Critical Path Updates Outlook for the Third Quarter

"Like every company in our sector, Critical Path's revenues are being adversely affected by continued sluggishness in corporate and carrier spending. We continue to demonstrate prudent expense controls and cash management while simultaneously creating strategic programs that will increase the value of Critical Path - including our recently announced alliance to drive our hosted messaging business and offer a complete managed messaging service that is unmatched in terms of scalability, quality and cost," said William E. McGlashan, Jr., chairman and chief executive officer.

The Company also announced it received, as expected, a compliance notice from The Nasdaq Stock Market, Inc. Nasdaq informed Critical Path that the Company had not maintained the minimum bid price required for continued listing on the Nasdaq National Market. Critical Path will have until December 19, 2002 to regain compliance with Nasdaq's minimum bid price for continued listing. Critical Path intends to take steps to maintain its listing on the Nasdaq National Market, and management does not believe the current stock price accurately reflects the value of the Company.
Critical Path will report results for the third quarter 2002 on November 5, 2002. Those who would like to participate in the conference call should dial 877/231-3543 or 706/634-1329 (international) prior to 4:50 PM ET on the day of the call. The conference call and its replay will also be Web cast and are accessible from the Company's Web site, www.cp.net. A telephone replay of the conference call will be available for seven days following the call. To access the replay, please dial (800) 642-1687 or (706) 645-9291 (international), passcode 6176124.

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

Critical Path Forward-Looking Statements:
This press release contains forward-looking statements, including the Company's statements regarding, its finance, business and operations including anticipated or projected revenue, expenses and operational growth, markets, strategic partners and potential customers for Critical Path products and services. 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 sales and revenue objectives, forecasts and earnings guidance, failure to negotiate favorable deals with strategic partners for technology and the distribution of our products and services, the relative success of strategic partnerships and global sales alliances, our evolving business strategies and the emerging nature of the market for our products and services, continued doubts about the Company 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, general economic conditions in markets in which the Company does business, volatility in the market for stock and risks associated with potential delisting actions by the market on which we are listed, risks associated with our international operations, foreign currency fluctuations, unplanned system interruptions and capacity constraints, software defects, and those discussed elsewhere in this announcement and the attached statements. 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 for quarters ended March 30, and June 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. All other trademarks are the property of their holders.

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Critical Path Contact Information:    
For Reporters:
Shane Dolgin
Public Relations
415.541.2661
shane.dolgin@criticalpath.net   For Financial Analysis:
Mike Bishop
Investor Relations
415.541.2619
mike.bishop@criticalpath.net  

Ernst van der Ploeg
Regional Sales Director
For Critical  ath Netherlands

+31 (0) 6 512 77060 phone
+31 (0) 6 105 48013 fax

A Global Leader in Digital Communications Software and Services