Critical Path Renews Messaging Service Contract with Toyota Motor Sales, USA, Inc.

SAN FRANCISCO -- Toyota Motor Sales, USA, Inc. Reaffirms Critical Path Hosted Messaging as Most Efficient Email Solution for Distributed Users at More Than 1,100 U.S. Dealerships

Critical Path, Inc. (Nasdaq:CPTH), a global provider of digital communications software and services, today announced that Toyota Motor Sales, USA, Inc., the sales and marketing arm of Toyota in the United States, has renewed its messaging service contract and will continue to use Critical Path's Hosted Messaging service to handle electronic communication between the automotive company and its dealerships. Toyota Motor Sales, USA, Inc. has been using Critical Path's service for the past three years as part of its Dealer Communication System, which is used to transmit critical business information to more than 1,100 Toyota and Lexus dealerships throughout the country.

"With so many locations, we need a messaging solution that is reliable, simple to deploy and easy to use," said Andrew Barton, the Dealer Daily product manager at Toyota Motor Sales, USA, Inc. "Critical Path's Hosted Messaging service enables us to improve communications with our dealerships easily and cost-effectively. We evaluated several messaging options and Critical Path provided the best solution, based on our requirements."

With Critical Path's Hosted Messaging service, Toyota Motor Sales, USA, Inc. is providing Web-based access to email for the various departments within its Toyota, Scion and Lexus dealerships throughout the United States. Toyota Motor Sales, USA, Inc. uses the email services to quickly and securely deliver key business information, such as corporate announcements, sales leads and product updates. This has enabled Toyota Motor Sales, USA, Inc. to reduce costs in communicating with its field organization. Furthermore, because the solution is hosted by Critical Path and is Web-based, Toyota Motor Sales, USA, Inc. can provide email to its dealerships without deploying messaging software or installing desktop clients for its many widely distributed users. Toyota Motor Sales, USA, Inc. believes its improved field communication provides a competitive advantage over other automotive companies.

"Toyota Motor Sales, USA, Inc. is a good illustration of how geographically distributed enterprises can simplify their messaging operations and control costs using Critical Path's Hosted Messaging," said Tracy Currie, executive vice president and general manager of hosted services at Critical Path. "With Critical Path's approach, such organizations can keep their efforts and resources focused on driving business, while we take care of delivering highly reliable, advanced messaging services."

Critical Path pioneered the field of hosted messaging in 1997. Its service is built upon the Critical Path Communications Platform, a messaging system designed for high scalability and reliability. Critical Path offers a comprehensive set of messaging solutions for enterprises, telecommunications carriers and service providers. Additional information on Critical Path Hosted Messaging is available at http://www.criticalpath.net/solutions/enterprise/hostedMessaging/.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq: CPTH) is a global provider of digital communications software and services, headquartered in San Francisco. 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 performance, security, scalability and interoperability of our product and service offerings, the ability of our customers to achieve cost savings in the provision of services, industry trends, market and customer requirements, the ability of our products and services to meet the business needs of our customers, the market for products and services like ours 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, 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 U.S. 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, and all subsequent filings with the U.S. 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.

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