Critical Path Agrees to Acquire Leading Corporate Email Messaging Service Provider.SAN FRANCISCO--(BUSINESS WIRE)--June 14, 1999-- Acquisition Will Accelerate Critical Path's Penetration into the Corporate and Midsource Market Critical Path, Inc. (Nasdaq:CPTH), a leading provider of business-to-business email service See Internet e-mail service. solutions for corporations, Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. (ISPs), Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. companies, and Web portals, today announced it has entered into a binding letter of intent to acquire dotOne Corporation, a leading corporate email messaging service provider. dotOne, founded in 1994 and based in Salt Lake City, offers email messaging solutions that leverage enterprises' existing messaging systems. dotOne provides its clients with value-added and managed messaging services that enable customers to realize more value, power and functionality from their email or groupware Software that supports multiple users working on related tasks in local and remote networks. Also called "collaborative software," groupware is an evolving concept that is more than just multiuser software which allows access to the same data. systems. dotOne's customer base of approximately 1300 companies and organizations spans a broad range of industries to include: financial, insurance, legal and manufacturing. dotOne's customers include: American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the , CNA (Certified NetWare Administrator) See Novell certification. Insurance, Federal Home Loan Bank of Chicago, Frontier Insurance, Kraft, Sprint, Sullivan & Cromwell, United Nations, U.S. Department of Justice, and Viewer's Choice/Pay Per View. In addition, dotOne provisions the messaging services provided by two of the three largest long distance carriers to their corporate customers. "We believe the acquisition will enhance Critical Path's leading position in the email outsourcing market by increasing our customer base and developing new value-added services for the enterprise market through our expanded `midsource strategy'," said Doug Hickey, Critical Path's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We believe this strategy will enable the enterprise customer to take advantage of these new value-added services through their existing desktop solution without altering their existing infrastructure or groupware solution. Our goal is to combine Critical Path's proprietary technology and dotOne's messaging services to offer an expanded range of customers the most advanced email messaging service solutions possible." dotOne's hosted services include email for both open systems (POP3/IMAP4) as well as proprietary systems including Lotus Notes Messaging and groupware software from IBM Lotus that was introduced in 1989 for OS/2 and later expanded to Windows, Mac, Unix, NetWare, AS/400 and S/390. Notes provides e-mail, document sharing, workflow, group discussions and calendaring and scheduling. , MS Exchange, Novell GroupWise GroupWise is a cross-platform collaborative software product from Novell, Inc. offering e-mail, calendaring, instant messaging and document management. Summary GroupWise can operate on a number of server and workstation platforms. and Lotus cc:Mail. dotOne offers integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. for users of hosted proprietary systems such as bi-directional faxing, paging, X.400 communications from existing email clients. dotOne also offers enterprise services such as directory synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. , which facilitates the transfer of messages and attachments between disparate email systems and allows users of one system to see users of other systems directly in their native address book. dotOne also offers virtual private networking services that allow companies to transfer messages securely among multiple sites. About Critical Path, Inc. Critical Path, Inc. (Nasdaq: CPTH) is a leading provider of business-to-business email service 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 See IXP and NAP. , and currently reaches millions of end-users through its partnership agreements. Critical Path provides reliable, secure, and scalable email, and a flexible suite of enhanced messaging services Abbreviated as EMS, an application-level extension to Short Message Service (SMS) for cellular phones available on GSM, TDMA and CDMA networks. An EMS enabled mobile phone can send and receive messages that have special text formatting (such as bold or italic), animations, to partners such as E
RADE, Network Solutions, U S WEST, Starmedia,
Sprint, and AOL/ICQ. Critical Path is headquartered in San Francisco,
California, with offices in locations nationwide and in Germany and
the UK. More information on Critical Path can be found at www.cp.net.
Critical Path and the Critical Path logo are the trademarks of
Critical Path, Inc. All other trademarks are the property of their
holders.
This press release contains forward-looking statements. These
statements may be identified by the use of words such as "believes,"
"expects," "anticipates," "intends," and "plans." Actual results may
differ materially from those anticipated in these forward-looking
statements. These forward-looking statements are based on current
expectations that are subject to risks and uncertainties, including
those relating to the possible inability to complete the acquisition
as scheduled or at all. These risks and uncertainties include those
that exist with Critical Path's and dotOne's respective business
operations. These risks and uncertainties also include those that
relate to the proposed acquisition including risks that integration of
the operations, technologies and products of the combined companies
might not occur as anticipated, that management attention might be
diverted from day-to-day business activities of both companies during
the period through the closing and thereafter, and that greater than
normal employee turnover might occur prior to and after the closing.
Whether or not the proposed acquisition closes, actual results of
Critical Path, including Critical Path's results of operations, may
differ materially from historical results. For a more detailed
description of the risks related to Critical Path, please refer to
Critical Path's prospectus dated June 1, 1999, which has been filed
with the SEC.
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