Critical Path Raises $18M; General Atlantic Partners and Cheung Kong Group Lead Round.

SAN FRANCISCO -- Critical Path, Inc. (Nasdaq:CPTH), a global provider of messaging solutions for mobile, broadband and fixed-line service providers, today announced that it has signed definitive agreements for $18 million in debt financing led by Cheung Kong Group and General Atlantic Partners in support of Critical Path's new consumer messaging strategy.

"We are very pleased with the recent progress made by the Company," said Tom Tinsley, a partner with General Atlantic Partners and director of Critical Path. "The investors feel that it is important that Critical Path has the financial foundation to support its strategy."

The financing makes available $11 million immediately and $7 million in March 2005, on the same terms. The $18 million financing includes the issuance of warrants for 385,710 shares of Series F Convertible Preferred stock at a warrant exercise price of $14.00 per share (equivalent to $1.40 per share on a common equivalent basis). The three-year loan bears interest at 13.9%, and all payments are deferred until maturity of the loan.

"I am very pleased with the support and confidence of our existing investors," said Mark Ferrer, chief executive officer of Critical Path. "We developed a new strategy concentrating on consumer messaging solutions for mobile, broadband and fixed-line service providers. We announced a new plan to bring expenses in line with revenues, improve margins and reorganize the Company for our new strategy. Today we are focused squarely on executing to that plan."

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is a global provider of messaging solutions for mobile, broadband and fixed-line service providers, headquartered in San Francisco, California. More information is available at www.criticalpath.net.

Forward-Looking Statements:

This press release contains forward-looking statements by the Company and its executives regarding the Company's future financial performance. 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, unplanned system interruptions and capacity constraints, software and service design defects. These and other risks and uncertainties are described in more detail in the Company's filings with the United States Securities and Exchange Commission (www.sec.gov) made from time to time, including Critical Path's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, Forms 10-Q for the three months ended March 31, June 30, 2004 and September 30, 2004 and 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 and the Critical Path logo are the trademarks of Critical Path, Inc. All other trademarks are the property of their holders.