Critical Path Comments on Investigations of Former Executives.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 14, 2002

Critical Path Inc. (Nasdaq:CPTH) today commented on news reports regarding investigations of and actions taken against former Company executives who were associated with events that led to the Company's restatement of financial results for the third and fourth quarters of 2000. The Company said all of the individuals involved with the activities that led to the restatement left the company or were terminated nearly one year ago as part of a series of corrective actions taken by its Board of Directors. Its new management team emphasized that no one involved in any of the activities that led to the restatement is still with the Company.

Last week Critical Path announced that it had reached a settlement with the SEC concerning its investigation into the Company's financial restatement. Throughout the investigation, the company has fully cooperated -- and will continue to cooperate -- with the SEC in its investigation of the former Critical Path employees.

Critical Path recently announced the completion of a restructuring plan that led to its return to financial stability, including a $95 million financial transaction by new financial partners that significantly improved its financial position, bringing in $30 million in gross cash proceeds. In its fourth quarter earnings report on February 5, 2002 the Company said it had shown revenue growth for its core Internet communications products for three consecutive quarters, and said it expects to achieve positive EBITDA, excluding special charges, in the fourth quarter of 2002.

About Critical Path Inc.

Critical Path, Inc. (Nasdaq:CPTH) delivers software and services that maximize the value of Internet communications. The company provides messaging and collaboration solutions -- from wireless, secure and unified messaging to basic email and personal information management -- as well as identity management solutions that simplify user profile management and strengthen information security. The standards-based Critical Path Communications Platform, built to perform reliably at the scale of public networks, delivers the industry's lowest total cost of ownership for messaging solutions and lays a solid foundation for next-generation communications services. Critical Path's customers include more than 700 enterprises, 180 carriers and service providers, eight national postal authorities and 40 government agencies. Critical Path is headquartered in San Francisco with offices throughout North America, Europe, Asia and Latin America. More information on Critical Path can be found at www.cp.net

Forward-Looking Statements 

This press release contains forward-looking statements, including the Company's statements regarding, anticipated or projected revenue, expenses and operational growth, markets and potential customers for Critical Path products and services, plans related to sales strategies and global sales efforts, plans to strategically exit certain products and services, plans to reduced operating costs through continued expense reduction, anticipated effects of restructuring and retirement of debt, anticipated charges and cost savings as a result of these plans and our belief as to our ability to successfully emerge from the restructuring and refocusing of our operations. The words "anticipate," "expect," "intend," "plan," "believe," "seek," and "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that might cause future results to differ materially from those projected in the forward-looking statements include, but are not limited to, difficulties of forecasting future results due to our limited operating history, failure to meet sales and revenue forecasts, evolving business strategy and the emerging nature of the market for our products and services, pending litigation and the finalization of the SEC investigation, turnover within and integration of senior management, board of directors members and other key personnel, difficulties in our strategic plans to exit certain products and services offerings, failure to expand our sales and marketing activities, potential difficulties associated with strategic relationships, investments and uncollected bills, general economic conditions in markets in which the Company does business, risks associated with our international operations, foreign currency fluctuations, unplanned system interruptions and capacity constraints, software defects, and those discussed elsewhere in this announcement. These and other risks and uncertainties are described in more detail in Critical Path's Annual Report on Form 10-K for the fiscal year ended December 31, 2000, as amended, and the quarterly report on Form 10-Q for the period ended September 30, 2001, as may be amended from time to time, and all subsequent 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.