Critical Path Receives Extension from Nasdaq.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 12, 2003

Critical Path, Inc. (Nasdaq:CPTH), a global leader in digital communications software and services, today announced that, in order to allow for developments in the Nasdaq rulemaking process, it has received a 60-day extension, or until April 11, 2003, to re-establish compliance with Nasdaq National Markets continued listing standards, and may be eligible for an additional extension.

Nasdaq recently announced that its Board of Directors had proposed certain modifications to the bid price rules. If the proposed modifications are approved and implemented, the Company could be eligible for an additional 90 days subsequent to the initial grace period to satisfy the $1.00 bid price requirement. Also pursuant to the proposal, the Company would be eligible for an additional 180-day grace period, through September 15, 2003, based on the status of certain Company financial metrics. Nasdaq reserved the right to extend, terminate or otherwise modify the extension, and exemption of the rule, based on developments in the rule making process.

On January 27, 2003, Critical Path filed a preliminary proxy authorizing a shareholder vote on a reverse stock split designed to remedy its non-compliance with the Nasdaq National Market minimum bid price requirement. The proxy will remain on file pending resolution of the proposed rule modifications or until the Company re-establishes compliance.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is a global leader in digital communications software and services. The company provides messaging 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. Solutions are available on a hosted or licensed basis. Critical Path's customers include more than 700 enterprises, 190 carriers and service providers, eight national postal authorities and 35 government agencies. Critical Path is headquartered in San Francisco. More information can be found at www.criticalpath.net.

Forward-Looking Statements 

This press release may contain forward-looking statements, including the Company's statements regarding its finance, business, operations, results and projections including anticipated or projected revenue, expenses and operational and market growth. 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 revenue objectives, sales forecasts and earnings guidance, failure to negotiate favorable deals with strategic partners for technology and for the distribution and resale of our products and services, failure to reach profitability in the short term and further reduce cash operating expenses, challenges associated with our evolving business strategies and the emerging nature of the market for our products and services, failure to achieve anticipated cost savings and efficiencies through reductions in force and outsourcing of operations and service providers, litigation and other distractions associated with the execution of world wide reductions in force, the effects of reductions in force on our remaining workforce and our ability to service customers and meet strategic goals in timely manner, lingering doubts related to the SEC investigation of former executive officers and directors, turnover within and integration of senior management, board of directors members and other key personnel, difficulties in delivering and marketing our product and service offerings, protection of our intellectual property, failure to successfully expand our sales and marketing activities, potential difficulties associated with restructuring, strategic relationships, investments and uncollected bills, difficulties in general economic conditions and in markets in which the Company does business, volatility in the market for stock and risks associated with delisting actions by the Nasdaq National Market on which we are listed, risks and doubts associated with both the operation and viability of the Company and the liquidity of and market for its stock should its common stock be delisted, risks associated with litigation of various forms, challenges related to our international operations, foreign currency fluctuations, unplanned system interruptions, capacity constraints, software defects. 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, 2001 and the Quarterly Reports on Form 10-Q the for quarters ended March 31, June 30 and September 30, 2002, all 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.