Critical Path Awarded Summary Judgment In Trademark Dispute; Fenwick & West Wins Two-Year-Old Case On Behalf of Critical Path.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 6, 2001

Critical Path Inc. (Nasdaq:CPTH), the leading provider of Internet messaging infrastructure, today announced that on Tuesday, April 3, Judge William Elfving, presiding over the Santa Clara County Court, granted Critical Path's motion and dismissed a two-year-old case for trademark and trade name infringement that had been brought against it by Santa Clara-based Critical Path Solutions (CPS).

CPS, a company that has been in the direct mail, laser printing and data processing business, with particular focus on political campaigns, since 1979, argued that Critical Path's Internet messaging business was encroaching into an area of natural expansion for CPS, and sued for injunctive relief and damages. Critical Path consistently argued in the case that it was not infringing CPS's trademark or trade name, and that CPS had no proof that any customers of CPS or Critical Path were likely to be confused about the parties' respective services and offerings. This argument was supported by numerous witnesses who also testified that there was no evidence of any confusion between CPS and Critical Path.

In argument before the court on Thursday, March 29, Fenwick & West's attorneys moved for summary judgment on all claims asserted including trademark infringement, trade name infringement, dilution, common law unfair competition, and statutory unfair competition, arguing that Critical Path's Internet messaging infrastructure business was clearly distinguishable from CPS's direct mail, laser printing and data processing business. On Tuesday, April 3, Judge William Elfving granted Critical Path's motion in full and ordered that judgment be entered in favor of Critical Path.

"Given the fact that trademark disputes tend to be intensely factual in nature and therefore often are resolved through expensive and time-consuming trials, this is a huge win for Critical Path," said Claude Stern, partner at Fenwick & West. "Our team of legal experts conducted extensive discovery, research and depositions leading up to last week's successful arguments and securing a victory that will enable Critical Path to maintain its position as a leader in Internet messaging infrastructure solutions."

"Critical Path is pleased with the judgment and happy to be able to put this lawsuit behind us," said Diana Whitehead, president of Critical Path.

About Fenwick & West LLP 

Established in 1973, Fenwick & West LLP is one of the nation's premier law firms providing comprehensive legal services to national and international technology clients, particularly in the areas of intellectual property, the Internet, venture capital and other corporate finance, joint ventures, M&A and strategic relationships, litigation and dispute resolution, antitrust, taxation, and employment and labor law. The only law firm named to Fortune's list of the "100 Best Companies to Work For," in three consecutive years (1999-2001), Fenwick & West has offices in Palo Alto and San Francisco, Calif., as well as Washington, D.C. For more information, please visit Fenwick & West's Web site at www.fenwick.com.

About Critical Path, Inc.

Critical Path Inc. (Nasdaq: CPTH) ignites the power of information for eBusiness by providing the Internet messaging infrastructure upon which the new economy is built. The company is a single resource that powers the flow of mission-critical information through an integrated portfolio of secure messaging, directory, integration and collaboration solutions. Critical Path's technology strengthens all aspects of the eBusiness value chain by providing the messaging infrastructure that fuels customers' new and existing eBusiness initiatives. Critical Path is headquartered in San Francisco, with offices worldwide. More information on Critical Path can be found at www.cp.net.

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

This press release contains forward-looking statements regarding the Company, including statements regarding the Company's future performance. Actual results may differ materially from those suggested. The risks and uncertainties that may cause actual results to differ include market conditions, the ability to release new products in a timely manner, the success of the products, continued customer support, the company's ability to retain and expand strategic relationships, and the company's ability to retain and attract employees. These and other risks and uncertainties are described in more detail in the Company's Critical Path's Annual Report on Form 10-K/A filed April 5, 2001 and with subsequent filings with the Securities and Exchange Commission.