Critical Path Outlines Global Direction for Secure Digital Messaging; Critical Path First Company To Take Comprehensive Approach To Secure Internet Messaging.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--July 11, 2000

Critical Path Inc. (Nasdaq:CPTH), the dominant global provider of business-to-business Internet messaging solutions, today outlined its direction for protection of today's digital currency. To support this direction, Critical Path announced the availability of the company's InScribe(tm) Secure File Services and InCase(tm) Certified File Service, which leverages cutting-edge technology to enable businesses and consumers to securely send, store and collaborate on files on any device from anywhere in the world.

According to a recent study by Aberdeen, companies are spending $300 billion annually on services such as certified mail, courier, overnight express, and fax to protect paper-based assets such as payment remittances, credit reports, bills, statements, loan origination documents, and other types of paper-intensive correspondence. Factors that have contributed to the success of physical delivery services, including trackability, security, and reliability, up until now have been absent from digital messaging. Critical Path's direction is to provide the same level of protection to digital assets as paper-based communication, thereby uniquely positioning Critical Path to take advantage of the dynamic shift in the physical delivery market. By 2001, the market will see 35% of overnight deliveries, or 21 million documents per business day, transitioned to the Internet.

"Messaging companies need to evolve to the institutional level of a bank or post office and take a comprehensive approach to providing secure messaging. Imagine applying for a bank loan online. A customer is sending sensitive and confidential information including a social security number and financial information electronically. The customer will demand that the information be protected during this entire process, while the bank needs to ensure the integrity of the information it receives," said Mike Serbinis, chief security officer for Critical Path. "Critical Path is the only company that takes a comprehensive approach to security that involves people, processes and technology, ensuring the security of electronic communication and providing the highest standard of care in the world of messaging today."

Industry Evolves to an Institution

As the Internet evolves into the primary vehicle for mission-critical communication, the issues of online security, privacy and protection are becoming increasingly important. Although email has clearly emerged as the prominent application driving this growth, there is a clear need for new ways businesses and consumers will leverage the Internet to securely communicate information such as legal agreements, financial and personal information and intellectual property. Critical Path's InScribe Secure File Services allow users to securely send, store, access and collaborate on files and documents anytime, anywhere and on any device through a standard Web browser. These advanced secure messaging services are the newest development in the Critical Path's full portfolio of Internet messaging solutions, which include anti-spam, anti-virus and Secure Socket Layer (SSL). The new services include:

-- Web Courier -- Enables users to send, forward and receive

files of any type or size with a standard Web browser. Track

files from point to point, receive confirmation reports with

any or all deliveries and eliminate clogged email inboxes,

high courier costs and barriers to delivery caused by

firewalls.

-- Virtual Hard Drive -- Enables users to safely store documents

in either private or public folders on the Web and instantly

access these files from any Web browser. Eliminates the risks

and hassles inherent in transporting critical files via

floppies or Zip disks, and it enables file sharing with

virtual teams.

-- Team Workspace -- A centralized and secure site for file

sharing and collaboration, Team Workspace facilitates

efficient team communication and eases project management with

built-in version controls, access privileges, public storage

and threaded discussion areas.

With worldwide transactions using mobile wireless devices expected to generate more than $100 billion in revenues by 2005, according to McKinsey research, Critical Path is committed to providing any device access to secure Internet messages. Critical Path's vision is to protect customers' valuable digital assets in all of its forms regardless of whether it is a simple email, wireless message or a mission-critical legal fax document. Critical Path's Internet messaging and collaboration solutions help businesses and consumers replace costly, time consuming physical and paper-based methods of exchanging information with secure, convenient, reliable, and cost-effective Internet messaging solutions.

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 wireless, Internet-centric, telecommunication and corporate businesses. 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. Critical Path's technology currently reaches more than 100 million end-users through its customer relationships including more than 25 million wireless devices. 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, Italy, Switzerland, Japan, Brazil 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.

The statements in this press release relating to matters that are not historical are forward-looking statements. Actual results could differ materially from these forward-looking statements. Risks and uncertainties facing Critical Path are described in its prospectus dated June 1, 1999 and with its periodic filings with the Securities and Exchange Commission (www.sec.gov).