Critical Path to Work with Microsoft to Deliver Hosted Exchange 2000 Solution.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--July 14, 2000

Critical Path To Expand Proven Enterprise-Class Hosted Exchange

Solution With Addition Of Exchange 2000 Server

Critical Path Inc. (Nasdaq:CPTH), the dominant global provider of business-to-business Internet messaging solutions, today announced it is working with Microsoft Corp. to deliver the benefits of Exchange 2000 to customers.

As a Microsoft Exchange Application Service Provider (ASP), Critical Path is able to provide its growing base of hosted Exchange customers with a seamless way to upgrade from Exchange Server 5.5 to Exchange 2000. Critical Path's InScribe(TM) Groupware Hosting for Microsoft Exchange will also be able to take advantage of the Exchange 2000 platform to provide customers with the advanced messaging and collaboration features they demand including support for wireless devices, unified messaging, spam and content filtering, anti-virus protection, instant messaging and conferencing.

As one of the leading companies offering hosted Exchange solutions today, Critical Path currently provides businesses with the rich messaging and collaboration features of Exchange while allowing them to significantly reduce hardware and management costs and preserve scarce IT resources.

"We have been using Critical Path's hosted Exchange solution for the past year. Critical Path allows us to provide more than 1,200 associates and business partners in over 170 offices with the rich feature set of Exchange without the associated cost and headaches of managing the system," said Amy Grothaus, Web Manager of the Kansas Farm Bureau Services. "Another reason we selected Critical Path's hosted Exchange solution is that when we decide to upgrade to Exchange 2000 Critical Path will handle all the upgrades for us making it seamless and less time consuming for our company, allowing our focus to remain on our core business."

As the brand-behind-the-brand Critical Path is able to leverage a number of significant relationships with major telecommunication companies such as WorldCom and Qwest, system integrators and Application Service Providers (ASPs) to deliver enterprise-class hosted solutions to businesses worldwide.

"The combination of Critical Path's world-class hosting infrastructure, worldwide customer base and leading industry partnerships along with Exchange 2000's rich messaging and collaboration features makes scalable and reliable Exchange services available to a broad range of corporate customers," said Kevin Breunig, group product manager for Business Productivity Group marketing at Microsoft Corp. "This relationship with Critical Path allows more customers to take advantage of features like instant messaging, the web storage system, conferencing, and traditional email and scheduling features faster than before."

When customers select Critical Path's InScribe Groupware Hosting For Microsoft Exchange, Critical Path manages all the hardware and software for the customer in a highly secure environment within Critical Path data centers, provides 24x7 monitoring and support of all systems and offers advanced features such as virus scanning and Microsoft Outlook Web Access. Companies that cannot afford or manage an advanced messaging and collaboration system in-house can now reap the full range of Exchange 2000 benefits for a low monthly price per user, without the need to dedicate IT staff to managing the system.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq:CPTH) is the dominant global provider of complete end-to-end Internet messaging and collaboration solutions for wireless, Internet-centric, telecommunication and corporate businesses. Through its allsourcing strategy, Critical Path is the only advanced messaging provider to offer businesses the flexibility to outsource, midsource or insource all or part of their messaging and collaboration applications. Critical Path has built an industry-leading global infrastructure with data centers connected to key Internet exchange points. Critical Path's technology currently reaches more than 100 million end-users through its customer relationships including more than 25 million wireless devices. Critical Path provides reliable, secure, and scalable e-mail and a flexible suite of enhanced messaging services to partners such as E*TRADE, CompuServe, Network Solutions, U S West, Sprint, France Telecom, British Telecommunications, and ICQ. Critical Path is headquartered in San Francisco, with offices in locations nationwide and in Germany, England, Ireland, France, Italy, Switzerland, Japan, Brazil and Argentina. 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 June 1, 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.