Critical Path Announces Pricing of $300 Million Convertible Subordinated Notes in a Private Offering.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--March 28, 2000

Critical Path, Inc. (Nasdaq:CPTH), the dominant global provider of business-to-business Internet messaging and collaboration solutions, today announced it has entered into an agreement to sell $300 million of convertible subordinated notes in a private offering.

The size of the offering was increased from the $250 million level previously announced. The offering is expected to close on March 31, 2000.

The company is selling $300 million in aggregate principal amount of 5.75% convertible subordinated notes due April 1, 2005, in accordance with SEC Rule 144A. The company has granted the initial purchasers a 30-day option to purchase an additional $50 million aggregate principal amount of these convertible notes to cover over-allotments, if any. The notes will be convertible, at the option of the holder, into shares of Critical Path's common stock at a conversion price of approximately $101.48 per share and will be non-callable for three years.

Critical Path expects to use the net proceeds of the convertible note offering for working capital and for other general corporate purposes. The company may also use a portion of the net proceeds to facilitate acquisitions of complementary businesses, products or technologies and to fund strategic investments. Critical Path's focus is speed of execution and increasing its competitive advantage.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

The securities have not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

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 corporations, telecommunication providers, Internet service providers (ISPs), Web hosting companies and Web portals. 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 and currently reaches more than 55 million end-users and 20 million wireless devices through its customer relationships. 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, U S 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, Brazil, Switzerland, and Argentina. More information on Critical Path can be found at www.cp.net.

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.