Critical Path's Memova Messaging and Memova Anti-Abuse Selected by Largest ISP in Vietnam.

Memova Solutions Chosen to Provide Reliable and Secure Messaging Services to Vietnam Datacommunication Company Customers

SAN FRANCISCO -- Critical Path, Inc. (OTC:CPTH), a leading provider of messaging software and services, today announced the implementation of a new consumer messaging and security platform for Vietnam Datacommunication Company (VDC), the largest ISP in Vietnam. Through a competitive bid, VDC selected Critical Path's Memova[R] Messaging and Memova[R] Anti-Abuse solutions to power its next-generation messaging infrastructure and to meet increasing demand for consumer email services in the Vietnamese market. CASCADE Ltd., a leading systems integrator and wholly-owned subsidiary of PCCW Ltd., and DTS Communication Technologies Corporation will implement the Critical Path solutions for VDC.

Along with India and China, the Vietnamese market is one of the major growth centers in Asia. In fact, between 2003 and 2005, the number of Internet users in Vietnam increased by 67 percent(a) and experts expect this growth to continue. To meet this anticipated demand, VDC needed a highly scalable messaging platform and chose Critical Path's Memova Messaging solution, which is used by customers worldwide to support millions of users. VDC will also deploy the Memova Anti-Abuse solution - a plug-and-play appliance that protects subscribers from unwanted and unsafe messages.

"Selecting this turnkey solution helps us to build a scalable email platform which greatly enhances the value-added services we can offer our customers," said Vu Hoang Lien, CEO of VDC. "We are well-positioned to deploy our first-phase services quickly and cost-effectively, and to grow our email services rapidly."

With the Memova platform, VDC customers have access to a rich email experience free from spam, viruses and other malicious content. Offering support for POP, IMAP, WAP and Web-based email, Memova Messaging will help VDC build customer loyalty and provide the foundation for value-added services that will take messaging beyond email and create a growing profit center in the future.

"Memova is the optimal platform for VDC to support its growing customer base. Its proven reliability and scalability, along with the ability to add a variety of value-added services, ensures VDC can offer high-quality service enhancements without having to upgrade its infrastructure down the road," said Ted Hsiung, Head of Business Development, CASCADE. "We look forward to working with Critical Path to bring Memova software and CASCADE services to VDC, as well as other customers."

In the future, VDC can easily deploy value-added services on top of email with Memova Messaging, such as: Universal Contacts, a network address book that enables users to access synchronized contacts through any application or device; Digital Life, a service that allows subscribers to create and exchange multimedia content with an online community; and Media Mail, a service that offers subscribers the ability to send massive files Co even files over one Gigabyte in size Co to any recipient, regardless of their email service provider.

"The Vietnamese market is a major Asian growth center and Memova Messaging will provide VDC with the capabilities it needs to thrive as its subscriber base continues to evolve," said Donald Dew, CTO, Critical Path.

VDC expects to complete its migration to the Memova platform by the end of 2006.

About VDC

Vietnam Datacommunication Company (VDC), a state owned company under the Vietnam Post and Telecommunication Corporation (VNPT), is a leading company in the field of information technology in Vietnam. VDC provides Internet (taking 65% market share of Vietnam), VoIP (taking 75% market share of Vietnam), Data transmission (taking 90% market share of Vietnam), Integrated Solution, Software and Value Added services. For information about VDC and its products and services, visit the company Web site: http://vdc.com.vn

About Critical Path Inc.

Critical Path's Memova solutions provide a new and improved email experience for millions of consumers worldwide, helping mobile operators, broadband and fixed-line service providers unlock the potential of email in the mass market. Memova Mobile gives consumers instant, on-the-go access to the messages that matter most. Featuring industry-leading anti-spam and anti-virus technology, Memova Anti-Abuse protects consumers against viruses and spam. Memova Messaging provides consumers with a rich email experience, enabling service providers to develop customized offerings for high-speed subscribers. Headquartered in San Francisco with offices around the globe, Critical Path's messaging solutions are deployed by more than 200 service providers throughout the world. More information is available at www.criticalpath.net.

(a) According to International Telecommunications Union (ITU) http://www.itu.int/home/index.html

Forward-Looking Statements:

This press release contains forward-looking statements by the Company and its executives regarding the performance of our product and service offerings, the future release of our products and services and our customer's products and services which include our offerings, the ability of our customers to achieve cost savings and improve revenues in the provision of services, industry trends, market and customer requirements, the ability of our products and services to meet the business needs of our customers, the market for products and services like ours and the performance of our senior management in achieving strategic goals. The words and expressions "look forward to," "will," "expect," "plan," "believe," "seek," "strive for," "anticipate," "hope," "estimate" and similar expressions are intended to identify the Company's forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, our evolving business strategy and the emerging and changing nature of the market for our products and services, our ability to deliver on our sales objectives, the ability of our technology and our competitors' technologies to address customer demands, changes in economic and market conditions, and software and service design defects. These and other risks and uncertainties are described in more detail in the Company's filings with the U.S. Securities and Exchange Commission (www.sec.gov) made from time to time including Critical Path's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, Forms 10-Q for the three months ended March 31 and June 30, 2006, and Current Reports on Form 8-K, as may be amended from time to time, and all subsequent filings with the United States Securities and Exchange Commission (www.sec.gov). The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Note to Editors: Critical Path, the Critical Path logo, Memova and the Memova logo are the trademarks of Critical Path, Inc., registered in various jurisdictions. All other trademarks are the property of their respective holders.