Critical Path Signs Contract With British Telecommunications PLC To Offer Secure, Reliable, and Scalable Email; Agreement Represents Critical Path's Continued Global Expansion.

SAN FRANCISCO--(BUSINESS WIRE)--May 10, 1999--

Critical Path, Inc. (Nasdaq:CPTH), a leading provider of business-to-business email service solutions for Internet service providers (ISPs), Web hosting companies, Web portals, and corporations, today announced an agreement with British Telecommunications PLC (NYSE:BTY), one of the world's largest telecommunications providers.

BT will offer Critical Path's scalable Web-based email solution on selected deals as part of the bundle it sells directly to their enterprise market. The agreement demonstrates Critical Path's commitment to global expansion and validates the growing demand for email outsourcing solutions.

"This agreement with BT represents a significant step forward for Critical Path in its global expansion. The fact that a worldwide company of BT's stature is choosing to outsource to Critical Path is a real testament to our leadership position and our patent-pending technologies," said Doug Hickey, Critical Path's president and CEO.

"BT sought a company that they were confident could supply the secure, carrier-class email their corporate customers need and expect," continued Hickey. "Moreover, they wanted a turn-key solution for immediately bringing Web-based email services to their customers. By choosing Critical Path's complete email service solution, BT is able to confidently offer a reliable, fully scalable email service to its corporate customers that can be implemented within days."

Critical Path will provide BT corporate customers with a full range of messaging services, including:

-- The ability for BT's corporate customers to "re-brand" the Web

interface to match their companies' look and feel;

-- Global access to email anytime, anywhere via the Internet;

-- Easy administration of email accounts online, which is controlled

by the customer;

-- Easy and secure access to email without having to download

software or configure the system;

-- And comprehensive spam blocking.

"Critical Path will continue to pursue global markets. As businesses and consumers continue to rely on the Internet as a means to communicate or grow their business, Critical Path wants to be there to meet that demand with fully scalable, Web-based email service solutions," said Hickey.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is a leading provider of business-to-business email service solutions for Internet service providers (ISPs), Web hosting companies, Web portals, and corporations.

Critical Path has built an industry-leading global infrastructure with data centers connected to key Internet exchange points, and currently reaches millions of end-users through its partnership agreements. Critical Path provides reliable, secure, and highly scalable email, and a flexible suite of enhanced messaging services to partners such as E-Trade, Network Solutions, US West, Sprint, and AOL/ICQ. Critical Path is headquartered in San Francisco,

California, with offices in locations nationwide and in Germany and the UK. More information on Critical Path can be found at www.cp.net.

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 March 29, 1999 and with its periodic 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. All other trademarks are the property of their holders.