced today that the Company has entered into an
additional settlement of certain convertible notes that it had received from
individual investors. Celerity previously announced on October 8, 2003 that it
had entered into a partial settlement with holders of convertible debentures.
Effective in the third quarter ended September 30, additional holders of the
convertible debentures have agreed to waive approximately two and a half years
of accrued interest and penalties owed to them by Celerity. These investors
further agreed to convert the principle amount due into equity at a fixed
price similar to the previously announced settlement.
Celerity President and CEO Robert Legnosky, stated, "This partial
settlement significantly reduces our debt owed to debenture holders by $1.6
million in the third quarter. To-date, Celerity's actions represent a total
reduction in what is owed to debenture holders and other creditors by $2.14
million. In addition to strengthening our balance sheet, the forgiveness of
interest and penalties associated with the convertible note will positively
impact our bottom-line. Our outlook for the second half of 2003 is greatly
improving and we look forward to further building shareholder value in the
near future."
About Celerity Systems, Inc.
Celerity Systems designs, develops and markets advanced digital set-top-
boxes and video servers for interactive television and high-speed Internet.
The Company's products are deployed in six countries, serving key markets such
as schools and telecommunication companies. Celerity also provides a
comprehensive package of content, including 1,300 titles available, for
entertainment and educational applications. Through strategic relationships
with leading technology companies such as Cisco, Nortel, Extreme Networks, and
Elastic Networks, Celerity also can deliver fully integrated, end-to-end
systems of the highest quality. Additional information on Company can be found
online at: celerity.com. Investors should visit:
otcfn.com.
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.
Company Contact: Investor Relations Contact:
Robert Legnosky, President & CEO Gary Geraci
Celerity Systems, Inc. OTC Financial Network
865-539-5300 781-444-6100 ext. 629
rlegnosky@celerity.com garyg@otcfn.com
SOURCE Celerity Systems, Inc.
/CONTACT: Robert Legnosky, President & CEO of Celerity Systems, Inc.,
+1-865-539-5300, rlegnosky@celerity.com; or Investor Relations, Gary Geraci
ofOTC Financial Network, +1-781-444-6100 ext. 629, garyg@otcfn.com/
/Web site: celerity.com
Oct-17-2003 11:00 GMT
Symbols:
US;CESY
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