Critical Path Quoted on OTC Securities Market; Record Financial Results Reported for Last Quarter; Consumer Messaging Strategy Continues Momentum.

SAN FRANCISCO -- Critical Path (OTC:CPTH), a leading provider of messaging software and services, today announced that its common stock is now being quoted on the Over-the-Counter (OTC) securities market under the ticker symbol CPTH.

"Critical Path's financial results are stronger than ever before, and therefore, as we commence trading on the OTC, we expect to maintain and grow the confidence of our investors," said Mark Ferrer, CEO and Chairman, Critical Path. "Not only have we improved our financials, but we have introduced exciting new solutions that we believe position us to take advantage of a rapidly growing consumer messaging market."

On October 31, Critical Path reported record results for the fiscal third quarter of 2005, including positive cash flow and continued improvement in GAAP results. This comes on the heels of five consecutive quarters of gross margin improvement and significant operating expense reduction over the course of the last year. In addition, the company reported its first revenues from its new Memova(TM) Mobile solution last quarter.

The transition to the OTC follows the company's recently reported delisting from the Nasdaq National Market. While the company's common stock is currently being quoted on the OTC, the company is also working with its market makers to enable the quotation of the stock on the OTC Bulletin Board (OTC BB). The OTC is a regulated, but decentralized, market of securities traded via an electronic quotation system that serves more than 3,000 companies. OTC securities include national, regional, and foreign equity issues.

About Critical Path, Inc.

Critical Path's Memova(TM) solutions provide a new and improved email experience for millions of consumers worldwide, helping mobile operators, broadband and fixed-line service providers unlock the potential of email in the mass market. Memova(TM) Mobile gives consumers instant, on-the-go access to the messages that matter most. Featuring industry-leading anti-spam and anti-virus technology, Memova(TM) Anti-Abuse protects consumers against viruses and spam. Memova(TM) Messaging provides consumers with a rich email experience, enabling service providers to develop customized offerings for high-speed subscribers. Headquartered in San Francisco with offices around the globe, Critical Path's messaging solutions are deployed by more than 200 service providers throughout the world. More information is available at www.criticalpath.net.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements by the company and its executives regarding the performance of our product and service offerings, our expected revenue results, gross margins and operating expenses for future periods, industry trends, the ability of our products and services to meet the business needs of our customers and compete favorably in the marketplace, management of spending levels, the market for products and services like ours, our ability to focus on business strategy and capitalize on growth opportunities, the listing of the company's common stock on the OTC Bulletin Board, the anticipated impact of the listing of the company's common stock on the OTC on the company's financial results and expectations for future performance and the performance of our senior management in achieving strategic goals. The words and expressions "look forward to," "will," "expect," "plan," "believe," "seek," "strive for," "anticipate," "hope," "estimate" and similar expressions are intended to identify the Company's forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, our evolving business strategy and the emerging and changing nature of the market for our products and services, our ability to deliver on our sales objectives, the ability of our technology and our competitors' technologies to address customer demands, changes in economic and market conditions, and software and service design defects. These and other risks and uncertainties are described in more detail in the Company's filings with the U.S. Securities and Exchange Commission (www.sec.gov) made from time to time including Critical Path's Annual Report on Form 10-K and Form 10-K/A for the fiscal year ended December 31, 2004, its Quarterly Reports on Form 10Q for the three months ended March 31, June 30 and September 30, 2005, its Current Reports on Form 8-K, as may be amended from time to time, and all subsequent filings with the United States Securities and Exchange Commission (www.sec.gov). The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

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