Critical Path Adds Gymboree to Growing Roster of Corporate Customers.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--May 15, 2000

Critical Path Replaces Gymboree's Previous Messaging Provider

to Deliver Increased Performance, Reliability and Security

Critical Path Inc. (Nasdaq:CPTH), the dominant global provider of advanced Internet messaging and collaboration solutions, today announced a multi-year agreement with The Gymboree Corp. (Nasdaq:GYMB), a leading designer, manufacturer and retailer of unique, high-quality apparel and accessories for children, to provide advanced Internet messaging solutions to meet the mission-critical communication needs of Gymboree's employees. Gymboree's decision to work with Critical Path enables it to provide employees worldwide with the most reliable, scaleable and secure Internet messaging solutions available. Through this relationship, Critical Path will provide Gymboree with Web-based and Post Office Protocol (POP 3) email.

Critical Path's integrated Web-based and POP3 email enables Gymboree to provide its worldwide employees with anywhere, anytime access to email, which is especially important given Gymboree's internationally dispersed corporate environment. Critical Path's advanced Web-based email enables Gymboree team members, regardless of whether they are in the corporate office or at a distant store location, to send and receive email with a Web browser without having to install any software. Employees may use a POP3 client on their main computers, if they choose. Critical Path's experienced and proven technical expertise in Internet messaging frees companies like Gymboree from the burdens and expense of managing their own messaging solutions, enabling them to focus on their core business.

"By working with Critical Path, we are able to leverage their world-class infrastructure and provide our employees with the industry's most reliable, scalable, and secure messaging solutions in order to efficiently handle the mission critical communication needs essential to our whole team," said Ed Wong, senior vice president of Supply Chain and Technology of Gymboree.

Critical Path's allsource strategy allows companies to completely outsource all of their messaging and collaboration services to Critical Path, selectively outsource specific services, deemed midsourcing, or implement Critical Path's solutions in-house, also known as insourcing. By outsourcing its messaging needs to Critical Path, Gymboree is able to take advantage of one of the most secure, comprehensive and integrated platforms of messaging services available that can scale to meet the growing demands of their team worldwide.

"Critical Path is proud to add Gymboree to our growing roster of corporate customers who are leveraging Critical Path's messaging expertise and leading infrastructure to achieve improved service, performance, and security," said Dave Thatcher, president of Critical Path. "Critical Path's allsourcing strategy provides Gymboree with the most advanced Internet message solutions available, enabling them to leverage the power of the Internet for improved communication and collaboration."

Going forward, Gymboree could take advantage of Critical Path's complete range of Internet messaging solutions and expand its relationship to include Critical Path's integrated calendaring solutions. Critical Path has developed a full spectrum of Internet messaging solutions, including calendaring, Internet fax, unified messaging, guaranteed delivery and wireless access, to complement its core email solutions.

The Gymboree Corp.

The Gymboree Corp. designs, manufactures and retails unique, high-quality apparel and accessories for children. As of April 29, Gymboree operated 605 stores, including 554 stores in the United States, 20 stores in Canada and 31 in Europe, as well as an online store at www.gymboree.com. The company also offers directed parent-child developmental play programs at more than 420 franchised and company-operated centers in the United States and 14 other countries.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is the dominant global provider of complete end-to-end Internet messaging and collaboration solutions for wireless, Internet-centric, telecommunication and corporate businesses. Through its allsourcing strategy, Critical Path is the only advanced messaging provider to offer businesses the flexibility to outsource, midsource or insource all or part of their messaging and collaboration applications. Critical Path has built an industry-leading global infrastructure with data centers connected to key Internet exchange points. Critical Path's technology currently reaches more than 100 million end-users through its customer relationships including more than 25 million wireless devices. Critical Path provides reliable, secure, and scalable e-mail and a flexible suite of enhanced messaging services to partners such as E*TRADE, CompuServe, Network Solutions, US West, Sprint, France Telecom, British Telecommunications and ICQ. Critical Path is headquartered in San Francisco, with offices in locations nationwide and in Germany, England, Ireland, France, Denmark, Italy, Switzerland, Brazil and Argentina. More information on Critical Path can be found at www.cp.net.

The statements in this press release relating to matters that are not historical are forward-looking statements. Actual results could differ materially from these forward-looking statements. Risks and uncertainties facing Critical Path are described in its prospectus dated June 1, 1999 and with its periodic filings with the Securities and Exchange Commission (www.sec.gov).

Note to Editors: Critical Path and the Critical Path logo are the trademarks of Critical Path, Inc. All other trademarks are the property of their holders.