Critical Path Amplifies Corporate Strategy With `Midsourcing'.

SAN FRANCISCO--(BUSINESS WIRE)--June 23, 1999--

Critical Path Will Provide Enterprise Customers with Increased Flexibility; New Value-Added Services Leverage Existing IT Systems

Critical Path, Inc. (Nasdaq:CPTH), a leading provider of business-to-business Internet messaging solutions, today announced it will offer an advanced suite of messaging solutions to corporations through its expanded "midsource" strategy. Currently, Critical Path provides its corporate customers with a secure, reliable and scalable email outsourcing solution. This new strategy will enable enterprise customers to selectively outsource value-added messaging services without altering their existing infrastructures or groupware solutions.

Many large corporations have invested heavily in email messaging infrastructure. By offering a suite of hosted Web-based applications such as calendaring based on open standards, Critical Path will provide companies that have chosen in-source email solutions with the opportunity to take advantage of value-added services that provide increased functionality, reliability and scalability. Critical Path is dedicated to staying at the forefront of technology and to quickly bringing to market a complete suite of advanced messaging solutions that allow enterprises to choose which components they want to outsource at what time.

As cornerstones to this strategy, this month Critical Path acquired Fabrik Connect and agreed to acquire dotOne Corporation and Amplitude Software Corp. These companies develop messaging solutions for the corporate market, and have built formidable customer-bases including Chevron, Cisco Systems, Lucent, KPMG, American Airlines, Kraft, United Nations and Sprint. These companies all share similar visions to Critical Path and have built their products and services to leverage the power of the Internet to offer advanced messaging solutions that are accessible anywhere, anytime via a standard Web browser. Combined these companies will solidify Critical Path's market position, moving the company from an email only solution to a messaging solution. In addition, Critical Path will gain a significantly expanded mailbox presence and key technology enabling the company to expand its opportunity through a midsource solution.

"In the competitive high-tech arena, we believe that maintaining a first-mover, category-leader position is essential to ultimate success," said Doug Hickey, Critical Path's president and CEO. "Critical Path is focused on gaining market share and meeting the needs of the largest and most lucrative markets, such as the corporate enterprise. We intend to leverage our first player advantage by aggressively pursuing new customers and technology, thereby allowing us to develop a full spectrum of messaging solutions to complement our core email hosting solution."

"We recently announced three acquisitions that all represent different, yet essential pieces to our strategy. These companies will provide us with the ability to offer advance messaging solutions that take us above and beyond our current outsourced email offerings," continued Hickey.

"With some 400 billion emails generated in the US in 1999, the market for providing email and messaging solutions is exploding," said Steve Robins, Internet analyst at the Yankee Group. "Historically, corporations have invested heavily in infrastructure and have been hesitant to outsource critical business functions such as messaging. Now, we see enterprises beginning to release one aspect of messaging at a time. Critical Path is positioning itself to take advantage of this shift by expanding their services."

How it Fits together

Critical Path brings Web-based, POP3 and IMAP email solutions along with a patent-pending architecture. This architecture was built specifically for the Internet to provide carrier-class reliability and scalability. Critical Path's solid service infrastructure was designed to support a growing number of hosted Internet-based applications.

The agreement to acquire Amplitude Software, announced today, will bring a suite of value-added applications beyond basic email and more than 250 customer relationships. Amplitude provides Web-based solutions for calendaring and resource scheduling. Calendaring is an essential value-added service that creates a single source of event information, streamlines the planning and coordination process, reduces paperwork and improves communication across the enterprise.

The completion of the acquisition of dotOne Corporation will bring 1300 corporate customer relationships along with solutions that will allow Critical Path to present midsourcing options, so companies can take advantage of email and messaging services without altering their existing infrastructure. dotOne's solutions support enterprise/proprietary systems such as MS Exchange, Lotus Notes, Novell GroupWise, Lotus cc:Mail.

Fabrik Connect, Critical Path's first acquisition, brought Critical Path approximately 500 customer relationships in the corporate market. Fabrik Connect's technology will enhance Critical Path's enterprise solution by helping address the needs of companies using non-standard protocols. Ultimately, we believe that these customers will migrate from legacy gateway solutions to the advanced Internet email and messaging services offered by Critical Path.

Critical Path plans to offer other value-added services such as unified messaging, certified delivery, advanced directory services, permanent archiving and instant messaging.

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 partnership agreements. Critical Path provides reliable, secure, and scalable email, and a flexible suite of enhanced messaging services to partners such as E

RADE, Network Solutions, US West, 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.
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     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.
     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 other companies' respective
business operations. These risks and uncertainties also include those
that relate to the proposed acquisitions 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.