Critical Path's Alternative Workspace Management Solution Helps AT&T Optimize Office Space and Reduce Costly Overhead.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 27, 1999--

Critical Path's Mobilize Product Brings a Web-Based,

Scalable, and Easy-to-Use Reservation System for

AT&T's Alternative Workspace Program

Critical Path, Inc. (Nasdaq:CPTH), a leading provider of business-to-business Internet messaging solutions, today announced AT&T, one of the premier voice and data communications companies, has standardized its alternative workspace program on Critical Path's Mobilize(TM) management solution.

Mobilize, a Web-based alternative workspace application, enables AT&T to make the most efficient possible use of their facilities, dramatically reduce costs, and improve employee productivity.

According to the Harvard Business Review, between 30-40 million people in the United States are either telecommuters or home-based workers. Critical Path's Mobilize helps companies such as AT&T implement effective alternative workplace solutions by creating a central and standardized process for sharing offices.

Mobilize automates the reservation and coordination processes for shared workspaces, also known as "hoteling." Using a Web browser and corporate Intranet, incoming mobile workers can quickly and easily select and locate their workspaces, route phone lines, and arrange for needed equipment.

"By implementing our Mobilize product, AT&T has been able to dramatically reduce costs associated with office space and overhead while at the same time enabling them to use their current office space more efficiently," said Sharon Wienbar, VP of marketing for Critical Path.

"Critical Path is committed to providing its customers with advanced Internet messaging solutions such as alternative workspace solutions in order to address the specific needs of companies. Our relationship with AT&T is a prime example of how Critical Path can work with companies of any size to reduce office space and overhead costs and increase productivity."

Critical Path's Mobilize is at the core of AT&T's alternative workspace plan. Mobilize enables AT&T employees to reserve the workspace they need when they need it. AT&T estimates it will save between $25-$26 million annually by eliminating offices people don't need, consolidating others, and reducing related overhead costs. This translates into a savings of roughly $6,000 per fulltime teleworker.

One of the key requirements for companies implementing alternative workspace programs is to make the program as easy-to-use for both those coordinating the logistics and for the employees who are working under this new office model.

"Instituting an alternative workspace solution can be a very daunting task for companies," said Wienbar. "Our Mobilize solution creates a convenient and standardized way to make workspace reservations."

Critical Path's alternative workspace management solutions enable companies to reduce build-out and real estate expenditures, reduce administrative overhead, and optimize workspace utilization. Mobilize can also scale to handle thousands of users across multiple locations.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is a leading provider of business-to-business Internet messaging solutions for corporations, Internet service providers (ISPs), Web hosting companies, and Web portals.

Critical Path has built an industry-leading global infrastructure with data centers connected to key Internet exchange points, and currently reaches millions of end-users through its customer relationships. Critical Path provides reliable, secure, and scalable email, and a flexible suite of enhanced messaging services to partners such as E

RADE, CompuServe, Network Solutions, U S West, Sprint, and
ICQ.
     Critical Path is headquartered in San Francisco, with offices in
locations nationwide and in Germany and the UK. More information on
Critical Path can be found at www.cp.net.

     Note to Editors: Critical Path is a service mark and the Critical
Path logo is a trademark of Critical Path, Inc. All other trademarks
are the property of their respective holders.