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Critical Path Reports Q2 Preliminary Results In-Line With Guidance SAN

FRANCISCO - (July 3, 2002) - Critical Path, Inc. (CPTH), a global leader in Internet communications, today announced that it expects to report financial results that are in-line with previously released guidance for the second quarter 2002. The Company expects that revenues will be in the range of $22 million to $24 million. Operating expenses excluding special charges and depreciation are anticipated to be better than expected and in the range of $27 million to $29 million. The Company also announced it intends to report one-time restructuring charges of approximately $1.5 million in the second quarter.

"Critical Path is performing to plan despite one of the most difficult markets in recent memory. While we are constantly striving to improve our sales performance, the revenue-producing programs we have put in place have begun to bear fruit and we are continuing to keep a firm control on expenses and cash management," said William McGlashan, Jr., chairman and chief executive officer.

Critical Path will report results for the second quarter on August 7, 2002 at 5:00 PM ET. 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 will also be Web cast and is accessible from the Company's Web site,
www.cp.net. A replay of the conference call will be available following the call on the Critical Path Web site.

About Critical Path, Inc.
Critical Path, Inc. (CPTH) delivers software and services that maximize the value of Internet communications. The company provides messaging and collaboration 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. 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 with offices throughout North America, Europe, Asia and Latin America.

More information on Critical Path can be found at
www.cp.net.

Forward Looking Statements:
This press release contains forward-looking statements by the Company and its executives regarding expected future business, financial and product performance, including the Company's statements regarding the strategic refocusing of our operations throughout the world, the performance of senior executives and managers in meeting strategic goals, industry trends, market requirements and the ability of our products and services to meet the business needs of our customers, and the market for outsourced services like ours and our strategic partners. The words and expressions "look forward to," "will," "expect," "plan," "believe", "seek," "strive for" "anticipate", "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, risks related to international operations including political and economic climates, 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, 2001, and the Quarterly Report on Form 10-Q for the quarter ended March 30, 2002, both as may be amended from time to time.

# # #

Note to Editors: Critical Path and the Critical Path logo are trademarks of Critical Path, Inc. All other trademarks are the property of their holders.

# # #

For additional information, contact:
For Reporters:
McGrath/Power PR
Roger Fortier
408.727.0351
Rogerf@mcgrathpower.com    

For Financial Analysts:
Critical Path, Inc.
Mike Bishop
415.541.2619
mike.bishop@cp.net

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